Joe Hockey the invisible man had called on the university to reconsider its decision to jettison investment in seven companies

The government has been accused of bullying the Australian National University, after Joe Hockey criticised it for divesting from a number of fossil fuel companies.

“I would suggest they’re removed from the reality of what is helping to drive the Australian economy and create more employment,” Hockey told the Australian Financial Review.

Tim Buckley, former head of equity research at Citigroup and now head of the Institute of Energy Economics and Financial Analysis, said ANU was being “bullied” by the government over its stance.

“I find it absolutely bizarre because, the last time I checked, investment managers have the right to change their portfolios,” he told Guardian Australia.

“I can’t fathom why Australian politics has stooped as low as this. Joe Hockey should really be concentrating on his day job and try to pass his budget.

“The fossil fuel industry may be trying to desperately to put its fingers in the leaking dyke left, right and centre, but that won’t change the fact that Australia will have to face up to a future as a low-carbon economy.”

Sydney University has ruled out future investments in coalmining, while the Bendigo and Adelaide Bank has said it will not lend to firms involved in thermal coal and coal seam gas. Last week, the Anglican diocese of Perth joined the Uniting Church in Australia in divesting itself of fossil fuels.

The viability of new coalmining projects in Australia has been questioned due to a depressed trading price and indicators that key markets are beginning to wean themselves off imported fossil fuels.

Last week China, the destination for 25% of Australia’s coal exports, imposed a 6% tariff on non-coking coal. The country is also introducing new standards to phase out imported “dirty” coal, which is blamed for causing the smog that regularly envelops cities such as Beijing.

Last year, China spent an estimated $US56.3bn on wind, solar and other renewable energy projects.

Investment in clean energy in Australia has slumped by 70% in the past year, due to uncertainty over the future of the Renewable Energy Target. Hockey has previously called wind turbines “utterly offensive” and “appalling”.