The Environment Ministry has warned the Government against listening to business interests seeking favourable treatment under an amended emissions trading scheme (ETS).
The Government has put the ETS on hold while it conducts a review of climate change policy.
The review will look at all available options, including a carbon tax, but Prime Minister John Key has said he wants an amended ETS - that is softer on internationally competing businesses - in place by September 30 next year.
But in a briefing to the incoming Government, Environment Ministry officials warned of the risks in trying to cater to businesses' demands.
"There are a number of areas in the NZ ETS implementation process where there will be pressure to complicate the ongoing design of the NZ ETS.
"This is understandable; firms will want the design to reflect their particular circumstance as much as possible.
"The NZ ETS, however, should be as simple as possible. This is critical to build in as much clarity and workability to the processes going forward."
The Government yesterday released the terms of reference for its review.
They include:
* consider the risks around climate change projections;
* looking at the merits of mitigation versus adaptation to a warmer climate;
* looking at the merits of an ETS, as opposed to a carbon tax;
* hearing views how New Zealand's climate change stance could affect its international relations;
* requiring a comprehensive regulatory cost-benefit analysis;
* considering the impact of policy on households in light of the weak economy, New Zealand's international competitiveness and the actions of competing countries;
* considering the case for increased climate change research;
* considering the need for additional regulations if an ETS is retained;
* considering the timing of implementation.
