août 18 2025

Brazil’s General Environmental Licensing Act: New Provisions, Presidential Vetoes, Provisional Measure, and New Bill

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On August 8, 2025, following the long and contentious proceedings of Bill No. 2,159/2021, Law No. 15,190/2025 was enacted with 63 presidential vetoes, establishing the General Environmental Licensing Act (LGLA), which establishes a national regulatory framework applicable to all three levels of government. At the same time, the Executive Branch issued Provisional Measure No. 1,308/2025 to address so-called Special Environmental Licensing, and submitted Bill No. 3,834/2025 to the House of Representatives to regulate related aspects.

In general, the LGLA innovates by introducing new types of environmental licenses, setting maximum deadlines for license review and issuance, providing for automatic renewal in certain cases, establishing criteria for the imposition of environmental conditions, and amending provisions of the Environmental Crimes Act and the National Environmental Policy Act, among other provisions.

MAIN PROVISIONS

Key points of the LGLA include:

  • License by Adhesion and Commitment (LAC): Intended for small and medium-sized projects with low or medium pollution potential, based on self-declaration by the developer and a commitment to pre-established requirements, without prior technical analysis.
  • Special Environmental License (LAE): Aimed at “strategic projects,” as defined by decree, with a single-phase process and priority review to expedite analysis and issuance. Part of the LGLA section on the LAE was vetoed, and a Provisional Measure was issued to regulate the matter in its place. Notably, the LAE takes immediate effect, while the rest of the LGLA will enter into force 180 days after publication.
  • Corrective Operating License (LOC): Used to regularize an activity or project operating without an environmental license, obtainable through adhesion and commitment.
  • Exemption from licensing for agricultural and livestock activities: Exempts licensing requirements for the cultivation of species of agricultural interest, extensive and semi-intensive livestock, and small-scale intensive livestock, provided they are located on environmentally compliant rural properties or those undergoing regularization.
  • Simplified licensing for medium-scale intensive livestock: May be carried out through the LAC modality, provided the criteria set by the licensing authority are met.
  • Inclusion of authorizations in the licensing process: At the discretion of the relevant authority, environmental licenses may also cover authorizations for vegetation clearance and wildlife management.
  • Increased severity of criminal sanctions: Amends Article 60 of the Environmental Crimes Act to provide for imprisonment of six months to two years, or a fine, or both, for operating a potentially polluting activity without a valid environmental license. The penalty is doubled if the licensing is subject to an Environmental Impact Study.
  • Elimination of negligent conduct from Article 67 of the Environmental Crimes Act: Only intentional misconduct will trigger criminal liability for public officials issuing licenses, authorizations, or permits in violation of environmental laws.
  • Participation of Intervening Agencies: The distances set in Annex I of Interministerial Ordinance No. 60/2015 were altered to redefine the involvement of intervening agencies in environmental licensing.

Notable Presidential Vetoes

Of the 63 presidential vetoes to the new law, the most notable include:

  • Single-phase LAE procedure;
  • LAC for small- or medium-sized projects with low or medium pollution potential;
  • Limiting the list of activities subject to licensing to those explicitly provided for by law;
  • Corrective environmental licensing by adhesion and commitment with extinction of criminal liability under Article 60 of the Environmental Crimes Law;
  • Exemption from licensing for properties undergoing CAR regularization;
  • Limiting consultation with intervening authorities to only demarcated Indigenous lands and titled quilombola areas;
  • Removal of the special regime under the Atlantic Forest Law for native forest clearing;
  • Authorization for studies and research in any category of protected area;
  • Exemption from licensing for maintenance and infrastructure works and services;
  • Classification of small-scale dams as a public utility;
  • Simplified procedures and priority for licensing of water supply and sanitation projects, with an Environmental Impact Study required only in exceptional cases;
  • Subsidiary liability of contractors for environmental damage in the absence of a license.

Due to these presidential vetoes, the Congressional agenda will be suspended as of September 7 for analysis and deliberation on whether to uphold or override them.

The Environmental, Climate Change and ESG practice of Tauil & Chequer Advogados, in association with Mayer Brown, is available to provide further clarification on this matter.

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