There are huge gaps in the capability of state governments to protect threatened species and world heritage sites, severely undermining the case for devolving environmental powers to them, according to a new analysis.

The study of each state and territory government found that none of them is currently up to the job of properly protecting threatened species and ecosystems if they were handed the responsibility by the federal government.

Greg Hunt, the federal environment minister, has signed agreements with each of the states and territories to devolve environmental approvals to them. These ‘one-stop-shops’ would assess major developments such as ports and mines, with Hunt claiming the move would speed up the process and improve business confidence.

However, the analysis conducted by the Places You Love alliance, which includes environmental groups WWF, the Wilderness Society and Australian Conservation Foundation, highlights major shortfalls in the states’ ability to do the necessary work.

None of the states of territories have laws which meet the federal requirements to protect threatened species, while only South Australia references world heritage conventions in its planning laws.

Furthermore, none of the states or territories have the same list of threatened species as the federal government, with federal standards for biodiversity offsets not fully met by any of the jurisdictions. Only Victoria prohibits nuclear activity.

Independent decision makers are required only in South Australia and the Northern Territory for state-proposed projects. The lack of outside independent oversight raises concerns that the states will be assessing projects that they benefit from financially.

The devolution of powers require that the states meet federal standards before the handovers occur. Once the handover is complete, however, the states can devolve the responsibility further to local government, raising the possibility of councils having oversight of areas such as the Great Barrier Reef and Kakadu.

Kelly O’Shanassy, chief executive of the Australian Conservation Foundation, said the states are “a long way” from getting up to speed.

“The states are actually moving backwards, not forwards, on their environmental protections,” she said. “The states can’t do it on their own, that’s why we need that level of federal oversight for the really special places that Australians love.

“If these flawed one-stop-shops are set up, we’ll have coal developments and mines where they shouldn’t be, it’ll impact the Great Barrier Reef and we’ll see world heritage areas in Tasmania logged. This is a fundamental failing, a severe weakening of the protection of our natural areas.”

A spokesman for Hunt said the states will have to meet the high standards of the federal Environment Protection and Biodiversity Conservation Act and pointed out that Queensland and the ACT have made changes to ensure they meet commonwealth standards.

Officials from the federal environment department will be sent to the states to help them implement the new arrangements. The government estimates the handover will help save Australian businesses $420m a year.

The federal government is currently facing difficulties in securing support in the Senate for the handover. Earlier this week, the Palmer United party said it would block the devolution of powers, meaning the government doesn’t have the votes to pass the bill, given Labor and the Greens are also opposed to the idea.