Climate change is on the agenda in talks between New Zealand and Australian Prime Ministers John Key and Kevin Rudd in Sydney.
Mr Key says he is keen to ensure that the emissions trading schemes being developed by both countries are as similar as possible.
He acknowledges the emissions profiles of each country are different, meaning there are slight differences in their markets.
But he says climate change policy is just one area where the two Governments need to work closely together.
Mr Key had dinner with Mr Rudd on Sunday night at his official residence, Kirribilli House, and the two leaders are meet again on Monday morning.
