The government’s greenhouse gas emissions reduction target of between 10% and 20% below 1990 levels by 2020, has received a mixed response from business and environmentalists.

The target, announced yesterday, will be part of New Zealand's negotiating position at an international climate change conference later this year and the final target would depend on how those talks went.

Prime Minister John Key said the targets were credible and the cuts of 40% called for by Greenpeace would cause too much economic damage.