The Morrison government is struggling to contain an internal dispute over coal-fired power after MPs escalated their calls for financial aid for new projects, sparking fears of a backlash from southern voters who want action on climate change.

The policy gulf is being blamed for the government delay in deciding support for a shortlist of new projects, tipped to include the expansion of gas and coal power stations in Queensland.

With climate change looming as an issue at the federal election in May, former prime minister Tony Abbott on Friday abandoned his call to withdraw from the Paris agreement to reduce carbon emissions, falling in to line with Prime Minister Scott Morrison on the key policy.

But Mr Abbott signalled the support within the Coalition for new coal projects by suggesting the federal government’s Snowy Hydro power company should invest in new coal-fired generators as well as its hydro-electric scheme.