A report into the economic impact of the emissions trading scheme raises huge difficulties of bringing agriculture into the scheme, says Climate Change Minister Nick Smith.
A report by economic consultancies NZIER and Infometrics recommends that a modified scheme should exclude agriculture until measuring the sector's emissions becomes economic.
The scheme was passed into law by the previous government, but is under review as part of an agreement between National and ACT.
The Environment Ministry-commissioned report was provided to a review committee as part of its terms of reference.
Dr Smith says decisions about if or when agriculture joins the scheme will not be made until the committee has formally completed its review.
