Australia's plan to change its carbon tax plan so it can link to Europe's emissions trading scheme from 2015 could pave the way for a trans-Tasman scheme.
Until now New Zealand's emissions trading scheme has been incompatible with Australia's carbon tax.
Climate Change Minister Tim Groser says the changes Australia intends making will help moves towards being able to trade carbon emission units across the Tasman.
"What we're trying to do during this transition to a long term framework that's to be applicable from 2020 is gradually link up carbon markets around the world.
"But there's still some fundamental problems here during this transition. First of all, we cant link with a carbon tax until they move to a trading scheme."
Mr Groser says the current situation will not change until at least 2015.
