The Government is banning some international emissions units from New Zealand's Emissions Trading Scheme.
The forest industry is among those who have called for the Government to end its open access policy for all carbon units, to protect the integrity of the ETS.
Climate Change Minister Nick Smith has announced the Government won't allow trading of units generated from industrial gas destruction projects involving HFC-23 and N2O because it's concerned that they create perverse incentives that may not benefit the environment.
He says Australia and the European Union are taking the same action and New Zealand needs to follow suit to avoid becoming a dumping ground for units of questionable environmental benefit.