The second bill will set out the policy by which the Government intends to meet the commitments that New Zealand undertakes by ratifying the Kyoto protocol.
It will reflect politically difficult decisions about how much of the burden will fall on which sectors.
The role of different policy instruments - emissions trading, a carbon tax, levies and voluntary negotiated agreements with major emitters - and how the initial stock of carbon credits will be allocated will also have to be decided.
Preliminary consultations with sector representatives have already occurred and more take place soon.
There would be a second round of consultation on the Government's preferred policy package next year. "The second bill would be introduced when practicable following that, with the expectation that it would be passed in 2003," Mr Hodgson said.
nzherald.co.nz/climate
Intergovernmental Panel on Climate Change (IPCC)
United Nations Environment Program
World Meteorological Organisation
Framework Convention on Climate Change
Executive summary: Climate change impacts on NZ
IPCC Summary: Climate Change 2001