The approval last week by Brazil’s Congress of a bill that weakens environmental safeguards for mining, infrastructure and agricultural projects has raised concerns at home and abroad that the new regulation could result in more industrial pollution, deforestation and fossil fuel exploration.
Ahead of the COP30 UN climate summit Brazil will host in the Amazon city of Belém in November, the new bill is seen by activists as undermining the country’s green credentials, following a government auction of 34 oil and gas exploration blocks last month, some offshore in the mouth of the Amazon River.
Business backers argue that streamlining environmental licensing is necessary for Brazil to gain more benefit from the critical raw materials it has – like lithium – which are in growing demand for the clean energy transition.
IBRAM, Brazil’s mining industry association, said in a statement that the legal reform would “allow Brazil to unlock infrastructure investments, as well as advance as a global player in mineral production and exports, within a net-zero scenario and as a leader in the energy transition agenda”. Representatives of the agribusiness, energy and infrastructure sectors have also publicly supported the bill with similar arguments.
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But opposition is mounting, with scientific organisations, environmental NGOs, Indigenous associations, and some of Brazil’s most influential artists – including popstar Anitta – speaking out against what many are calling “the devastation bill”.
“Reducing environmental protection mechanisms will condemn Brazil and its future generations to an even more critical scenario of lost resilience and missed opportunities for sustainable development,” the Brazilian Society for the Advancement of Science (SBPC) warned in a letter sent to lawmakers on July 14.
Separately, a report published this month by Brazilian researchers from the University of São Paulo and the Federal University of Ouro Preto suggested faster licensing could “cause significant environmental degradation”, exposing projects to sanctions, investigations and legal action.
What is the “devastation bill”?
The bill, approved by the Senate in May and then by the Brazilian Chamber of Deputies last Thursday night, dismantles key protections built into the federal environmental licensing system. It replaces the current three-step process with a simple self-declaratory document for infrastructure and farming projects classified as low or medium impact.
The bill was approved with a large majority (267 votes in favour and 116 against), and was championed by a powerful rural caucus, the largest bloc in Congress. Brazil’s agribusiness bloc supports large-scale farming and often opposes environmental protections and Indigenous rights. Many in the sector backed former far-right President Jair Bolsonaro, with some investigated after he lost the 2022 election for possibly funding activities related to an alleged coup plot.
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Another significant change under the draft bill is that states, not Ibama – Brazil’s environmental agency – would license most projects, sidelining the country’s most experienced environmental regulator. Experts fear this could create competition among states for the most flexible licensing rules. Each state will now decide for itself what projects qualify as low, medium, or high environmental impact.
The bill had languished in Congress for 21 years until recently when the agribusiness bloc gained lawmaking power – and one of its most consequential provisions was introduced just two months ago by the Senate president, Davi Alcolumbre, from Amapá state.
A strong advocate of oil exploration at the mouth of the Amazon River, Alcolumbre created a “Special Environmental Licence”, a single document granting full authorisation for public projects deemed a government priority – like roads or oil drilling by state firm Petrobras – even if they risk major environmental damage. It would unlikely apply to the recently auctioned oil and gas exploration blocks in the Amazon as they were sold off to private companies.
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President Luiz Inácio Lula da Silva still has the power to veto the bill, and many expect he will do so in an attempt to protect his international image from a green backlash. He is expected to either veto or sign the bill within the next two weeks.
But in Brasília, it is widely expected that Congress would override any presidential veto, given the overwhelming support the bill enjoys. If this happens, environmental groups and lawmakers could then challenge the bill in Brazil’s Supreme Court, arguing it is unconstitutional.
Risk to Brazil’s international reputation
Even as the agribusiness sector fears the fallout from the 50% tariffs US President Donald Trump plans to impose on Brazilian exports from August, its political representatives have reignited tensions with the European market by backing the new bill.
European Parliament member Anna Cavazzini said it would “undermine Brazil’s leading role in the fight against climate change, right before it hosts the international climate conference in Belém, in Pará state.”
In a statement sent to Brazilian media, green MEP Cavazzini added that the European Union’s anti-deforestation legislation – which requires commodity traders to certify their products as deforestation-free – could become “more important than ever before”.
In an interview with Climate Home News, constitutional lawyer and former federal deputy Fábio Feldmann said the Brazilian bill dismantling national regulations goes against the global financial trend of requiring stronger environmental safeguards for infrastructure projects.
“International conventions require environmental assessments as conditions for most loans from multilateral agencies. This won’t be undone by the new law. Who will fund infrastructure that doesn’t meet international standards?” asked Feldmann, author of Brazil’s first environmental licensing law.
Eric Pedersen, head of responsible investments at Nordea Asset Management, told Climate Home he had reduced holdings of Brazil’s sovereign debt due to environmental concerns – and warned the new bill could affect other international investors.
“Should this law actually take effect, the weight of having to prove their sustainability credentials will be much heavier on Brazilian companies, and investment into the country could suffer,” Pedersen said.
