This paper contributes to the debate on how New Zealand should meet commitments under the Framework Convention on Climate Change (FCCC) to mitigate greenhouse gas emissions. It is a technical paper, setting out how a carbon charge could be implemented, if the Government were to decide to do so. The release of the paper should not be read as a commitment by the Government to the introduction of a carbon charge as it has decided to defer until early 1998 a decision on whether a low-level carbon charge or some other method of reducing greenhouse gas emissions should be introduced. There are a number of options available to New Zealand to meet our climate change commitments. A carbon charge is only one of them. The Government remains committed to voluntary agreements by industry to reduce emissions in the meantime.