Thousands of jobs could be created in Queensland if 10 large-scale solar projects were to receive funding, according to analysis by the Australian Conservation Foundation.

The projects, earmarked for funding by the Australian Renewable Energy Agency (Arena), would create around 2,695 jobs according to the study.

The figure compared favourably with the 1,400 jobs which the Indian conglomerate Adani estimates its $16bn Carmichael coalmine would bring to the state if it obtains approval for the controversial project, the study claimed.

However, the findings comes as Arena faces defunding by the federal government, placing the projects in jeopardy.

Parliament is preparing to debate an omnibus bill introduced by the Turnbull government to push through budget savings that include a $1bn cut to Arena.

It would leave Arena with about $300m left to spend, including $100m earmarked for major solar projects, which would have a combined capacity of 200MW.

Arena has narrowed down a shortlist of 20 large-scale solar projects it might fund, including 10 projects in Queensland. It was likely to end up funding between three and five such projects.

ACF estimated these projects could create about 6.35 jobs per megawatt of capacity, and concluded that the 10 Queensland projects would together create 2,695 jobs.

“The Turnbull government proposal to cut Arena’s budget and remove its grant making function would stifle innovative clean energy projects and jobs,” said Kelly O’Shanassy, chief executive of ACF.

She said the majority of the 10 projects being considered by Arena might never get built if the cuts went through.

“In contrast, Adani’s proposed Carmichael coalmine would employ an estimated 1,400 people while creating 4.7bn tonnes of climate pollution over the mine’s lifetime and threatening the 70,000 jobs that rely on a healthy Great Barrier Reef,” she said.

In March the government announced the cut to Arena, which would essentially defund the agency. But it combined the announcement with the revelation it was no longer seeking to abolish the Clean Energy Finance Corporation (CEFC), and it was taking some CEFC money, and using it to create a new Clean Energy Innovation Fund.

Environmental groups praised the government for its decision to retain the CEFC, but most were relatively muted about their concerns about the Arena cuts.

Mark Butler, shadow climate and energy minister – and then shadow environment minster – said shortly after that the party was not willing to fight to save the agency if environment groups weren’t going to support it.

“I don’t really understand why Labor interpreted it that way,” O’Shanassy said. “There’s a lot of spin going on in climate change and renewable energy in Australia.”

When the Coalition announced the move, ACF sent out a press release that welcomed the decision to keep the CEFC, and said it was disappointed by the cut to Arena, which “potentially undermines Arena’s role”.

“The facts are you need to fund renewable energy and shift government funding away from polluting energy like coal. And the environment movement has been supporting that for many many years. And any serious politician in the 21st century should be serious about shifting money to the future and the future is renewables.”

ACF is waiting for a verdict in its federal court challenge to the federal government’s approval of the Carmichael mine. In court case ACF argued the minister’s approval was inconsistent with the Australian government’s international obligations to protect the world heritage-listed Great Barrier Reef.

The minister argued that there was no definite link between the emissions from the mine and an increase in global temperatures.