A few details from the Federal Government's Direct Action climate policy have been released in a new green paper, and have already been slammed by the Opposition and environmentalists.

Big companies which can not reach carbon emission targets will not be penalised in any way, rather, the government will allow “flexible compliance arrangements.”

In the latest iteration of the Direct Action proposal, companies will be made to meet individual baseline targets for carbon dioxide emissions. Also, the federal government will purchase the lowest cost carbon stashes from projects, under a reverse auction scheme.

A fixed amount of money will be set aside for buying the carbon abatements, after which it appears the government would stop it end of investment in reduction measures.

The Direct Action plan has been criticised for replacing a source of revenue with a new cost to the government, but Environment Minister Greg Hunt says the cost will be allayed by the billions saved from collapsing several clean energy, renewable energy and job creation funds.

Some business owners will be thrilled that the new policy will attempt to reduce emissions without any impact on the companies that produce them.

The Australian Industry Group has says it is “time for the real work for business and government on a final policy design that can achieve the bipartisan emissions reduction goals at least cost to the economy and without compromising competitiveness.”

Mr Hunt has detailed part of the 'flexibility' the policy hopes to offer companies who cannot reduce their harmful emissions.

“One approach that could be considered would be to set an initial transition period during which compliance action for exceeding baselines would not apply,” the Government's green paper says.

“This would enable businesses to make investments in emissions-reduction projects, potentially with support from the Emissions Reduction Fund.”

The paper says another option might be to allow a multi-year compliance period, so that a given facility could exceed its baseline in one year, provided its average emissions over the multi-year period remain below the baseline.

Both the the Ai Group and the Business Council of Australia have said they want the Productivity Commission to design the Coalition's Direct Action plan.