Don’t look now, but it seems our cousins from across the ditch have shown us up once again.

More than a decade after Jenny Shipley made history as New Zealand’s first female prime minister, the country’s conservative government is about to introduce its first emissions trading scheme. The New Zealand ETS — which comes into effect today — is central to efforts to reduce greenhouse gas emissions, which are among the highest in the developed world.

But not everyone is happy. Opposition to the ETS has been building in The Shaky Isles, with consumer groups worried they are sharing more of the costs than the big emitters, despite polluting less overall. Prime Minister John Key has faced a barrage of criticism over the exclusion of some industries, admitting households will bear more than their fair share of increased energy costs under the ETS.

As of today, Kiwi hip pockets will be just a little lighter, with petrol expected to increase by 3.1 cents a litre, diesel by 3.4 cents a litre and electricity by one cent a kilowatt hour.

The Dominion Post and New Zealand Herald have both urged the government to keep an eye on power companies who may use the ETS to justify unnecessary price rises, while regional producers and exporters have been vocal critics of the ETS, believing the scheme will cost them millions and put them at a disadvantage against overseas competitors.

Meanwhile, the New Zealand Climate Science Coalition have even suggested Prime Minister Key look across the Tasman and take Julia Gilliard’s lead on how to handle the ETS and defer it until the next election. But environment minister Dr Nick Smith said the government’s hand was forced because its greenhouse gas emissions have increased by 25% over the past 20 years.

“The ETS is the most efficient and least cost way to bring emissions under control, meet our international obligations and protect New Zealand’s clean, green brand.”

Dr Smith is adamant New Zealand needs an ETS to show the world it means business on climate change: “New Zealand can’t go around the world promoting itself as 100% pure when emissions have gone up more here than any other developed country.”

Tourism is the country’s largest export industry, contributing $18.6 billion to the economy each year and employing one in ten Kiwis. With 9% of the nation’s GDP on the line, the last thing the New Zealand government would want is a reputation for being the land of the long black cloud.

*This post has been corrected for a factual error.