The National Party says the Government will put businesses and jobs at risk if it does not align the Emissions Trading Scheme with an Australian scheme.
The Australian government on Thursday released a Green Paper on its Carbon Pollution Reduction Scheme, which is planned to come into force in 2010.
National has withdrawn its support for legislation to enact a scheme in New Zealand, saying more time is needed to get it right.
The party's climate change spokesperson, Nick Smith, says there are significant differences between the two schemes.
But Finance Minister Michael Cullen says New Zealand and Australia's planned Emissions Trading Schemes are compatible.
He says the Australian scheme uses slightly different language, but is in essence very similar.