The environment minister will still be responsible for approving projects under new federal nature laws, after Labor rebuffed calls for a completely independent watchdog with full decision-making powers.

The retention of ministerial decision-making powers satisfies a key demand from the Coalition and industry and is not opposed by the Greens.

But it has been criticised by environmentalists, who argue the model could allow developers to exert pressure on the minister.

The environment minister, Murray Watt, set out on Sunday the powers of the environment protection agency, under a bill to rewrite the Environment Protection and Biodiversity Conservation (EPBC) Act due in parliament this week.

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Watt’s hopes of passing the laws before Christmas were dealt a b

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