Coalition changes allowing renewable energy agency to fund fossil fuel projects to be scrapped

The Albanese government will scrap changes to the Australian Renewable Energy Agency introduced in the dying days of the Morrison government that would have allowed it to fund some fossil fuel developments.

The climate change minister, Chris Bowen, will release a new set of regulations on Friday that he said would ensure Arena was focused on funding renewable energy and technology that supported it.

The Greens leader, Adam Bandt, said he was disappointed that Anthony Albanese had reportedly told News Corp that banning new Australian coal and gas mines would lead to an increase in global emissions, not decrease them.

The recasting of the rules governing Arena follows the previous emissions reduction minister, Angus Taylor, making a last-minute change before Morrison called the May federal election.

He said the new Arena rules would let it support food manufacturing and mining companies phasing out fossil fuel technologies and back new infrastructure such as electric vehicle chargers.

Guardian Australia understands the minister signalled he was prepared to strengthen the legislation by including language that would increase transparency and accountability around advice the government received from the Climate Change Authority.

Bowen indicated he would take a revised proposal to caucus next week ahead of the introduction of the legislation.

Labor has the numbers to pass the legislation in the House of Representatives, but will need the support of the Greens and ACT independent David Pocock in the Senate.

The Greens support a 75% cut in emissions by 2030, pointing to scientific advice that a 43% cut is not enough for Australia to play its part in meeting the goals of the Paris agreement. But Bandt has said the party is open to supporting the legislation if Labor is prepared to make changes to other parts of the bill.