The Government will enter negotiations for Negotiated Greenhouse Agreements with New Zealand Aluminium Smelters Limited and some of Carter Holt Harvey's key manufacturing operations.

Negotiated Greenhouse Agreements (NGAs) are a key element of New Zealand's climate change policy.

An NGA is a binding agreement between a firm and the Government that commits the firm to moving towards world's best practice in managing greenhouse gas emissions. In return, the Government provides a full or partial exemption for the firm from the emissions charge that is to be introduced by 2008. NGAs are limited to firms or industries whose international competitiveness would be at risk from an emissions charge.

In 2003, the Government signed New Zealand’s first NGA with the New Zealand Refining Company, which runs New Zealand's only oil refinery. In November, it announced agreements to negotiate with ACI Glass Packaging, paper mill operator Norske Skog Tasman and mining companies Newmont Waihi and GRD Macraes.

Mr Hodgson said the negotiations were a significant step in the implementation of climate change policy, which is designed to enable New Zealand to meet its obligations under the Kyoto Protocol.

"NGAs will constrain greenhouse gas emissions while protecting the international competitiveness of New Zealand businesses. They encourage businesses to pursue the economic and environmental advantages of best practice in emissions management."

The New Zealand Climate Change Office at the Ministry for the Environment takes applications from firms seeking NGAs and assesses their eligibility and priority. It has further applications under assessment.

Company information

Carter Holt Harvey is a wood fibre processing company with significant interests in wood products, packaging, tissue, forests and pulp and paper. The company employs 10,500 people directly and has a head office in Auckland. Its manufacturing operations related to the NGA are:

Pulp and Paper, producing kraft market pulp and linerboard at the Kinleith and Tasman mills, recycled medium paper at Penrose and cartonboard at Whakatane.

Tissue, producing soft paper products at Swanson, Te Rapa and Kawerau.

Reconstituted wood panels, manufacturing particleboard, fibreboard and mouldings at Rangiora and Kopu.

Plywood, manufacturing a range of plywood products at Tokoroa.

New Zealand Aluminium Smelters Limited operates New Zealand’s only primary aluminium smelter at Tiwai Point. NZAS is a joint venture owned by Comalco Limited (79.36 per cent) and Sumitomo Chemical Co. Ltd (20.64%). NZAS produces 334,000 tonnes of aluminium per year.

For more information on Government climate change policy, visit climatechange.govt.nz