The Productivity Commission's siding with the Green Party.

It is recommending agriculture be phased into the emissions trading scheme, to make carbon pricing broader and more effective.

Climate change minister and Green co-leader James Shaw supports the move, but told Mike Hosking they're still waiting for a response from the Interim Climate Committee.

"There has been a presumption right since 2002, when the original Climate Change Response Act was passed, that agriculture would eventually come in when the circumstances were right so what we are asking is are the circumstances right?"

LISTEN ABOVE AS JAMES SHAW SPEAKS WITH MIKE HOSKING