Since it was established in 2012 the CEFC has committed $9.5 billion across 220 large-scale projects and 23,700 smaller-scale transactions,driving $33 billion in new investments across the economy.

Labor’s climate spokesman Chris Bowen said at the weekend he remained opposed to the government using both Australian Renewable Energy Agency and CEFC to fund carbon capture and storage because it was diverting money away from renewable energy installations.

“I’m a pragmatist. If it can work,fine. I want fewer emissions in the air and I’m pragmatic and practical about how that’s achieved,” Mr Bowen told the ABC. “[But] the government puts too much store in carbon capture and storage,[and] uses it as an excuse to avoid reducing emissions in other ways.

The government estimates the new investment could create more than 160,000 jobs by 2030,more than half of these in regional areas.

Energy and Emissions Reduction Angus Taylor said the fund would support Australian innovators to develop their intellectual property and grow their businesses in Australia.

“It will address a gap in the Australian market,where currently small,complex,technology-focussed start-ups can be considered to be too risky to finance,” he said.

He said the government would introduce legislation to establish the fund in this term of Parliament and he believed it would earn a positive return for taxpayers.

Labor leader Anthony Albanese said on Tuesday the government had been “shaken by reality”.

“This is a government that isn’t up to the task of governing Australia in this century,” Mr Albanese said. “And Scott Morrison is frozen in time while the world warms around him and where people actually uptake new technology.”

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