Prime Minister Anthony Albanese has dumped – for the second time – the government’s controversial “Nature Positive” legislation, which had run into strong opposition from the Western Australian Labor government.

Albanese, speaking on The Conversation’s Politics podcast ahead of a fortnight parliamentary sitting starting next week, said there was not enough support for the legislation, which had been on the draft list of bills for next week, circulated by the government.

This is the second time the Prime Minister has pulled back from the legislation. Late last year he also said it did not have enough support, despite Environment Minister Tanya Plibersek believing she had a deal with the Greens and crossbench for its passage.

The legislation would set up a federal Environment Protection Agency, which has riled miners who claim it would add to bureaucracy and delay approvals.

In recent days WA premier Roger Cook, who was instrumental in heading off the legislation last year, has been lobbying the federal government again. WA faces an election on March 8.

In an interview on Saturday, Albanese told The Conversation: “I can’t see that it has a path to success. So at this stage, I can say that we won’t be proceeding with it this term. There simply isn’t a [Senate] majority, as there wasn’t last year.

"The Greens Party on one hand have changed their views”, making another demand during the week, he said. While the Liberals – who began the review of the present Environment Protection Act – “have chosen an obstructionist path,” he said.

Albanese said the government would continue to discuss the issue with stakeholders in the next term of parliament.

“Does the environment and protection act need revision from where it was last century? Quite clearly it does. Everyone says that that’s the case. It’s a matter of working to, in a practical way, a commonsense reform that delivers something that supports industry.

"I want to see faster approvals. We in fact have speeded up approvals substantially.

"But we also want proper sustainability as well.”

Albanese also flagged the government might cut back its legislation to reform rules covering electoral donations and spending in order to get a deal to pass it.

Special Minister of State Don Farrell and the Liberals had been on the brink of a deal in the final week of parliament last year, but negotiations imploded at the eleventh hour.

Albanese told The Conversation he hoped the legislation could still be passed. “I spoke with [Farrell] today, he is consulting with people across the parliament.

"What I would say is that we are looking to get reform through. Now whether that is a bigger, broader reform or whether it needs to be narrowed down, we’ll wait and see.

"But we’re very serious about the reform which would lower the donation declarations, that would put a cap on donations, a cap on expenditure, that would lead to more transparency as well. It’s an important part of supporting our democracy.

"We see overseas and we’ve seen people like Clive Palmer here spend over $100 million on a campaign. That’s a distortion of democracy – if one person can spend that much money to try to influence an election and we don’t find out all of that information till much later on.”

The reforms would not start operating until the next term of parliament.

Albanese said he thought the reform would have “overwhelming support” with the public “and I hope that it receives overwhelming support in the Senate as well”.