Prime Minister Tony Abbott
Prime Minister Tony Abbott Vicki Wood

NSW signs up for Abbott's environment one-stop-shop

A SECOND state government has signed on for the Abbott government's environmental approvals "one-stop shop", with New South Wales joining Queensland in the venture.

The deal was announced in a statement from Prime Minister Tony Abbott's office released on Tuesday.

It confirmed the NSW Government had signed a memorandum of understanding to hand over federal environmental approval powers to the state.

Mr Abbott's statement said the government expected every state and territory to sign on to the arrangements within 12 months, in an effort to eradicate "green tape".

The move comes after significant pressure from business interests for the Coalition to hand over approval powers, and will likely anger environmentalists.

It will see the Commonwealth environmental assessment process for mines and other significant infrastructure handed over to state governments in both NSW and Queensland.

The statement said the "same strict environmental standards" would apply, despite concerns about how state governments would enforce the Commonwealth laws.