“Labor created the CEFC and has consistently protected its integrity,” Mr Bowen said on Wednesday, after he last week replaced colleague Mark Butler after seven years in the portfolio.

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“We’ll be putting forward sensible amendments to ensure the CEFC won’t be turned into a slush fund, and can only invest in economically viable, clean energy projects.

“If the government is able to move past its paralysing internal climate wars and accept these amendments, we will support the bill.”

Labor also wants to scrap proposed ministerial powers to advise the CEFC to look at investing in particular technologies and ensure all investments had to generate a rate of return.

Opposition Leader Anthony Albanese last week bowed to pressure from the right flank of his caucus by moving Mr Butler, a close factional ally, out of the contentious climate change portfolio. Mr Bowen has promised to bring a sharper economic perspective to the issue.

Federal Energy Minister Angus Taylor said it was a “good first test” for Labor’s new approach to climate and energy policy under its new spokesman.

He has accused Labor of being disingenuous and spreading “misinformation” about the changes, suggesting the former Labor government had previously funded gas projections when managing the fund

Mr Taylor said projects in the fund’s pipeline could reach financial close as soon as this month, which would mean construction jobs and spending in regional communities recovering from the pandemic.

“If Labor opposes the bill as they said they would, it will show again that Albanese’s words are hollow and he can’t be trusted to deliver affordable, reliable energy and new jobs,” Mr Taylor said.

“They will be voting against more investment, more renewables, more jobs, and lower prices for consumers.”

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He said the policy was a “serious” commitment to supporting record levels of energy investment, and delivering lower energy prices.

“This is central to our ongoing economic recovery and will support jobs, productivity and economic growth.”

The CEFC was created in 2012 under a deal between Labor, the Greens and independents with a mandate to invest in renewable energy, low-emissions technology and energy-efficiency projects that would deliver a return.

It has identified a pipeline of seven projects that could be supported through the $1 billion Grid Reliability Fund – if the legislation is passed by Parliament.

It estimated investment value of the project pipeline is $4.5 billion and would create at least 1000 jobs, mainly in construction.

The projects are distributed across South Australia, New South Wales, Victoria and Queensland. Projects in the pipeline include pumped hydro and multiple battery storage projects, new transmission and interconnectors, as well as a renewable energy zone.