Legislation amending the Emissions Trading Scheme has narrowly passed its third and final reading in Parliament.
The bill would keep agriculture out of the scheme indefinitely and allow polluters to import unlimited foreign carbon credits.
Climate Change Minister Tim Groser says the legislation strikes the right balance between making sure the country continues to do its fair share and ensuring that the cost of the scheme does not impact unreasonably on New Zealanders.
The Green Party says the Government has gutted the ETS. It says it was weak before - and now it is pointless.
The bill passed by 61 votes to 58, with the support of National, ACT and United Future.