Beginning of end: CO2 falling, taxes rising

New carbon-trading laws intended to reduce climate-changing pollution emissions took effect Thursday in New Zealand, immediately sending gas prices higher.

Most transport fuel suppliers increased prices by New Zealand dollars 0.03 a liter ($0.12 cents a gallon) Thursday, taking the cost of standard gas for vehicles to NZ$6.80 ($4.67) a gallon. Electric power prices also began rising, as producers using carbon-based fuels passed their carbon costs onto consumers.

"It brings us no pleasure in putting that sort of price impact on New Zealanders, but that's what we have to do if we are going to do our fair share around this huge challenge of climate change," Climate Change Minister Nick Smith said.

He said households on average will pay an extra NZ$3.00 ($2.10) a week for vehicle fuel and electricity.

http://www.ajc.com/news/nation-world/nz-carbon-price-system-561734.html