Brazil Senate Passes Bill Loosening Environmental Licensing

Brazil's Senate has passed a controversial environmental licensing bill aimed at streamlining and standardising procedures, particularly to expedite oil exploration projects like those planned by Petrobras in the Amazon region. The legislation introduces a new simplified licensing category for government-prioritised projects with a capped one-year review, exempts certain agricultural projects from licensing, and allows small and medium projects to self-declare environmental compliance. Supporters, including the agribusiness caucus and some government figures, argue the bill reduces bureaucratic delays and legal uncertainties, facilitating responsible development. However, critics—including environmental groups like Greenpeace and Observatorio do Clima, and figures within President Lula's government—warn the bill could lead to environmental degradation, undermine protections, and marginalize vulnerable communities by bypassing comprehensive impact assessments. The bill highlights divisions within Brazil's government on environmental policy ahead of the COP30 climate summit and now awaits further consideration in the lower house. Experts emphasize the need for a balanced approach to licensing that avoids both excessive rigidity and harmful leniency to ensure sustainable development.