The Albanese government will confirm it wants to establish a federal environmental protection agency next year, opening up another potential flashpoint with businesses that worry the new body could complicate critical project developments and worsen state and federal duplication.

Environment Minister Tanya Plibersek will on Thursday reveal the plan as part of a detailed response to the 2020 review of the Environment Protection and Biodiversity Conservation Act by Graeme Samuels, who found governments had failed to protect vulnerable habitats and endangered animals.