The New Zealand government ratified the Kyoto Protocol in Dec 2002 and would be introducing an emissions tax in 2007 to meet the targets of the protocol. Many firms fear that New Zealand's economic competitiveness would suffer as their overseas competitors are not subjected to such emissions tax.

The New Zealand government has realised this danger and they are giving out Negotiated Greenhouse Agreements (NGAs) to businesses. The NGAs are intended to provide relief from some or all of the emissions tax in exchange for a binding commitment to achieve energy efficiency and emissions management targets based on a measure of the world's best practices. However, a large number of small and medium firms may find it difficult to obtain an NGA.

Some of these firms may find it easier to negotiate an NGA as a single entity on behalf of other films. The industry is also encouraging the government to develop second-tier policy mechanisms that may give smaller firms some relief and encouragement to manage emissions.

A study by U.S. National Academy of Public Administration reported that too many older coal-fired power plants whose emissions contribute to acid rain, smog and asthma are exempted from having to install the state-of-the-art pollution control equipment.

In 1977, the U.S. Congress amended the Clean Air Act to require new power plants, refineries, and factories to have the latest pollution control equipment. In Dec 2002, the Bush administration changed the regulations to grant companies greater flexibility to expand older plants without installing new pollution control equipment for a decade. This new regulations allow plants with numerous emission sources to increase pollution from some sources as long as the overall plant-wide emission does not increase. Since these plants are built before 1977, more than 80 percent of the 1,100 coal-burning power plants are exempted from installing the state-of-the-art pollution control equipment.

In 1999, these plants had generated 1.8 trillion kilowatt hours a year and by 2010, energy generation is expected to grow to 1.9 trillion kilowatt hours a year.

An air pollution research carried out on half-a-million people in the U.S. for 16 years found that air pollution caused serious health effects to the general public. The study found that up to one fifth of all lung cancer deaths are caused by air pollution such as tiny airborne particles emitted largely from motor vehicle exhausts.

Fuel additives are added to motor vehicles to increase the combustion efficiency of fuel. These additives are harmful to human health. Researchers have found that by adding ethanol, petrol and diesel could burn more efficiently and cleaner, with reduced fine particle emissions and substantially reduced carbon dioxide and harmful carbon monoxide emissions.

Generally for every 10 percent of ethanol added to the fuel, particle emissions could reduce by 10 percent. If ethanol could replace other harmful additives in fuel, it would have major health and savings on health budgets.

An international study, published in the European Heart Journal, has found that a slight daily increase in sulphur dioxide levels could lead to a rise in hospital admissions for heart disease.

The study had compared the correlation between the sulphur dioxide levels and hospital admission rates in 7 European cities and regions which includes London, Birmingham, Madrid, Paris and Rome. The results showed that an increase of only 10 µg/m³ of sulphur dioxide would lead to 1% increase in hospital admission for coronary problems within the next 48 hours.

Doctors also suspected that particulates, which are ultra-fine particles of soot and unburned oil from diesel engine exhaust, could cause heart disease and lung disease. The question of why air pollution causes heart disease remains unanswered. One theory is that particles get into the lungs and cause an inflammatory reaction which may result in the blood being more sluggish and triggering heart attacks in vulnerable people. Another theory is that sulphur dioxide may have an effect upon the rhythm of the heart, causing it to beat erratically.

The study would probably pressurised the EU Governments and environment agencies to demand the power stations and shipping industry to reduce the sulphur dioxide emissions or even ban coal burning in homes.

The United States decides to seek international support for a plan to reduce dependence on oil imports and switch cars to a "hydrogen economy". Hydrogen fuel cells emit very little pollution but hydrogen is difficult to produce and is derived mainly from hydrocarbons such as natural gas and gasoline. This uses substantial energy and emits greenhouse gases.

The United States has committed US$1.7 billion for the first 5 years of a long-term hydrogen energy technology and infrastructure development programme. The European Commission also plans to spend close to US$2.3 billion on hydrogen-related research over the next 4 years. Hybrid cars, which combine electric motors with small petroleum engines, would outpace the environmental benefits of hydrogen fuel cell cars until at least 2020.

California is considering a new plan to carry out research to test for minute traces of pollution and toxins in humans. California may be the first American state to conduct biomonitoring by testing human blood, urine, breast milk and fatty tissues. Scientists have studied how chemicals show up in the environment, and how those chemicals break down, but relatively little research has been done on the chemicals' effect on humans.

Both Sweden and Germany have long-standing biomonitoring programnes and the results of those studies eventually led to EU restrictions on certain products.