A future Coalition government would hand powers to approve major projects such as mines and ports under national environment law to the states.
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Opposition Leader Tony Abbott said in a statement the Coalition would implement a "one stop shop" for environmental approvals that would be run by state governments.
The move will outrage environmentalists who have been campaigning heavily against similar plans floated by Labor last year before it changed its mind and dumped the proposal.
Green groups point to the recent environmental record of Coalition-led state governments in Victoria, NSW and Queensland – including grazing and shooting plans for national parks – as evidence to retain Commonwealth oversight.
But industry groups such as the Business Council of Australia and the Australian Petroleum Production and Exploration Association argue federal environment laws duplicate approvals under state laws, causing costly delays to major projects.
In a joint statement with the opposition environment spokesman Greg Hunt, Mr Abbott said the Coalition would sign long-term deals with the state and territories to hand over approval powers.
"The Coalition has already held discussions with state and territory governments. The states are receptive because they also are frustrated by the delays in decision making and the lack of clarity over process," Mr Abbott said.
Mr Abbott said under the Coalition's policy, major project applications will continue to be assessed against relevant state laws, but also considered alongside federal requirements as well.
It comes as Labor cabinet rejected moves to strengthen the national environment laws earlier this month. Environment Minister Tony Burke had wanted to expand his environmental oversight of national parks, but was defeated in a counter push led by Resources Minister Gary Gray.
But Labor recently passed legislation to expand national environment laws to cover the impacts of coal seam gas projects on water.
Green groups and a coalition of Labor elders have also previously called on the Gillard government to legislate to rule out any future move to transfer approval powers to the states, which did not occur.
Greens environment spokeswoman Senator Larissa Waters said the Coalition's plan would effectively abolish national environment protection.
“Tony Abbott wants to wind back environment protection by 30 years by handing national environment law over to his state cronies to control,” she said.
“If state governments had the final say in the past, there would be oil rigs on the Great Barrier Reef, cattle grazing in the Alpine National Park and the Franklin would be dammed."
