It seems consumers will bear the cost of the emissions trading scheme while farmers and horticulturists fear their businesses and New Zealand's key export industries could pay the ultimate cost and be forced out of business.
But Agriculture Minister Jim Anderton has moved to ease the sector's concerns, saying through a spokeswoman, that if there was no greenhouse gas emission mitigating technology, the sector would get additional time to adjust.
Parliament this week passed the Climate Change (Emissions Trading and Renewable Preference) Bill which Climate Change Minister David Parker hailed as helping reduce greenhouse gas emissions and climate change.
However, it appears consumers will end up paying.
A BP spokeswoman said yesterday's international price of carbon credits was $44 a tonne, which would increase the price of petrol 12c a litre.
A Meridian Energy spokes-woman said the company believed the ETS was the best way to change consumer behaviour, and she said the company accepted Government predictions of its impact on energy prices.
Those were: retail electricity price to rise 1c to 2c per kWh, gas 0.9c to 1.7c per gJ and a 20kg bag coal of 90c to $1.50.
Fonterra said the higher production costs would filter through to higher consumer prices.
Meat and Wool New Zealand chairman Mike Petersen warned the $5 billion sheep and beef industry could disappear.
Other than reducing productivity or the number of animals carried, little mitigation technology was available.
Horticulture New Zealand president Andrew Fenton feared his members could also go out of business.
The $2.6 billion export earner would lose its competitiveness and consumers become reliant on food imports from Chile, South Africa and China which had higher greenhouse gas emissions, he said.
"As our growers slowly go out of business under the weight of ETS costs, New Zealand consumers are going to end up eating imported product grown in countries with much higher carbon output than ours is now."
Lincoln University farm management lecturer Guy Trafford, has calculated the cost of ETS in 2013 for a 4000-stock unit sheep and beef farm at $36,088 a year and for a 350-cow dairy farm $40,804.
"The problem for agriculture is that it's essentially a tax and there is still a huge anomaly, as we seem to be bringing it in for agriculture when most of the world is ignoring agriculture."
The New Zealand Business Council for Sustainable Development chief executive Peter Neilson said the legislation was the first step in changing the behaviour of consumers and addressing the issue of climate change.
He was disappointed there was no multi-party support, but said the fact New Zealand had taken this step would give it credibility and bargaining power in international negotiations.
"It's an easier position to argue when you are doing something," he said.
ETS - THE FACTS
What is New Zealand's greenhouse gas emissions profile?
We account for 0.2% of global emissions of which 50% comes from agriculture.
What is an emissions trading scheme (ETS)?
It is a market-based scheme which limits the amount of greenhouse gas that can be emitted.
Those sectors that do not reduce emissions will have to buy New Zealand units (NZU) from those that have.
One NZU equates to one tonne of carbon dioxide equivalent.
What greenhouse gases and sectors will be included?
The system encompasses all greenhouse gases and all sectors, although some industries which are reliant on exporting, such as agriculture, are being given NZUs and a phase-in period.
When does the ETS apply?
Electricity in 2010, fuel from 2011 and agriculture is phased in from 2013 and fully exposed from 2030.
What will be the impact on consumers?
It depends on the international price of carbon dioxide at the time the sector is included, but the general consensus is the cost of everyday items will rise.
BP says if the ETS applied to it yesterday, petrol would rise 12c a litre at the pump.
The Government says retail electricity will increase 1c-2c/kwh, gas 0.9c-1.7c/GJ, coal 90c to $1.50 a 20kg bag.
HortNew Zealand say it will cost the sector an extra $40 million a year and Lincoln University says in 2013 it will cost a sheep and beef farmer $36,000 and a dairy farmer $41,000 a year.