New Zealand is required to take an active global leadership role on the environment but must start with its own backyard first, Prime Minister Helen Clark said today.

Ms Clark is meeting with Australian Prime Minister Kevin Rudd in Auckland today at a climate change conference.

It is the first visit by Mr Rudd to New Zealand since his election.

The prime ministers met this morning before speaking at the Australia and New Zealand Climate Change and Business Conference.

Ms Clark told the conference New Zealand was required to act domestically with its own environment agenda if it expected other countries, particularly those not in the first world, to also follow suit.

New Zealand was in a very good position to take a leadership role internationally, she said.

Mr Rudd said Australia and New Zealand faced tough challenges ahead over environmental issues.

If New Zealand and Australia wanted to be effective in global environmental negotiations both countries needed to cast a close eye on the home front, he said.

Both governments worked well together on climate change issues and were natural partners, he said.

Mr Rudd said whoever won the American presidential election in November would be crucial to the worldwide environmental debate and response.

The pair are holding bilateral talks at Government House before speaking with the media at midday.