Environmental Law 2025

Definitive global law guides offering comparative analysis from top-ranked lawyers

CHAMBERS GLOBAL PRACTICE GUIDES

Definitive global law guides offering comparative analysis from top-ranked lawyers

Contributing Editors Tove Andersson and Anders Linnerborg Setterwalls Advokatbyrå AB

Global Practice Guides

Environmental Law Contributing Editors Tove Andersson and Anders Linnerborg Setterwalls Advokatbyrå AB

2025

Chambers Global Practice Guides For more than 20 years, Chambers Global Guides have ranked lawyers and law firms across the world. Chambers now offer clients a new series of Global Practice Guides, which contain practical guidance on doing legal business in key jurisdictions. We use our knowledge of the world’s best lawyers to select leading law firms in each jurisdiction to write the ‘Law & Practice’ sections. In addition, the ‘Trends & Developments’ sections analyse trends and developments in local legal markets. Disclaimer: The information in this guide is provided for general reference only, not as specific legal advice. Views expressed by the authors are not necessarily the views of the law firms in which they practise. For specific legal advice, a lawyer should be consulted. Content Management Director Claire Oxborrow Content Manager Jonathan Mendelowitz Senior Content Reviewers Sally McGonigal, Ethne Withers, Deborah Sinclair and Stephen Dinkeldein Content Reviewers Vivienne Button, Lawrence Garrett, Sean Marshall, Marianne Page, Heather Palomino and Adrian Ciechacki Content Coordination Manager Nancy Laidler Senior Content Coordinators Carla Cagnina and Delicia Tasinda Content Coordinator Joanna Chivers Head of Production Jasper John Production Coordinator Genevieve Sibayan

Published by Chambers and Partners 165 Fleet Street London EC4A 2AE Tel +44 20 7606 8844 Fax +44 20 7831 5662 Web www.chambers.com

Contents

INTRODUCTION Contributed by Tove Andersson, Anders Linnerborg, Sara Eriksson and Ellen Lewin, Setterwalls Advokatbyrå AB p.5

FINLAND Law and Practice p.190

Contributed by Erottaja Attorneys Ltd Trends and Developments p.207 Contributed by Erottaja Attorneys Ltd FRANCE Law and Practice p.213 Contributed by UGGC Avocats Trends and Developments p.231 Contributed by Bredin Prat ITALY Law and Practice p.237 Contributed by Ambientalex Studio Legale Trends and Developments p.257 Contributed by Ambientalex Studio Legale

BRAZIL Law and Practice p.10 Contributed by Bermudes Advogados Trends and Developments p.30 Contributed by Bermudes Advogados CANADA Law and Practice p.37 Contributed by Lawson Lundell LLP CHILE Law and Practice p.53 Contributed by TM Abogados Trends and Developments p.73 Contributed by TM Abogados Contributed by Jin Mao Law Firm Trends and Developments p.97 Contributed by Jin Mao Law Firm COSTA RICA Law and Practice p.104 Contributed by BioIuris Trends and Developments p.119 Contributed by BioIuris CHINA Law and Practice p.78

KAZAKHSTAN Law and Practice p.262

Contributed by Haller Lomax LLP Trends and Developments p.279 Contributed by Haller Lomax LLP

LUXEMBOURG Law and Practice p.284

Contributed by Elvinger Hoss Prussen Trends and Developments p.297 Contributed by Elvinger Hoss Prussen MEXICO Law and Practice p.302 Contributed by Baker McKenzie

CZECH REPUBLIC Law and Practice p.124 Contributed by act legal

NETHERLANDS Law and Practice p.318 Contributed by Loyens & Loeff

DENMARK Law and Practice p.143 Contributed by HaugaardBraad Trends and Developments p.158 Contributed by HaugaardBraad DOMINICAN REPUBLIC Law and Practice p.163 Contributed by Estrella & Tupete Trends and Developments p.183 Contributed by Estrella & Tupete

NORWAY Law and Practice p.335 Contributed by Wikborg Rein Advokatfirma AS

PORTUGAL Law and Practice p.351 Contributed by PLMJ Trends and Developments p.372 Contributed by VdA

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Contents

SINGAPORE Law and Practice p.377 Contributed by Shook Lin & Bok LLP SWEDEN Law and Practice p.396 Contributed by Setterwalls Advokatbyrå AB

USA Trends and Developments p.408 Contributed by Sher Edling

USA – ALABAMA Law and Practice p.413 Contributed by Lightfoot, Franklin & White, LLC Trends and Developments p.425 Contributed by Lightfoot, Franklin & White, LLC USA – CALIFORNIA Law and Practice p.430 Contributed by Bick Law LLP Trends and Developments p.445 Contributed by Environmental General Counsel

USA – NEW JERSEY Law and Practice p.451

Contributed by Connell Foley LLP Trends and Developments p.467 Contributed by Connell Foley LLP USA – NEW YORK Trends and Developments p.473 Contributed by Phillips Lytle LLP

USA – TEXAS Law and Practice p.477 Contributed by Troutman Pepper Locke LLP Trends and Developments p.490 Contributed by Troutman Pepper Locke LLP

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INTRODUCTION

Contributed by: Tove Andersson, Anders Linnerborg, Sara Eriksson and Ellen Lewin, Setterwalls Advokatbyrå AB

Setterwalls Advokatbyrå AB is a leading full-ser- vice business law firm providing world-class advice across all areas of commercial law, represented by 340 employees in Stockholm, Gothenburg and Mal- mo. The environmental team works in all aspects of environmental law, advising clients on how to prevent and eliminate environmental law problems and risks related to developments, acquisitions, etc. Clients include Swedish and international companies of all sizes as well as public bodies. The firm’s experience

includes representing Alby PtX in the permit proceed- ing for a large-scale hydrogen production plant (pro- ject developed by RES Renewable Norden and Prime Capital); representing Sydvatten in responding to a possible claim of EUR 100–300 million in relation to community damage caused by extreme flooding; and representing Aura Energy and its Swedish subsidiary Vanadis Battery Metals on its application for a mining concession for vanadium.

Contributing Editors

Co-Authors

Tove Andersson is a partner at Setterwalls who has worked in the field for over 20 years. She has extensive and widely recognised experience in large-scale environmental law matters such as permit proceedings in different

Sara Eriksson is a senior associate at Setterwalls who has worked in the field for about six years. She advises companies on environmental aspects in transactions, permitting and notification processes, compliance and enforcement, and other strategic environmental law issues. Within Setterwalls’ environmental practice, she supports clients across the renewable energy sector, rock material industry and industrial operations, among others. Sara also advises clients regarding energy-market regulation and grid/ network matters. She is a member of the Swedish Bar Association.

industries, as well as transactions in environmental and energy law matters. The energy sector, not least the wind power industry, is one of her prime focuses, including also mining, quarries, waste, solar power and hydrogen production. Tove has particular knowl- edge of issues relating to species protection and is a board member of Sweden’s industry association for rock material (SBMI). In 2023, she received the Wind Power Award from the Swedish Wind Power Associa- tion for meritorious efforts in the industry.

Ellen Lewin is an associate at Setterwalls who has worked in the field for about five years. She assists clients with permit applications and notifications under Swedish environmental law; assists in issues

Anders Linnerborg is a partner at Setterwalls who has worked in the field for about 36 years. He has vast experience and is renowned for his

work relating to industry, energy, water, infrastructure, materials and minerals, etc. His work includes permit processes, legal advice in relation to questions on environmental liability and advice in commercial transactions. Notably, Anders has unique and unmatched experience and knowledge when it comes to legal issues relating to contaminated land and water supply. He is today one of the most experienced lawyers in the minerals industry field, where he has been a key figure since early 2000.

related to contaminated land, waste management, and chemicals, etc; conducts liability assessments; engages in contract drafting and interpretation; and provides legal guidance in other aspects of environmental law.

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INTRODUCTION Contributed by: Tove Andersson, Anders Linnerborg, Sara Eriksson and Ellen Lewin, Setterwalls Advokatbyrå AB

Setterwalls Advokatbyrå AB PO Box 4501 203 20 Malmo Sweden

Tel: +46 10 690 04 00 Fax: +46 10 690 04 70 Email: malmo@setterwalls.se Web: www.setterwalls.se

Global Overview The year 2025 has been marked by significant global events that have had profound implications for envi- ronmental law and policy. As predicted in the 2024 edition of the guide, the elections of 2024 have had a significant impact on environmental policy worldwide in 2025. Not least in the US, where several measures have altered incentives for climate action and sustain- ability, including the US second withdrawal from the Paris Agreement on climate change, the suspension of large renewable energy projects and the imposi- tion of tariffs on primary materials, such as steel and aluminum, disrupting global value chains for clean technologies and affecting international trade more broadly. Similar to the last three years, ongoing armed conflicts in Ukraine and Palestine have during 2025 continued to shape the environmental and energy landscape and not only caused immense human suffering but generated substantial environmental harm, including widespread pollution and long-term ecological dam- age. At the same time, numerous natural disasters and extreme weather events worldwide have brought devastating consequences for both humans and the environment. To recognise and address climate change, there have been several efforts on a global level during 2025. Examples include the United Nations declaring 2025 as the International Year of Glaciers’ Preservation to raise global awareness about the critical role of glaciers in the climate system and the CBD COP16 reaching agreements on the implementation of the Kunming- Montreal Global Biodiversity Framework (KMGBF). At an EU level, the EU Commission has pursued a broad

agenda to address climate change, promote sustain- ability and improve resource efficiency, reflected in a series of regulations, directives and ongoing negotia- tions. Examples include the Clean Industrial Deal, the Packaging Waste Regulation (PPWR) and the Chemi- cal Industry Action Plan (CIAP), to name a few. At the same time, global energy innovation has continued apace, and major energy projects using various types of technologies have continued to be developed and operational during 2025. While it is evident that 2025 has met resistance to climate action in some parts of the world, it can be concluded that sustainability and the climate remain critical and urgent global priorities and continue to spur innovation and regulatory development around the world. Some frequent themes that have recurred in relation to sustainability issues in 2025 include decar- bonisation, waste management and biodiversity. Development Concerning Decarbonisation and In 2025, discussions regarding renewable energy and the decarbonation of industries continued. While the US government has shifted its focus away from renewable energy, other large countries such as China and India have significantly increased their expansion of renewable energy sources such as solar and wind power. The European Commission has continued to have a clear focus on decarbonisation and developing renewable energy sources, including the adoption of the Clean Industrial Deal as well as issuing recommen- dations and guidance for EU member states to encour- age innovative technologies and forms of renewable energy deployment. Changes have also been made to Clean Energy Introduction

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INTRODUCTION Contributed by: Tove Andersson, Anders Linnerborg, Sara Eriksson and Ellen Lewin, Setterwalls Advokatbyrå AB

the EU day-ahead electricity trading markets, moving trading intervals from hourly to 15-minute intervals, making the markets more dynamic and equipped for the growing share of renewable energy. It is clear that decarbonisation will require a portfolio of different measures on various levels. Over the past years, interest has grown in both cutting emissions and addressing those already released. Methods include both clean energy sources, including nuclear power, and CO₂ capture and storage solutions. Nuclear power and small modular reactors (SMRs) The increasing demand for electricity has made sever- al governments and industrial stakeholders turn their attention to nuclear power, providing a stable form of low-emission electricity and reducing dependence on fossil fuels. Although an increased interest, significant regulatory and market barriers persist, including high costs and long permitting and construction timelines. In the beginning of the year the IEA suggested that SMRs (see report, The Path to a New Era for Nuclear Energy), cutting the overall investment costs for indi- vidual projects, can play an essential role in change along with continued innovation and government support. Similar proposals have been made by the European Industrial Alliance on SMR, established in February 2024, which in September 2025 adopted its first Strategic Action Plan, including steps to simplify- ing regulatory frameworks. The European Commis- sion is one of the key partners of the Alliance and in implementing the strategy. The Commission’s sup- port to accelerate the development and deployment of SMRs has also been outlined in the Clean Industrial Deal, published earlier this year. Consequently, fur- ther policy and market initiatives concerning SMRs are expected in the years to come, not least in the EU. Carbon dioxide capture and geological storage (CCS) While discussing decarbonisation, technologies for CO₂ capture and storage should also be mentioned. As outlined in the Net-Zero Industry Act (NZIA), the EU has set a target of achieving a CO₂ injection capacity of at least 50 million tonnes per year by 2030. The regulation is designed to develop an EU market for CO₂ storage services and introduces obligations for

hydrocarbon producers, EU member states and the European Commission. Over the past year, the work with CO₂ storage has intensified in Europe. This is partly because, since December 2024, the member states of the EU are required to submit an annual report to the Com- mission detailing active CO₂ capture, transport and storage projects within their borders, along with the related needs for injection and storage capacity. They must also disclose any national support measures, strategies and targets adopted or planned for CO₂ capture. These reports are made publicly available by the Commission. Regulatory Developments on Sustainability The year 2025 marks notable advancements in the regulatory landscape concerning sustainability. The EU has introduced and updated several key regu- lations aimed at reducing waste, promoting circular economy principles and enhancing environmen- tal resilience. On the international stage, efforts to address plastic pollution continue through ongoing United Nations negotiations. Waste management During 2025, waste has continued to be an important issue within the EU. The Packaging Waste Regula- tion (PPWR), replacing the PPWD, and the revision of the Waste Framework Directive to reduce textile and food waste are examples of new regulation which have been relevant during 2025. The PPWR entered into force in February 2025, harmonising rules for packaging, with a focus on secondary raw materi- als, manufacturing, recycling and reuse. The aim is to minimise the quantities of packaging and waste gen- erated while lowering the use of primary raw materials and fostering the transition to a circular, sustainable and competitive economy. Most provisions will start to apply from August 2026. During 2025, the European Commission has also tak- en measures to implement the Waste Shipment Regu- lation, adopted in April 2024, by developing a Digital Waste Shipment System (DIWASS) to simplify waste shipments between member states. The DIWASS is currently under development but will be mandatory to

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INTRODUCTION Contributed by: Tove Andersson, Anders Linnerborg, Sara Eriksson and Ellen Lewin, Setterwalls Advokatbyrå AB

use for all intra-EU waste shipments, making the entire process fully digital, from 21 May 2026. It is also worth mentioning that the UN negotiations that began in 2022 regarding a global agreement to combat plastic pollution have continued during 2025. However, after ten days of negotiation in August 2025 no consensus could be reached and the Intergovern- mental Negotiating Committee (INC) agreed to resume negotiations at a future meeting. Water resilience While discussing sustainability, the European Com- mission’s new strategy for water resilience, presented 4 June 2025, is worth mentioning. The strategy has been developed in response to the problems and risks the Commission has identified regarding the Union’s water resources. In the strategy, the European Com- mission highlights factors that are expected to have increasing consequences for the Union’s inhabitants, economy and environment as extreme weather events become more common due to climate change. The key objectives of the strategy include restoring and protecting the water cycle as the basis for sus- tainable water supply, building a water-smart econ- omy and securing clean and affordable water and sanitation for all, and empowering citizens for water resilience. While the Commission concludes that the regulatory framework is already well developed, the strategy proposes and encourages additional meas- ures and strategies to build water resilience. It is evi- dent that the Commission views water resilience not only as a vital factor for a sustainable future but also as a source of business opportunities and an incentive for innovation. The UN Water Conference will be held in the United Arab Emirates in December 2026. The conference will, among other things, address sustainable man- agement of water and sanitation, as well as the water- related goals and targets of the 2030 Agenda. EU Taxonomy disclosures In discussions about sustainability, the revised EU Taxonomy is also worth mentioning. In June 2025, the European Commission adopted a set of measure- ments to simplify the application of the EU Taxonomy

for Sustainable Activities, aiming to reduce the admin- istrative burden for EU companies, thus enhancing EU competitiveness while preserving core climate and environmental goals. Given that the European Parlia- ment and the Council do not have any objections, the simplification measures laid out in this Delegated Act will apply as of 1 January 2026 and will cover the 2025 financial year. Stricter Rules for Chemicals In July 2025, the EU Commission published its Chemi- cal Industry Action Plan (CIAP) with the aim of mod- ernising the chemical industry and strengthening its competitiveness. The action plan includes, among other things, measures to tackle challenges such as high energy costs, unfair global competition and low demand. Furthermore, the Commission aims to increase investment in innovation and sustainability. In this context it should be mentioned that there is an ongoing process of revising the Regulation on Reg- istration, Evaluation, Authorisation and Restriction of Chemicals (REACH) with the aim of modernising chemical legislation. The EU Commission’s proposal is expected at the end of 2025. Regarding chemical legislation it should also be noted that, at the end of 2024, the revised Regulation on the Classification, Labelling and Packaging of Chem- icals (CLP) entered into force. Among other things, the Revised CLP ensures clearer chemical labelling, especially for online sales, and introduces simpler and clearer requirements to enable chemicals to move freely within the EU. Summary It has been a year of pronounced divergence and acceleration in environmental law and policy. Geo- political developments, including the United States’ renewed withdrawal from the Paris Agreement and ongoing conflicts in Ukraine and Palestine, reshaped global climate incentives and exposed environmen- tal vulnerabilities, while a series of extreme weather events underscored systemic risk. In parallel, multi- lateral processes advanced, with the UN spotlighting glacier preservation and COP16 operationalising the Kunming-Montreal Global Biodiversity Framework. The European Union sustained a comprehensive leg- islative agenda centred on decarbonisation, circular-

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INTRODUCTION Contributed by: Tove Andersson, Anders Linnerborg, Sara Eriksson and Ellen Lewin, Setterwalls Advokatbyrå AB

ity and resilience, exemplified by the Clean Industrial Deal, the Packaging and Packaging Waste Regulation, and the Chemical Industry Action Plan. Energy policy prioritised diverse pathways: expanding renewables, renewed attention to nuclear including support for SMRs through the European Industrial Alliance and Commission initiatives, and scaling carbon capture and storage under the Net-Zero Industry Act’s injec- tion capacity target alongside enhanced member state reporting. Waste and materials policy progressed through harmonised packaging rules and steps to dig- italise intra-EU waste shipments, while global plastics negotiations remained inconclusive. Water resilience emerged as a strategic priority, with EU objectives spanning cycle restoration, water-smart growth, and access to clean, affordable water. Sustainable finance measures simplified EU Taxonomy disclosures to reduce compliance burdens, and chemicals regula- tion advanced via the revised CLP and forthcoming REACH reforms. Overall, despite headwinds, regu- latory innovation and market initiatives continued to drive implementation across the EU and beyond.

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BRAZIL

Colombia

Ecuador

Brazil

Peru

Brasilia

Bolivia

Law and Practice Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão Bermudes Advogados

Rio de Janeiro São Paulo

Paraguay

Chile

Argentina

Contents 1. Regulatory Framework and Law p.12 1.1 Environmental Protection Policies, Principles and Laws p.12 2. Enforcement Authorities and Mechanisms p.13 2.1 Regulatory Authorities p.13 2.2 Co-Operation p.13 3. Environmental Protections p.14 3.1 Protection of Environmental Assets p.14 3.2 Breaching Protections p.14 4. Environmental Incidents and Permits p.15 4.1 Investigative and Access Powers p.15 4.2 Environmental Permits/Approvals p.15 4.3 Regulators’ Approach to Policy and Enforcement p.16 4.4 Transferring Permits/Approvals p.16 4.5 Consequences of Breaching Permits/Approvals p.16 5. Environmental Liability p.17 5.1 Key Types of Liability p.17 5.2 Liability for Historical Environmental Incidents or Damage p.17 5.3 Key Defences p.18 6. Corporate Liability p.18 6.1 Liability for Environmental Damage or Breaches of Environmental Law p.18 6.2 Environmental Taxes p.18 6.3 Incentives, Exemptions and Penalties p.19 6.4 Shareholder or Parent Company Liability p.19

10. Civil Liability p.21 10.1 Civil Claims p.21 10.2 Exemplary or Punitive Damages p.22 10.3 Class or Group Actions p.22 10.4 Landmark Cases p.22 11. Contractual Agreements p.23 11.1 Transferring or Apportioning Liability p.23 12. Contaminated Land p.23 12.1 Key Laws Governing Contaminated Land p.23 12.2 Clearing Contaminated Land p.24 12.3 Determining Liability p.24 12.4 Proceedings Against Polluters p.24 12.5 Investigating Environmental Accidents p.25 13. Climate Change and Emissions Trading p.25 13.1 Key Policies, Principles and Laws p.25 13.2 Targets to Reduce Greenhouse Gas Emissions p.26 14. Asbestos and Polychlorinated Biphenyls (PCBs) p.26 14.1 Key Policies, Principles and Laws Relating to Asbestos and PCBs p.26 15. Waste p.26

15.1 Key Laws and Regulatory Controls p.26 15.2 Retention of Environmental Liability p.27 15.3 Circular Economy Requirements p.27

15.4 Rights and Obligations Applicable to Waste Operators p.27 16. Environmental Disclosure and Information p.28 16.1 Disclosure and Reporting Requirements p.28

6.5 ESG Requirements p.19 6.6 Environmental Audits p.20 7. Personal Liability p.20 7.1 Directors and Other Officers p.20 8. Insurance p.20 8.1 Environmental Insurance p.20 9. Lender Liability p.20 9.1 Financial Institutions/Lenders p.20 9.2 Lender Protection p.21

16.2 Public Environmental Information p.28 16.3 Corporate Disclosure Requirement p.28 16.4 Green Finance p.29 17. Transactions p.29 17.1 Environmental Due Diligence p.29 17.2 Disclosure of Environmental Information p.29 17.3 Key Issues in Environmental Due Diligence p.29

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BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados

Bermudes Advogados is a national reference in complex environmental and climate litigation, with over 50 years of tradition. The team leads landmark cases, including the Mariana and Brumadinho dam disasters, and is known for its strategic, technical and comprehensive approach to defending clients in sensitive disputes involving public authorities. The firm is recognised for shaping legal precedents in environmental law, participating in constitutional

discussions, and contributing to the development of national regulations. Bermudes Advogados’ practice includes negotiating settlements, evaluating ESG im- pacts, and maintaining strong relationships with key stakeholders to ensure effective and timely resolu- tions. The environmental partners are active in aca- demic and regulatory debates, reinforcing the firm’s commitment to legal excellence and innovation in the field.

Authors

Thaís Vasconcellos de Sá has been a partner at Bermudes Advogados since 2010, dedicated to dispute resolution and crisis management, with a focus on environment, bankruptcy and corporate matters.

Ana Julia Grein Moniz de Aragão is an internationally trained lawyer with a Master’s in Environmental Law from Stanford University (2023) and a law degree from the Federal University of Paraná, with academic experience in

She is director at the Centre of Studies of Legal Societies – Rio de Janeiro, and a member of the Turnaround Management Association and its Legislative Reform and Mediation Committees, as well as of the International Women’s Insolvency and Restructuring Confederation and of the Brazil-UK Committee of the Bar Association of Rio de Janeiro (OAB-RJ). Recognised by Chambers and Partners for Crisis Management since 2024, Thaís is author of a number of published articles.

Italy and Switzerland. She was an International Associate at Vinson & Elkins in New York (2023–24) and is a member of the Brazilian Arbitration Committee (CBAr). Ana Julia frequently lectures on dispute resolution and class actions and has authored and translated key works on international commercial law, including contributions to CISG publications. Her practice at Bermudes Advogados reflects a strong academic foundation and global perspective in arbitration and complex litigation.

Bermudes Advogados Praça XV de Novembro, 20 11th Floor Rio de Janeiro/RJ CEP 22010-010 Brazil Tel: +55 21 3221 9000 Email: thaissa@sbadv.com.br Web: www.bermudes.com.br

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BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados

1. Regulatory Framework and Law 1.1 Environmental Protection Policies, Principles and Laws Environmental Protection in the Brazilian Federal Constitution Environmental protection is a fundamental premise of the Brazilian legal system. It derives from the Fed- eral Constitution (BFC), which lists the defence of the environment as a principle of both the economic order (Article 171, VI) and the tax system (Article 145, §3º). It also grants everyone the right to an ecologically balanced environment (Article 225), obliging public authorities and society to defend and preserve it for present and future generations. Under the Brazilian legal framework, these constitu- tional principles must be detailed by infra-constitu- tional norms imposing specific obligations on private parties. As Brazil follows a civil law system, such obli- gations must be prescribed by law, in line with the legality principle (BFC, Article 5, II). Brazilian Legislation The Constitution grants the federal, state and munici- pal governments concurrent powers to legislate on: • environmental assets; • environmental protection (Article 24, VI); and • environmental liability (Article 24, VIII). Complementary Law 140/2011 sets co-operation guidelines among these entities for the exercise of such powers. Each level of government acts accord- ing to its sphere of interest: • municipalities on local matters; • states on inter-municipal matters; and • the federal government on national issues or fed- eral environmental assets (rivers, forests, etc). In practice, these boundaries are often blurred, gen- erating overlaps and disputes, particularly in environ- mental licensing processes.

Cross-Cutting National Policies and Brazilian Environmental Architecture Federal laws form the backbone of Brazil’s environ- mental framework. The most relevant are as follows. • National Environmental Policy (Law No 6,938/1981, or NEPA) – establishes guidelines for environmental protection (notably environmental licensing and corresponding studies – EIA/RIMA), and creates the National Environmental System (SISNAMA), co-ordinated by the Ministry of the Environment and Climate Change (MMA), with regulatory sup- port from the National Council for the Environment (CONAMA) and enforcement by the Brazilian Insti- tute of the Environment and Renewable Natural Resources (IBAMA) and state/municipal agencies. Decree 99,274/1990 details SISNAMA’s structure. • Environmental Crimes Law (Law No 9,605/1998) – defines environmental crimes and penalties appli- cable to individuals and legal entities. • Decree No 6,514/2008 – regulates administrative infractions and sanctions (with analogous state rules). For civil liability, NEPA’s provisions prevail, supplemented by the Civil Code when compatible. Key Environmental Principles In Brazil’s civil law system, written law prevails, but courts and scholars have consolidated guiding envi- ronmental principles for interpretation and policy- making. • Prevention – activities must prioritise alternatives that avoid environmental risks (NEPA, Article 2 II– IV; Article 4 I, VI). • Precaution – in case of scientific uncertainty, choose the option that best protects the environ- ment (NEPA, Article 2 VI; Article 4 IV). The in dubio pro natura principle supports precautionary injunc- tions before Brazilian courts. • User-pays – users of environmental resources must bear the costs of recovery or compensation for permitted impacts, as defined in environmental licences (NEPA, Article 4 VII, 2nd part). • Polluter-pays – polluters must repair or compen- sate for damages, internalising environmental costs in their operations (NEPA, Article 4 VII, 1st part; Article 14 §1).

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BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados

• Full reparation of environmental damage – polluters must fully restore the environment to its prior con- dition; when impossible, compensatory measures (preferably in kind) must ensure equivalent environ- mental benefits. 2. Enforcement Authorities and Mechanisms 2.1 Regulatory Authorities Key Regulatory Authorities for Environmental Policy Brazil’s environmental governance is organised under the National Environmental System (SISNAMA), cre- ated by Law No 6,938/1981 (National Environmental Policy, or PNMA). At the federal level: • the Ministry of the Environment and Climate Change (MMA) defines policies; • the National Council for the Environment (CONA- MA) issues technical norms; • the Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA) handles federal licensing, inspection and enforcement; • the Chico Mendes Institute for Biodiversity Con- servation (ICMBio) manages federal conservation units and applies penalties within them; and • the National Water and Sanitation Agency (ANA) regulates and grants water use rights over federal water resources. At the state level, State Environmental Secretariats and Agencies (eg, CETESB in São Paulo, INEA in Rio de Janeiro, FEAM/SEMAD in Minas Gerais) are responsible for licensing and enforcement within their territories, alongside State Water Resources Agencies and river basin committees. At the municipal level, Municipal Environmental Secre- tariats may license and supervise local-impact activi- ties, when authorised by complementary law. Sector regulators – such as ANP (oil and gas), ANTAQ (ports), ANTT (transport) and ANEEL (electricity) – also set environment-related standards in their areas.

Licensing and enforcement powers are distributed among federative entities according to impact and location, under Complementary Law No 140/2011. Additional clarification on the participation of other agencies (eg, ICMBio, FUNAI for Indigenous peoples, FCP for Quilombola communities) may be necessary. The Role of Public Prosecutors The Federal and State Public Prosecutors’ Offices play a key role in enforcing environmental obliga- tions and liabilities – civil and criminal – through civil inquiries, public civil actions, and conduct adjustment agreements (TACs). The Federal Police and State Mili- tary Environmental Police assist prosecutors in out-of- court investigations and enforcement. 2.2 Co-Operation Co-Operation Mechanisms With Regulatory Authorities Co-operation between private parties and regulatory authorities occurs mainly through: • administrative licensing procedures, which may involve public participation via hearings and envi- ronmental impact studies (EIA/RIMA); • formal information requests and inspections by environmental agencies and public prosecutors; • conduct Adjustment Terms (TACs) negotiated with public prosecutors to remedy environmental harm or ensure compliance with environmental licences and mitigation requirements; • participation in River Basin Committees for water allocation; and • adherence to due diligence and disclosure pro- grammes. Companies typically do the following: • maintain environmental compliance programmes; • submit periodic monitoring reports required by their licences; and • use self-reporting channels in case of operational incidents. Inter-Agency and Inter-Federative Co-Operation Co-operation among IBAMA, ICMBio, state agencies and police forces occurs through specific protocols or joint operations aimed at addressing environmental

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BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados

infractions or monitoring remediation measures after environmental damage. Within licensing procedures, such co-operation is regulated by: • Complementary Law No 140/2011; • CONAMA Resolutions 01/1986 and 237/1997; and • Federal Law No 15,190/2025 (once enacted) – cur- rently in the final stages of legislative approval. 3. Environmental Protections 3.1 Protection of Environmental Assets Environmental Protection in Practice Environmental protection in Brazil derives from the constitutional duty imposed on the state and soci- ety to defend and preserve the environment (Federal Constitution, Article 225). This duty is primarily imple- mented through mandatory Environmental Licensing for activities that are actual or potential polluters or use environmental resources. Projects with significant potential degradation must undergo an Environmental Impact Study (EIA/RIMA) before approval. The state also protects the environment by: • creating specially protected areas such as Environ- mental Protection Areas (APAs), Permanent Pres- ervation Areas (APPs), and Legal Reserves on rural properties; and • regulating and monitoring the production, com- mercialisation and use of substances or techniques that pose environmental risks. Key statutes include the following. • Forest Code (Law No 12,651/2012) – protects APPs and Legal Reserves, registered in the Rural Environmental Registry (CAR). • National System of Conservation Units (SNUC – Law No 9,985/2000) – governs conservation areas with specific zoning and restrictions. • National Water Resources Policy (Law No 9,433/1997) – ensures basin planning, water rights, and charges for use.

• CONAMA resolutions – set National Air Quality Standards and emission limits for stationary and mobile sources. • National Solid Waste Policy (PNRS – Law No 12,305/2010) – requires waste management plans, reverse logistics for priority products, and proper disposal. • Environmental licensing and EIA rules (CONAMA Resolution 01/1986 and 237/1997) – regulate pro- jects with significant impacts. • Biodiversity Law (Law No 13,123/2015) – governs access and benefit sharing of genetic resources. Together, the following form the core of Brazil’s envi- ronmental protection system, supported by civil, administrative and criminal liability, and active pros- ecutorial oversight: • the constitutional right to an ecologically balanced environment; • the PNMA/SISNAMA framework; • the environmental crimes and sanctions regime; and • thematic codes on forests, protected areas, water, air, waste, licensing, and climate. Environmental infractions trigger administrative sanc- tions under Federal Decree No 6,514/2008 and analo- gous state rules: • warnings; • daily and fixed fines; • seizure of goods; • embargo/suspension of activities; and • demolition orders. In addition to administrative sanctions, the party will also be subject to: • environmental civil liability (for damages, including caused to third parties); and, • if an environmental crime was committed, criminal liability (which, differently from general criminal liability, applies to both individuals and corpora- tions). 3.2 Breaching Protections Consequences of a Breach

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BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados

4. Environmental Incidents and Permits 4.1 Investigative and Access Powers Enforcement and Regulatory Powers of Environmental Authorities Environmental authorities may conduct inspections, request information and documents, collect samples, access facilities (including, where necessary, with police support), seize equipment used for infractions, collect the product of said infractions, and impose suspension or embargoes of the activity. They can open administrative proceedings, issue infraction notices, demand corrective measures and even sus- pend or revoke environmental licences and permits. Public prosecutors may open civil inquiries, require expert assessments, and seek court orders for access, evidence production, and injunctive relief. In incidents like oil spills, authorities such as IBAMA, ICMBio, ANP, and maritime authorities co-ordinate response at the federal level (with corresponding environmental authorities at state and municipal lev- els), with emergency plans activated and mandatory communications. 4.2 Environmental Permits/Approvals Environmental Licensing in Brazil Activities that may cause environmental degradation require licensing, generally granted in three stages: • Preliminary Licence (LP) – assesses environmental feasibility and authorises the project to proceed to licensing, without permitting construction; • Installation Licence (LI) – authorises physical con- struction and project implementation according to approved environmental plans; and • Operation Licence (LO) – allows operation, con- firming implementation of mitigation and control measures. Variants such as simplified or concurrent licensing exist for specific sectors under state rules. There is also the Corrective Operation Licence (LOC), which regularises activities initiated without proper licensing. Federal licensing applies when impacts cross state borders, occur in federal areas or facilities, or are oth- erwise under federal jurisdiction. In other cases, states

or, for local impacts, municipalities are competent to license. This distribution follows Complementary Law No 140/2011, CONAMA Resolution 237/1997 and, once enacted, Federal Law No 15,190/2025, which will unify and update licensing rules nationwide. At the federal level, IBAMA Normative Instructions 184/2008 (licensing) and 6/2009 (vegetation suppres- sion and use of forest raw materials) regulate proce- dural aspects. Licensing applications must include baseline studies. For projects with significant potential impact, EIA/ RIMA are mandatory; otherwise, simplified studies or control reports may suffice. Public participation through hearings is required when applicable. The licensing agency must also engage other authorities when the project affects traditional communities (FUNAI for Indigenous peoples, FCP for Quilombola communities) or federal conservation units, endangered species, or caves, as per ICMBio Normative Instruction 16/2025. Projects involving vegetation removal require a spe- cific Authorisation to Suppress Vegetation (ASV), sup- ported by studies and a plan for suppression, disposal and compensatory measures. If the vegetation is to be used, an Authorisation for Use of Vegetable Raw Material (AUMPF) must also be obtained. Decisions by licensing authorities may be appealed administratively within the agency and, once exhaust- ed, through judicial review. Courts, however, review only the legality, not the technical merits, of adminis- trative decisions. Judicial challenges must therefore demonstrate violation of legal norms or procedural defects, not mere disagreement with regulatory dis- cretion. The pending Federal Law No 15,190/2025 aims to establish a unified national licensing system, enhanc- ing legal certainty, efficiency and transparency while maintaining environmental protection and public par- ticipation. It introduces licence types, such as:

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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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BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados

• court-ordered performance; • daily coercive fines; and • recovery/compensatory measures for the damages caused, including to third parties. Recurrent or serious breaches may result in criminal charges against the company and responsible indi- viduals, as well as harder administrative sanctions such as ineligibility for public financing or incentives.

• imprisonment for individuals. Administrative Liability

Administrative liability for environmental infractions is regulated by NEPA (Articles 70–76) and Decree No 6,514/2008, complemented by state and municipal rules. The prevailing interpretation in doctrine and case law (notably the Superior Court of Justice – STJ) is that it is also subjective, as sanctions are punitive in nature. A minority view argues that administrative liability should be strict, except in cases expressly requiring fault (Decree No 6,514/2008, and Law No 9,605/98, Article 72, §3, I–II), such as failure to correct irregulari- ties or obstructing inspections. For liability to apply, there must be: (i) an infraction expressly defined by law (legality principle), and (ii) a direct and immediate causal link between conduct and violation. Sanctions, applied by SISNAMA agencies (feder- al, state or municipal) and certain port authorities, include: • warnings; • fines; • licence suspension; • loss of government benefits; • equipment seizure or destruction; and • partial or total embargoes on the activity. 5.2 Liability for Historical Environmental Incidents or Damage Liability for historical contamination and damage can be imposed on current landowners based on strict, joint and several civil liability and the propter rem nature of these obligations (eg, that they transmit along with the respective title). Successor liability extends to acquirers by merger, acquisition of the company or the establishment/ industrial plant where the activity is operated, or oth- er types of corporate succession, particularly where environmental liabilities are inherent to the asset or activity. Due diligence on these operations does not eliminate environmental liability but informs risk allo -

5. Environmental Liability 5.1 Key Types of Liability Triple and Simultaneous Liability System

Brazilian environmental law establishes three inde - pendent and concurrent forms of liability: civil, admin- istrative, and criminal (Federal Constitution, Article 225, §3). Civil Environmental Liability Civil liability is set by Law No 6,938/1981 (NEPA), complemented by the Civil Code where consistent. It is strict, joint and several, and based on direct and immediate causation between the act or omission and the damage. Under the Integral Risk Theory, tra- ditional exemptions (such as victim fault or third-party acts) do not apply, as polluters are deemed to have accepted environmental risks inherent to their activity. Civil liability requires full redress, prioritising recovery of environmental damage or, when impossible, com- pensation. It is often enforced through public civil actions under Law No 7,347/1985. Regarding the cir- cumstances in which a civil claim for compensation can be brought, see 10.1 Civil Claims . Criminal Liability Criminal liability is governed by the Environmental Crimes Law (Law No 9,605/1998) and applies to both individuals and legal entities. As in general criminal law, it is subjective, requiring proof of fault or intent. Penalties include: • fines; • restrictions of rights; • partial suspension of activities; • temporary debarment from public contracts; and

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BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados

civil and criminal), as explained in 5.1 Key Types of Liability , also apply for corporate entities. In case of criminal liability, the necessary adjustments on potential sanctions are made when the acting party is a corporate entity: imprisonment will not apply but (as per Article 24 of the Federal Law No 9,605/98) the corporation can be subject to the following: • suspension of activities; • embargoes on its establishments; • prohibition to contract with public authorities; and even • forced liquidation if it is proved that the company was created or used preponderantly to make viable, facilitate or conceal environmental crimes. 6.2 Environmental Taxes Activities subject to federal environmental licences will have to pay the Environmental Control and Inspection Fee (TCFA), a tax charged by IBAMA to compensate for the oversight costs of the activity. State and munic- ipal environmental agencies also charge correspond- ing taxes from the activities that fall within their areas of competence. Although not strictly taxes, licensing fees are also paid as part of the respective licensing proceedings. Another relevant tax for environmental preserva- tion is the Environmental Preservation Tax ( taxa de preservação ambiental , or TPA), charged on tour- ists/visitors for access to certain specially preserved areas, usually by the respective municipality where it is located (for the well-known Fernando de Noronha island, the preservation tax is charged by the Pernam- buco State, as per State Law No 10,403/1989). These taxes are used to finance costs related to conserva- tion, cleaning and maintenance of the preserved area. Similar conservation fees are also charged for access to National Parks maintained by ICMBio. Although not strictly a tax (as a tax presupposes a corresponding service to be provided by the respec- tive governmental authority), the use of some natu- ral resources is also subject to specific charges – as a “compensation” for the consumption of such resource. This is the case for water consumption, for

cation and indemnities contractually; however, such private arrangements do not bind authorities or third parties. 5.3 Key Defences Civil environmental liability in Brazil is strict and focused on full reparation of environmental damage. Under the Integral Risk Theory, those who perform an activity assume all risks of environmental harm result- ing from it. Consequently, traditional defences such as exclusive victim fault, third-party acts or force majeure do not apply. The main defence available concerns the absence of causal link between the activity and the damage, as liability still requires direct and immedi- ate causation (NEPA, Article 14, combined with Civil Code, Article 403). As to administrative liability, the prevailing under- standing is that it is subjective, requiring proof of: • conduct with fault or wilful misconduct; • correspondence between the facts and the legal infraction; and • direct and immediate causality between them. Typical defences challenge one of these elements or raise procedural objections, such as due process violations, lack of jurisdiction, or improper sanction- ing authority. Parties may also argue disproportional- ity between the infraction and the penalty, or present evidence of compliance and mitigation efforts to seek sanction reduction. The existence of environmental compliance pro- grammes, use of best available techniques, and prompt remediation or mitigation of damages can reduce penalties, particularly when formalised through Conduct Adjustment Terms (TACs) with public authori- ties. 6. Corporate Liability 6.1 Liability for Environmental Damage or Breaches of Environmental Law The rules and requisites for the triple simultaneous and independent system of liability (administrative,

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