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New Zealand Emissions Trade Scheme (ETS) may face further delays as Australia puts off the start date of its related legislation.
Prime Minister John Key told reporters it made sense for the New Zealand and Australian schemes to be aligned.
Australia announced a one-year delay until July 2011 and major changes to its carbon trading plans on Monday.
Lacking the political backing to implement a cap-and-trade scheme more quickly, Prime Minister Kevin Rudd said he still aimed to push laws through parliament this year.
Key said Australia had not informed him of the decision to delay.
New Zealand's ETS was designed by the previous government and passed just before the election.
The National government put it on hold and is reviewing it through a special select committee.
"I wouldn't say it's (a delay is) inevitable," Key said.
"But I have made it clear that I think it makes a lot of sense for New Zealand to be as closely aligned to Australia as is practically possible, simply because we are trying to bring the two markets together through a single economic market and CER, and to be driving them apart because of differences in climate change policy doesn't make a lot of sense to me."
Under the legislation, Key pointed out, the starting date for stationary energy - that is emissions from electricity generation and from fuels used in manufacturing, construction and commercial sectors - was 2010.
"The legislation is on the books, so if there was to be no change in the legislation then the demands or requirements `a la' stationary energy coming in in 2010 would begin, that is going to be something for that committee to consider."
Asked if Australia shared New Zealand's desire to align schemes, given the lack of consultation regarding the delay, Key said Rudd did think it a good idea, but he faced domestic challenges.
"When I had discussions with Kevin Rudd right back in January he made it clear there may be some challenges in passing it this year, they weren't sure at this point."
Key said alignment was not a "die in the ditch" issue and if New Zealand had to, it could go ahead but he was concerned that running significantly different schemes may pose problems for businesses.
"I don't think it would make sense for New Zealand businesses to pack up and move across the Tasman or vice versa simply based on climate change policy."
Under the ETS, limits on greenhouse gas emissions would be imposed on all sectors of the economy. Not all sectors would come under the ETS at the same time.
Those that exceeded their limits would have to buy carbon credits from those under their caps.
Labour leader Phil Goff said National would use Australia's position as an excuse for further delay, when certainty was needed. The forestry sector, which had already lost money and jobs, needed certainty, he said.
"We need certainty around the changes that are being made. We have uncertainty because of a political dispute between ACT and the National Party," he said.
He said there were many areas where New Zealand and Australian legislation did not align.
"We have a different situation, obviously agriculture is a much bigger proportion of our emissions than they are in Australia, therefore we need to approach them in different way."
As a former trade minister Goff said New Zealand would suffer if it did hold up strong environmental credentials.
