Climate Change Minister Nick Smith says the emissions trading scheme should solve the problems of carbon marketing.
Earlier this week, the Commerce Commission cleared Meridian Energy of a complaint by Dr Smith that it was falsely claiming its power as 'carbon neutral'.
The complaint came when the Minister was in opposition, but Dr Smith says problems remain with the claims companies make in a largely unregulated area.
Dr Smith says the Emissions Trading Scheme will kill the voluntary carbon market, where most of the problems are, when it properly begins.
Meanwuile, he says companies like Meridian need to be more cautious so the public is not misled. He will move to regulate the area if consumers are misled.