His move was also a political wedge for Labor,which is gripped by internal division between its left faction,which is generally opposed to funding for any fossil fuels,and right-wing members who want the party to appeal more to blue collar workers with support for legacy energy industries.
Mr Taylor greeted the defeat by blaming Labor for preventing ARENA from backing technologies that could lower emissions.
“Labor have shown their true colours – opposing investment in new clean technologies which will create jobs and economic opportunities,” he said.
Greens leader Adam Bandt said the defeat of the ARENA remit expansion was a “massive blow” to the government.
“First the Liberals tried to abolish ARENA and then redirect its funds to coal and gas,but by backing the Greens motion,the Senate has just saved ARENA,” Mr Bandt said.
“Public money should go to schools and hospitals,not coal and gas.”
The Greens and environmental groups opposed the changes on the grounds that it would direct money to schemes using carbon capture and storage and therefore support coal and gas.
Mr Taylor’s office rejected this argument,saying the money would be spent on new technology and not on coal projects.
Labor and the Greens gained support from Jacquie Lambie and South Australian independent Rex Patrick to gain 28 votes at 8.30pm on Tuesday. The Coalition gained support from One Nation Senator Malcolm Roberts but not the party’s leader,Pauline Hanson,and only gained 27 votes.
The government’s leader in the Senate,Simon Birmingham,was in meetings and absent from the vote but was paired with a Labor Senator to even the tally,a standard practice in the upper house. South Australian Senator Stirling Griff was absent for personal reasons but also paired.
There is uncertainty about whether Senator Hanson was paired.
“Pauline Hanson was not accidentally not there,” said one Liberal. “She chose not to come down.”
It is common for federal laws to give powers to ministers to make rules by regulations. The rules are often “disallowable instruments” that can be struck down by a motion in either chamber of Parliament.
Labor could not get the numbers to disallow the regulations in the House of Representatives,but the attempt alongside the Greens succeeded in the Senate.
Loading
Australian Conservation Foundation climate change campaigner Suzanne Harter criticised the government plan last week by saying Mr Taylor was trying to rewrite the rules at ARENA to suit a “gas-led agenda” at the government.
“Angus Taylor is attempting to turn the Australian Renewable Energy Agency into something that was never contemplated when ARENA was created,” she said.
But the Minerals Council of Australia backed the changes on the grounds they would encourage research and development into carbon capture and storage,hydrogen,improved soil carbon measurement and emission reduction technologies.
“All technologies should be considered to meet the twin challenges of lowering greenhouse gas emissions while meeting increasing demand for Australian resources,” it said.