Brazil's Lula enacts environmental licensing law, vetoes 63 provisions to protect Amazon

Brazilian President Luiz Inácio Lula da Silva signed into law a controversial bill easing environmental licensing rules but vetoed 63 of its nearly 400 provisions to preserve the licensing process's integrity and protect indigenous and Quilombola rights. The original bill, backed by agribusiness but criticized by environmentalists as the "Devastation Bill," grants increased authority to states and municipalities, potentially facilitating business expansion in ecologically sensitive areas such as the Amazon rainforest. Lula's vetoes blocked measures that would have fast-tracked high-pollution projects and limited federal oversight, with only low-polluting enterprises allowed expedited licensing. To address gaps created by these vetoes and avoid legal uncertainties, the government plans to submit new legislation to Congress under a constitutional urgency procedure and has enacted a provisional measure for immediate effect of a Special Environmental License. Environmental groups welcomed the vetoes, though Congress could still override them, while government officials emphasized maintaining dialogue with Congress and safeguarding environmental protections ahead of Brazil's hosting of U.N. climate talks. The balance Lula seeks reflects competing pressures from environmental concerns and agribusiness interests within Brazil's complex political landscape.