The emissions trading scheme which is now in law won't survive for long in its present form, the Green Party says.
Parliament yesterday passed legislation that sets up the Government's new emissions trading scheme (ETS) by 63 votes to 58 after striking a deal with the Maori Party.
It is a watered down version of the ETS passed by the previous government just before last year's election and gives big polluters a much easier ride.
Green Party co-leader Russel Norman told NZPA the allocation of free carbon credits would put an enormous burden on taxpayers.
"It can't possibly survive in its current form because the level of subsidy is so great, the taxpayer-funded liability is enormous," he said.
"There's just no way the taxpayer can possibly carry the burden."
Dr Norman said National and the Maori Party had failed to take on their generation's responsibility to cut emissions.
"They've passed it on to the next, and it's quite shocking."
Labour also opposed the ETS and, like the Greens, considers it is an inadequate response to climate change.
Climate Change Minister Nick Smith, who is in charge of it, told Parliament it was a workable, affordable scheme.
"New Zealand has been going round in circles for a decade on how to impose a cost on carbon pollution," he said.
"This bill means that from July 1 next year there will be a price on carbon and an incentive for afforestation."
Labour's climate change spokesman, Charles Chauvel, said the ETS was fundamentally flawed.
"It is economically irrational, socially inequitable, environmentally counter-productive and fiscally unsustainable," he said.
NZPA