New Zealand passes carbon law through key stage

WELLINGTON (Reuters) - New Zealand's revised emissions trading plan is set to become law after parliament on Wednesday approved details of the scheme.

A formal parliamentary vote is expected later today.

The governing minority National Party with the backing of the small Maori Party saw the legislation pass a detailed clause-by-clause examination, without amendments, making its final passage into law a foregone conclusion.

"It is a critical and important first step in our nation's effort to do our fair share in combating climate change," Climate Change Minister Nick Smith said in parliament after the vote.

National had been pushing the law's passage ahead of next month's Copenhagen climate summit.

New Zealand has set a target of cutting greenhouse gas emissions by between 10 and 20 percent by 2020 on 1990 levels, depending on the outcome of the Copenhagen meeting.

The government suspended the previous government's carbon trading scheme and brought in changes, giving extra support to big carbon emitters and delayed entry for the farm sector.

The government said it wanted New Zealand to be more closely aligned to neighboring Australia, where a revised carbon-trade scheme offering increased compensation to big carbon emitters, coal companies and electricity generators was unveiled this week. Other changes include, a delay to the entry of certain sectors, a cap on the price of carbon and support for forestry planting.

Business groups have largely backed the changes proposed by National, while environmental groups say it does not go far enough in putting the onus on large polluters to cut emissions.

For a factbox on the changes see [ID:nWEL486229], and for a factbox on New Zealand's emissions profile see [ID:nWEL472043] For more see

(Reporting by Gyles Beckford; Editing by Michael Perry)