KEY POINTS:
The Government should move swiftly to get an Australasian emissions trading regime on the agenda for transtasman single economic market talks.
So far, New Zealand does not really register on new Prime Minister Kevin Rudd's radar screen - no matter the wittering on this side of the ditch from NZ Labour, which claims a strong fraternal linkage with Australian Labor.
Finance Minister Michael Cullen and former Australian Treasurer Peter Costello have successfully led joint initiatives to harmonise securities and competition regimes across the two countries.
An investment platform has been under discussion - but was not signed off before Saturday's election. And New Zealand's connectivity with Australia has been strengthened.
There is a danger that without a significant, rapid diplomatic initiative from the New Zealand side, the considerable policy initiatives that have been in front of ministerial negotiators will simply stall.
In reality, Helen Clark's Government has been more closely aligned with British Labour in the past decade following Tony Blair's success in throwing out the Tories.
Partially this is because both Labour parties were in Government - whereas Australian Labor was in its political wilderness period. But it's worth remembering that while it's been nearly two decades since NZ Labour and Australian Labor last crossed over in Government, relations then were far from cosy.
Rudd is vastly different from his predecessors as Labor PMs - Paul Keating and Bob Hawke.
He is a policy wonk, a technocrat and incrementalist in approach. But just because he shares some of those traits with Clark, it does not mean he will be quick to embrace New Zealand in the manner of John Howard's Government. Howard's Ministers had a paternalistic view of New Zealand.
The Howard Government believed New Zealand was too small on its own to make its way significantly in the world. By being part of a bigger Australasian market the NZ economy would be stronger, as would Australia's.
Costello and former Foreign Minister Alexander Downer worked well with their NZ counterparts to get the Australian New Zealand Leadership Forum off the ground.
This meeting of political, bureaucratic, business and community leaders has developed significant networks since its inception three years ago. But it has not grabbed the big picture-focused Rudd in a big way.
That opportunity is there now.
Rudd wants to make quick political hay from his decision to ratify the Kyoto Protocol and lead Australia to the United Nations Climate Summit in Bali next month.
He's pledged Australia will cut carbon emissions by 60 per cent of 2000 levels by 2050 and signalled total green pledges worth A$5 billion ($5.8 billion), including A$500 million on renewable energy research and A$200 million on a Great Barrier Reef rescue plan.
He was due to outline these strategies - among others - at this year's Australia New Zealand Leadership Forum in Sydney but pulled out shortly before the forum to make his United States first visit as Australian opposition leader.
Rudd used that meeting to quash any potential fears on the US side that he might make an abrupt withdrawal of Australian troops from Iraq. Combat troops will come home - but it will be on an agreed process with Washington.
Rudd - unlike the unfortunate Mark Latham - is a known and trusted figure in Washington where politicians on both sides see his commitment to the US alliance as genuine.
What Clark and Rudd do share however is a sense of moral responsibility on climate change.
Rudd's seven-point framework includes possible establishment of an office of climate change within the prime minister's department.
But Rudd's policy is more pragmatic.
A national emissions trading scheme, clean coal technology, mandatory renewable and energy efficiency targets, a framework for corporate and community responsibility, climate diplomacy and the adequacy of Australian national institutional arrangements are the main parts of his strategy.
He also wants Australia to help China through a joint initiative. Rudd's diplomatic background will help him brand Australia in the climate change space.
But New Zealand will also gain if we can link both countries together in one climate change market.
The European Union has run an emissions trading scheme since 2005.
While New Zealand will soon introduce legislation on this score, the emissions trading scheme would work better if it was part of a bigger more diverse trading market.
Putting New Zealand and Australia together - and introducing common emissions reduction targets for individual industries - would ensure businesses faced similar environments on both sides of the Tasman.
If we can do it for securities trading why not emissions?
