BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados
• the Single Environmental Licence (LAU) – one-step licence authorising installation and operation with all conditions; • License by Adhesion and Commitment (LAC) – simplified licence based on the applicant’s declara- tion of compliance with pre-set requirements; • Corrective Operation Licence (LOC) – regularises unlicensed operations with compensatory obliga- tions; and • Special Environmental Licence (LAE) – applicable to “strategic” projects defined by federal decree upon proposal by the National Council of Govern- ment. Although the proposed law seeks to streamline bureaucracy and reduce judicialisation, it faces criti- cism from environmental scholars and civil society, who argue it weakens protections. The controversy reflects Brazil’s long-standing struggle to balance environmental preservation with economic develop- ment and to ensure that efficiency reforms do not undermine the constitutional duty to protect environ- mental assets. 4.3 Regulators’ Approach to Policy and Enforcement Strict Approach Brazilian regulators and enforcement authorities adopt a strict approach to environmental policy and com- pliance. Oversight increasingly relies on risk-based monitoring, guided by the precaution and prevention principles, and technology is used to detect: • deforestation; • illegal mining and resource exploitation; • invasion or misuse of conservation areas; and • non-compliance with environmental licence condi- tions. Once a violation is identified, authorities typically impose significant sanctions, including fines and embargoes on the underlying activity. In addition to administrative penalties, if environmen- tal damage occurs, operators are obliged to repair it. Priority is given to full recovery of the affected asset to its original condition; compensatory measures are accepted only when recovery is not possible. Authori-
ties may also impose additional mitigation measures for ongoing impacts. These obligations are often formalised in Conduct Adjustment Terms (TACs) with competent authorities, usually involving public prosecutors (federal or state, depending on the asset affected). TACs set deadlines, deterrent sanctions, and may include independent audits to verify compliance. Brazilian regulators emphasise transparency, stake- holder engagement in licensing, and integration with climate and biodiversity goals. Federal and state agencies frequently conduct joint enforcement opera- tions in priority biomes and sensitive areas. 4.4 Transferring Permits/Approvals Environmental licences are generally linked to the project and operator. Changes in ownership or cor- porate control typically require prior communication and, in many jurisdictions, formal transfer approval by the competent environmental agency to ensure continuity of compliance to the obligations set on the licence and, if necessary (as per the agencies’ pur- view), update of conditions. Transfer is not automatic; the transferee must demonstrate technical and legal capacity and assume outstanding obligations, includ- ing remedial duties. 4.5 Consequences of Breaching Permits/ Approvals Breaches of an environmental approval/permit in Bra- zil may lead to a tri-sided liability: • administrative (if an infraction took place); • civil (if damages are caused); and even • criminal (if a crime has been committed). On the administrative side, an infraction may lead to: • fines; • suspension or cancellation of licences; • embargoes on works or operations; • seizure of assets to cover eventual damages’ recovery or compensation; and • mandatory corrective measures. Civil liability for non-compliance may include:
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