BRAZIL Trends and Developments Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados
Introduction In recent years, Brazil has advanced a broad envi- ronmental and climate reform agenda, updating key legislation and public policies to better align environ- mental governance with economic and social objec- tives. Many of these initiatives have been driven by the country’s role as host of COP30 and its potential to leverage climate-related opportunities. Brazil has strengthened its regulatory framework for climate mitigation, sustainable finance and energy transition, while seeking to enhance policy co-ordination, imple- mentation capacity and sustainable development through its new environmental licensing framework. These developments reflect a growing institutional commitment to integrating environmental protection, competitiveness and fiscal policy within a coherent framework. The following sections outline the key regulatory and judicial developments of 2025, including measures already being implemented and others still under dis- cussion or design. Collectively, they illustrate Brazil’s ongoing effort to consolidate a modern environmental governance framework, integrating regulatory clarity, enforcement capacity and long-term climate planning. Environmental Licensing Reform: A New Framework for Project Approvals Brazil’s approval of the General Environmental Licens- ing Law (Law No 15,190/2025) marks the country’s most significant regulatory development in recent years. Since its inception, the proposal has been the subject of intense debate and controversy, reflect- ing the challenge of reconciling environmental pro- tection with development interests. The comments below refer to the text as sanctioned by the President, already incorporating the vetoes applied. The debate, particularly regarding the constitutionality of certain provisions, is now expected to move to the Supreme Federal Court (STF). If upheld in its current form, the new statute estab- lishes a unified national framework for environmental licensing, replacing the fragmented procedures that have long varied across federal, state and municipal levels. It aims to make approvals more predictable and transparent while maintaining the constitutional balance between environmental protection and eco-
nomic development. The law will enter into force in early 2026 and provides a transitional regime to avoid disruption to ongoing applications. At its core, the reform modernises the licensing sys- tem. It expands the traditional three-stage model (pre- liminary, installation and operation licenses) by estab- lishing flexible pathways that vary according to project complexity and potential impact. The new Licença Ambiental Especial (LAE) allows multi-phase analysis for large-scale projects, while simplified procedures are available for low-risk activities. The statute also codifies public participation mechanisms, clarifies the duration and renewal of licenses, and strengthens co- ordination among environmental agencies, aiming to reduce procedural overlap and jurisdictional conflict. The final framework balances streamlining with safe- guards for sensitive areas. Fast-track mechanisms are restricted to projects with well-defined technical criteria, and activities with significant environmental or social implications remain subject to full environmen- tal impact assessments. The law reinforces the role of protected-area managers and requires consultation where Indigenous and Quilombola territories may be affected. Ongoing licensing processes will continue under the rules in force when they were initiated, but once the current phase concludes – for instance, upon the issuance of an installation or operation licence – any subsequent renewal or modification must already fol- low the new framework. This gradual transition aims to avoid paralysis of the pipeline while aligning future steps with the unified procedures. Companies with projects in advanced stages are encouraged to review how their next licensing phase may be affected, par- ticularly in relation to documentation formats and inter-agency co-ordination. If effectively implemented, the reform could transform environmental governance in Brazil. By introducing clearer rules and risk-based procedures, it has the potential to reduce litigation and enhance predicta- bility in project planning. The main challenges ahead concern the expected constitutional objections and, more broadly, the pace at which federal and state authorities will harmonise their typologies and digi-
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