Blair Comley told the Total Environment Centre's (TEC) Green Capital forum ‘Carbonomics' in Sydney on Thursday that the Government would first consult with business and industry groups as it works to set out the design of the ETS to be finalised at the end of the year and implemented by 2010.
Although it has limits on how much it can consult with industry, the Federal Department of Climate Change welcomes feedback and has an "open door policy" on consultation, Comley said.
Next the department will move to lay down the "core mechanics" of the ETS - how it would work in practice.
A cap would only be determined when the technical matters have been finalised, Comley said.
According to Comley this would be the design strategy even though industry groups have often expressed to his department the need for business to have clarity on how the cap will affect their sector sooner rather than later.
Business is anxious for clarity on the cap because it will determine the sector's limits on emissions and how emissions reduction responsibilities will be divided between industries.
