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Australian Chamber of Commerce and Industry’s Chief of Policy and Advocacy David Alexander says the government's new climate change policy will provide a "useful framework" to meet emissions targets.

The policy will force Australia's biggest emitters to reduce carbon emissions by 4.9 per cent each year.

“There is a group of industries that will be more severely impacted,” Mr Alexander told Sky News Australia.

“The government recognises that, and it’s sought to allow them to have tailor-made solutions and a fund to allow them to adjust to a new lower-carbon world.”

“Through that transition, it’s going to be quite challenging. So that’s not to say economic growth won’t occur over coming years and decades, we expect it will, it’s just that there might be some costs during the transition to getting there.”