Declan Clausen, a member of Newcastle City Council’s environment committee, said he was disappointed to see the Australian Renewable Energy Agency abolished.

‘‘It’s very disappointing to see the stance of the government on renewables, especially when we need to have investment in those areas so we can transition to a sustainable low-carbon economy,’’ Mr Clausen said.

The Australian Renewable Energy Agency was created to fund renewable projects and drive research and investment, particularly into new technologies.

Over the next eight years $1billion will be retained to support ‘‘priority projects’’ already under way. That will be ‘‘like putting the handbrake on but it’s not going to stop the car,’’ Mr Clausen said.

The government also announced $460million in savings over three years by trimming the Carbon Capture and Storage program.