Slow progress on climate change as expected - Key

Progress on climate change at United Nations talks was slow but as expected, Prime Minister John Key says.

The talks in Cancun, Mexico, approved a two-part deal that creates a Green Climate Fund and set a target of limiting a rise in average world temperatures to below 2degC over pre-industrial times. But there was no major progress on how to extend the Kyoto Protocol, which obliges almost 40 rich nations to cut greenhouse gas emissions.

"Some slow progress is being made and that's in line with the expectations that we have," Mr Key told Newstalk ZB this morning.

While progress was made in some areas, "we are less optimistic about what might happen in terms of a second commitment period to Kyoto but let's see how things progress."

Climate Change Minister Nick Smith and International Climate Change Negotiations Minister Tim Groser said the deal was a significant step forward toward a global, legally binding and comprehensive agreement.

"The Cancun agreements are the most significant internationally on climate change in a decade and provide for moving forward positively after the loss of confidence a year ago in Copenhagen," they said last night.

The Green Party's climate change spokesman, Kennedy Graham, said today the agreements were a positive step.

"What Cancun has done is restore confidence in the negotiation machinery that last year's Copenhagen experience left in tatters," he said.

"But when the substance of current pledges is analysed, we must realise we're in danger of cementing in national pledges that are insufficient to avoid dangerous climate change."

Labour's environment spokesman, Charles Chauvel, said that on first impression the deal looked like it should be marked six out of 10.

"It's good to see a climate fund established with guaranteed representation from small island states and technology transfer expertise provided for," he said.

"It's bad to see how weak the deal is on dealing with deforestation, especially in the developing world."

Mr Groser said key components of the agreements included:

* The framework for emission reductions targets for developed countries and mitigation actions for developing countries;

* Systems for measurement, reporting and verification;

* Enhanced actions to assist adaption and measures to reduce deforestation; and

* A new Green Climate Fund and the development and transfer of green technologies.

"New Zealand argued that a simple extension of the Kyoto Protocol only covering 27 percent of global emissions would not work," Dr Smith said.