By Zac de Silva, Grace Crivellaro and Tess Ikonomou in Canberra

Once-in-a-generation reforms aimed at better protecting the environment and speeding up planning approvals will pass parliament after a last-minute compromise, but there are fears the resources and native forestry industries will suffer.

The overhaul of Australia’s environment laws is expected to be waved through the Senate after Environment Minister Murray Watt struck a deal with the Greens late on Wednesday.

Prime Minister Anthony Albanese described the laws as a “win-win” which would clarify the current regulations.

“I describe this as a great win for the environment and a great win for business,” he told reporters in Canberra.

The changes will create a National Environment Protection Agency, charged with enforcing nature-protection rules, which is set to start operating from July 2026.

Penalties will be toughened for major breaches of environment laws, land clearing and native forest logging will no longer be exempt from the federal regulations.

Approvals will be fast-tracked for some major projects, while in a concession to the logging industry, the government will establish a $300 million fund to support forestry jobs.

Companies will also need to disclose the greenhouse gas emissions expected from projects when they submit them for approval.

Environment groups broadly welcomed the deal, although some argued it doesn’t do enough to reduce Australia’s carbon pollution levels.

The opposition, which had also been in talks with the government over the laws, slammed the deal, claiming it would make life harder for the logging and resources sectors.

Opposition resources spokeswoman Susan McDonald said it was a “dark day” for primary producers across the nation.

“We will see Australian jobs, Australian taxes and Australian prosperity offshored to other countries,” she told reporters.

The gas industry echoed that criticism, describing the deal as a short-sighted political compromise which would drive up energy prices and deter investment.

“By conceding to the Greens, the government has chosen more red tape and uncertainty instead of enabling new gas supply,” Australian Energy Producers chief executive Samantha McCulloch said in a statement.

The lobby group is particularly concerned about a move to prevent fossil fuel projects accessing fast-tracked approvals.

Opposition Leader Sussan Ley said her colleagues had been negotiating with the government until late on Wednesday night to try and get an agreement.

“In my view, the Labor Party never wanted to do any deal with us,” Ms Ley said.

Mr Albanese said the coalition’s demands kept changing and it was impossible to strike a compromise.

Greens leader Larissa Waters said her party didn’t get everything it wanted during the talks but she was proud of what it had achieved.

“The Greens are determined to get shit done,” she told reporters after the deal was announced.

“What we’ve been able to secure from the government, after strong and lengthy negotiations, is a package that improves our environmental laws.”

Parliament is scheduled to rise on Thursday but may need to sit briefly on Friday morning to wave the laws through.

Debate has been guillotined to ensure the laws are given the green light before politicians return home for the summer break.