The Ministry for the Environment has advised the Government not to soften or delay the Emissions Trading Scheme, despite concerns raised by business.
The Government is under pressure from the farming and business lobbies to reduce the costs of emissions trading, or abandon the scheme altogether.
But in advice issued to Radio New Zealand under the Official Information Act, the ministry says the initial cost impact of the scheme on the economy and individual businesses will be low.
Environment Minister Nick Smith says that under the Kyoto Protocol, there is a cost to New Zealand for emissions.
He says it is better that the cost falls on the emitters, who can do something about the amount they emit, rather than have taxpayers pick up the bill.