New Environmental Licensing Law is positive, says CNA

The Brazilian Agriculture and Livestock Confederation (CNA) assessed that Bill No. 2.159/2021 on Environmental Licensing, approved on Thursday (17), in the Chamber of Deputies, modernizes, reduces bureaucracy, guarantees legal and environmental security and prevents losses in competitiveness for the country.

After 17 years in the Legislature, the text was approved by the Federal Senate and the Chamber of Deputies on Thursday (17), with Congressman Zé Vitor (PL/MG) as rapporteur. The matter now goes to the President for sanction.

"We've taken an important step toward ensuring legal certainty and predictability for those who invest and work in the field. The bill modernizes current legislation and establishes clear rules for businesses that require licensing, with defined deadlines and objective criteria, including for small producers," stated Representative Zé Vitor.

CNA's Sustainability Coordinator, Nelson Ananias (pictured), explained that in Brazil there is no general law that addresses environmental licensing, as the entire framework was shaped by resolutions from the National Environmental Council (Conama) and state legislation, making the procedure different in each state.

"The approved text meets the needs of the production sector by avoiding setbacks and establishing legal and environmental security for the country and the economy," he said.

According to Ananias, the approval of the bill, in addition to modernizing the legal framework, will reduce the delay in approving environmental licensing requests and update obsolete standards that were created in the 90s.

The new licensing rules, according to the CNA coordinator, do not eliminate the strictness of Brazilian environmental legislation, meaning producers will continue to produce sustainably and in compliance with the Forest Code, one of the most stringent laws in the world.

Furthermore, producers of low-impact environmental activities that are exempt from licensing will continue to be subject to the Rural Environmental Registry (CAR), an instrument that monitors native vegetation on properties.

Nelson Ananias stated that in agricultural activities not covered by the exemption, producers will have to obtain a License for Adhesion and Commitment (LAC).

The coordinator emphasizes that the enactment of Bill 2159/2021 will bring greater agility and legal certainty to investors in the sector. "The goal is for environmental licensing to become an instrument for defending society and safeguarding the interests of the environment, entrepreneurs, and the Brazilian population."

Nelson points out that, currently, there are divergent understandings among federal and state agencies, and the Public Prosecutor's Office, and that now, with the licensing law, producers will have a clearer understanding of their obligations to continue producing and complying with environmental legislation. The benefits, the coordinator concludes, extend beyond the sector and benefit society as a whole.