Convenor of the Ministerial Group on Climate Change (and former Energy Minister) Pete Hodgson today said the streamlining of the Negotiated Greenhouse Agreements (NGAs) process reduced compliance costs and made it more straightforward for the firms that were likely to apply for NGAs.

"This government is determined to play its part in the global effort to limit the extent and impact of climate change along with 147 other ratifying nations of the Kyoto Protocol," said Hodgson.

"Our NGA policy enables us to take action to protect our environment and the Kiwi way of life for future generations at the same time as protecting our competitive advantage."

Firms with NGAs can gain exemptions from the carbon tax, proposed to be implemented from 2008, in return for moving to world's best practice in emissions management. Firms whose international competitiveness would otherwise be at risk may apply for an NGA.

In particular, the process for defining world's best practice in emissions management, and the setting of a pathway against which progress towards attaining it is measured, have been simplified. Issues around the consequences of switching fuel supply have also been addressed.

Firms of any size may apply although, to date, these have typically been larger firms. The government has already signed NGAs with the New Zealand Refining Company, which operates this country’s sole refinery at Marsden Point near Whangarei, and OceanaGold, which operates the Macraes and Reefton goldfields.

Also the government is negotiating with ACI Glass Packaging, Carter Holt Harvey, Fletcher Building, New Zealand Aluminium Smelters, minerals mining company Newmont Waihi, and Norske Skog Tasman.