Business New Zealand welcomes the Climate Change Response (Moderated Emissions Trading) Amendment Bill as another step towards securing a more workable and measured introduction of carbon pricing into the economy.

The business community has been concerned about the possibility of exposing business to competition from countries that do not price carbon, resulting in sending jobs offshore that will be hard to get back.

Chief Executive Phil O'Reilly says he's glad the Government has been listening to the needs of business and consumers.

"The Bill retains a clear carbon price signal to businesses and to consumers to buy low carbon goods and services. It will help create a fairer balance between consumers, taxpayers and businesses.

"It's in the best interests of all of New Zealand to protect our productive sector, and avoid exposing business to costs earlier than our trade competitors.

"There's no need to try and predict the costs of compensating businesses for decades into the future. Widespread international action will reduce the need for compensation. Besides, if compensation is still needed beyond 2020, it would indicate that the global battle to address climate change had failed, and it would be futile to continue with carbon pricing at all.

"The Bill seeks to protect businesses while the picture of progress on reaching a global agreement to address climate change, and the actions of our trade-competitors, becomes clearer. This is appropriate.

"It's also important to make sure SMEs exposed to international competition are included in this protection. Low carbon, but high energy intensive firms will face higher costs that will place them at a competitive disadvantage.

"I'm hopeful that this will now move forward, and we look forward to working with the select committee to iron out the details," Mr O'Reilly said.