Brazil’s parliament approved a bill on Thursday that relaxes environmental licensing regulations, potentially undermining President Luiz Inacio Lula da Silva’s efforts to enhance Brazil’s environmental reputation ahead of the upcoming United Nations climate summit, COP30. The bill received significant support in parliament, particularly from the influential agri-business caucus, despite facing criticism from environmentalists, members of Lula’s administration, and European Union lawmakers who urged the lower house speaker not to push the bill for a vote.
In a vote in the lower house, the bill garnered 267 votes in favor and 116 against. While Brazilian business leaders have argued that environmental permits hinder development, many environmentalists believe that the bill’s approach could do more harm than good, leading Brazil to diverge from international standards.
The bill relaxes several requirements for permits, allowing projects deemed to have a small or medium impact, such as dams and basic sanitation infrastructure, to proceed without environmental permits. Environment Minister Marina Silva criticized the bill as a significant setback that dismantles the licensing process in Brazil, contrasting with earlier expressions of support from some members of Lula’s cabinet.
In a similar move, Canada’s Liberal government introduced Bill C-5, which enables the cabinet to expedite federal approvals for large projects deemed to serve the national interest, bypassing existing laws. Prime Minister Mark Carney convened a summit with First Nations leaders who have expressed concerns regarding the bill.
The Brazilian legislation comes amidst mounting pressure on the country’s environmental agency, Ibama, to grant a license for Petrobras, the state-run oil company, to commence oil drilling off the coast of Amapa in the Amazonian region. The project, crucial for Petrobras to replenish reserves, has been awaiting a permit for over a decade, sparking frustration from senate head Davi Alcolumbre, advocating for oil industry development in the region.
Alcolumbre’s actions, including pushing for the bill’s adoption despite objections from government officials, led to what some environmentalists view as a radical amendment, granting the federal government authority to fast-track strategic projects. While Lula retains the power to veto parts or the entirety of the bill, potential legal challenges may arise, including scrutiny by the Supreme Court, which has intervened in past contentious environmental legislation proposed by parliament.