Lula signs environmental licensing law with 63 vetoes

President Luiz Inácio Lula da Silva signed into law this Friday (8/8) the environmental licensing bill, approved by the National Congress, with 63 vetoes. The proposal, criticized by environmentalists and dubbed the "Devastation Bill", had been approved by the Chamber of Deputies on the 17th and relaxed or eliminated requirements for environmental licensing in the country.

According to the Planalto Palace, the vetoes seek to balance environmental protection with legal certainty for projects, and were defined after dialogue with civil society.

The project had strong support from agribusiness and industry sectors, but was harshly criticized by environmental organizations and the Ministry of the Environment (MMA), which warned of a possible setback in Brazilian environmental legislation.

During a press conference at the Planalto Palace, Environment Minister Marina Silva highlighted that the decision to veto the restrictions was collective and sought to maintain the integrity of the licensing process.

"Our goal was to ensure the integrity of environmental licensing while also allowing for greater speed without compromising the quality of the analyses, which are crucial in the face of the climate crisis, biodiversity loss, and desertification," the minister stated.

In addition to the sanction with vetoes, Lula also signed a provisional measure (MP) and a new bill with constitutional urgency, which deal with points removed from the original text, but with new wording.

Special Environmental Licensing

The provisional measure establishes the Special Environmental Licensing (LAE) modality, aimed at projects considered strategic. However, the government vetoed the possibility of this process occurring in a single phase, maintaining all the steps required for traditional licensing.

“The LAE will be applied to priority projects, with teams designated to expedite analyses, but without eliminating important phases of the process,” explained Marina Silva.

Government Guidelines

The Executive Secretary of the Civil House, Miriam Belchior, highlighted that the vetoes were defined based on four guidelines:

1. Maintain the integrity of the environmental licensing process;
2. Offer legal security to responsible entrepreneurs and investors;
3. Ensure the rights of indigenous peoples and quilombola communities;
4. Streamline procedures without compromising their efficiency.

Vetoed points

Among the main vetoes is the exclusion of the possibility of simplified licensing, through self-declaration, for projects with medium pollution potential—such as tailings dams. This type of licensing (LAC) will remain restricted to projects with low environmental impact.

The broad transfer of powers to the states and the Federal District to decide on licensing criteria alone was also vetoed. The government determined that national parameters must be respected.

Another important veto was the removal of the Atlantic Forest from the special protection regime, a measure that, according to the Planalto, would worsen the critical situation of the biome, which has only 24% of native vegetation remaining.

Traditional peoples and rural producers

Lula also vetoed the section that limited consultations with Indigenous and Quilombola communities to those with already recognized or titled territories. With the veto, the right to consultation also extends to groups in the process of obtaining recognition from Funai or the Palmares Foundation.

Regarding the Rural Environmental Registry (CAR), the president blocked a proposal that would have exempted producers whose registrations had not yet been reviewed from environmental licensing. According to the government, only properties with a regularized CAR will be exempt from licensing.

Compensations and Conservation Units

Another point vetoed was limiting compensatory measures to direct environmental impacts. The government argues that indirect impacts should also be considered in the licensing process, provided there is a causal link with the project.

The binding nature of technical opinions from management bodies of Conservation Units, which had been eliminated in the text approved by Congress, was also maintained. With the veto, these opinions remain mandatory for licensing projects that directly affect these areas or their buffer zones.

Financial responsibility

Finally, Lula vetoed the section that removed financial institutions' liability for environmental damage caused by projects they finance. According to the Executive, financiers must ensure that the developer has an environmental license before granting credit, which reinforces damage prevention and encourages sustainable development.