The Business Roundtable believes that policy development on climate change entered a more constructive phase in 2009. We were critical of the previous government’s ‘carbon neutrality’ ambitions because of their enormous potential adverse economic impact; the lack of an adequate regulatory impact analysis as a basis for policy; many design features of its Emissions Trading Scheme (ETS); and the rushed process. We were pleased that the select committee reviewing the scheme abandoned the unrealistic March deadline for a report, and we believe its deliberations over a longer period contributed to a better understanding among policymakers and the public of the difficult issues New Zealand is grappling with.