A plan to manufacture more things in Australia using clean energy and local resources has cleared an early hurdle but major obstacles remain.
The Albanese government's proposed $22 billion investment in clean industry has passed the House of Representatives.
The policy would allow the government to identify and directly invest in major protects considered to be in the national interest.
Green hydrogen, critical minerals and clean manufacturing industries would be among the winners.
The scheme would allow Australia to benefit from the transition to net-zero emissions, Treasurer Jim Chalmers said.
"These bills are all about helping to make Australia a renewable energy superpower," he told parliament on Monday.
"Making our future here in Australia is about making the most of our nation's potential and making sure everyone shares in the benefits."
Treasurer Jim Chalmers wants Australia to become a clean energy 'superpower'. (Lukas Coch/AAP PHOTOS)
The policy sailed through the Labor-controlled lower house but faces a tougher time in the Senate.
Coalition senators have dismissed the manufacturing plan as a sweetheart deal for unions.
"The laws are a highly flawed, incoherent and ineffective policy proposal, which risks entrenching union involvement in government-funded projects and businesses," they said.
"Putting such vague principles in primary legislation will have the effect of establishing government-funded and mandated compulsory unionism by stealth."
With the coalition firmly opposed, the Albanese government needs the Greens' support.
But the minor party has raised its own concerns, calling for a guarantee no coal and gas projects will benefit.
Labor and the Greens remain locked in negotiations.