Implementing the emissions trading scheme
To allow a smooth transition across the economy, the emissions trading scheme will be phased in across sectors between 2008 and 2013. By 2013 all major sectors will be included.
There will also be transitional assistance to the forestry, industry, fishing and agriculture sectors and to households to support their adjustment to emissions pricing.
The emissions trading scheme will be linked to the international market in units accepted under the Kyoto Protocol, and will be able to support bilateral linkages to other domestic trading schemes in the future. The scheme is designed to be flexible to accommodate New Zealand’s future international climate change obligations.
Further regulations will be developed to support implementation of the emissions trading scheme. For example, regulations will provide more detailed information on sectoral methodologies for calculating and reporting emissions and management of transactions under of the New Zealand Emissions Unit Register.
Information on implementing the emissions trading scheme:
Timeline of the emissions trading scheme
Text description of timeline
The forestry sector will be the first to enter the scheme, with landowners assuming unit obligations for eligible deforestation emissions and the opportunity to earn units for eligible afforestation activity as of January 2008. The stationary energy and industrial process sectors will assume unit obligations under the scheme in January 2010, followed by the liquid fossil fuels (mainly transport) sector in January 2011. The final sectors to enter the scheme – agriculture, waste and synthetic gases – will assume unit obligations in January 2013. Later entrants to the scheme (ie, the liquid fossil fuels, agriculture, waste and synthetic gas sectors) will have an “on ramp” into the scheme through voluntary reporting starting two years before their unit obligations commence, and mandatory reporting starting one year before their unit obligations commence.
New Zealand's incoming government will delay the implementation of the country's emissions trading scheme (ETS) pending a full inquiry into climate change.

The decision was revealed in the National Party's confidence and supply agreement with the ACT Party.  The agreement commits National to a review of climate change policy by a special select committee of Parliament.
Prime Minister of New Zealand.
The review will include the emissions trading scheme and possible alternatives to it, as well as "hearing competing views on the scientific aspects of climate change" and considering whether responding to climate change is economically worthwhile. Implementation of the ETS would be delayed until the review is complete — a process expected to take at least a year.

The ETS requires companies emitting greenhouse gases to cover their emissions with permits.  The legislation was passed on September 10, 2008, and provides for a phased implementation, with forestry entering the scheme immediately, industrial and energy sector emissions entering in 2010, and transport fuels in 2011.

The National Party won a victory over the Labour Party in last week's elections, and has formed a new government cabinet, led by prime minister-elect John Key.