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Why the New Environmental Licensing Law Creates Such Controversy in Brazil – And Why Some Call It the “Devastation Law”

Published on 13/11/2025 at 09:44
Updated on 13/11/2025 at 10:18
Lei do Licenciamento Ambiental
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Approved After Two Decades of Debates, the New Environmental Licensing Law Divides Opinions Between Those Who See Regulatory Advancement and Those Who Fear Ecological Setback

With the promulgation of the Constitution of the Federative Republic of Brazil of 1988 (CRFB/88), the environment began to have unprecedented state protection mechanisms, signaling a new era of shared responsibility. The Magna Carta sought to balance two fundamental pillars – the incentive for agricultural production and environmental preservation. Since then, the country has been trying to reconcile these interests, facing dilemmas that resurface with each new attempt at regulation.

The Dilemma Between Production and Protection

Article 23 of the Federal Constitution defines that the Union, States, Federal District, and municipalities must act jointly in defense of the environment, combating pollution and preserving wildlife and flora.

However, the same text also determines the incentive for agricultural production and food supply.

This overlap of objectives has generated a permanent point of tension since 1988. While one side argues that production needs freedom to ensure economic growth, the other argues that uncontrolled development jeopardizes natural resources.

The lack of clear rules has therefore become a historical challenge.

Sustainable Development and the International Context

In 1992, the United Nations Conference on Environment and Development, ECO-92, gathered 178 countries in Rio de Janeiro. The event was a milestone because it consolidated the concept of sustainable development.

The principles established, such as the right of each country to explore its resources (Principle 2) and the need to balance progress and preservation (Principle 3), influenced global environmental policy.

They also reinforced that the environment must be integrated into the development process (Principle 4), connecting environmental, social, and economic dimensions.

The Convergence with the 1988 Constitution

Four years before ECO-92, the Brazilian Constitution already anticipated this integrated vision. It recognized that development and preservation are not exclusive but complementary.

This constitutional basis paved the way for infraconstitutional laws that regulated the rational use of natural resources.

Therefore, when Congress resumed the discussion on environmental licensing, the debate rekindled old disagreements.

The country needed a norm that modernized the system without weakening environmental protection.

The Arrival of the New Law and the Beginning of the Controversy

After twenty-one years of processing, the National Congress approved, on July 16, 2025, Bill No. 2159/21, known as the Environmental Licensing Law.

The text regulates item IV of §1 of Article 225 of the Constitution and alters previous norms.

The objective is to simplify and unify procedures, ensuring more agility and legal certainty. However, the proposal divided opinions.

For supporters, the new law represents a landmark of modernization; for critics, it is a setback dubbed the “Devastation Bill.”

What Changes with the New Licensing

Until then, the rules were based on resolutions from the National Environment Council (CONAMA), without a general law that defined uniform guidelines. This generated insecurity and divergences among states.

The new text creates four main licensing modalities:

  • Single Environmental License (LAU) – encompasses installation, operation, and monitoring in a single step.
  • License by Adherence and Commitment (LAC) – allows the entrepreneur to declare compliance with pre-established requirements.
  • Corrective Operation License (LOC) – regularizes activities that already operate without a license.
  • Special Environmental License (LAE) – aimed at large strategic enterprises.

These models seek to reduce bureaucracy, especially for low environmental impact enterprises.

Licensing Waivers: The Most Sensitive Issue

Articles 8 and 9 of the project define cases in which licensing can be waived, such as emergency works, actions to prevent environmental damage, and infrastructure maintenance. There are also exceptions for some agricultural activities.

Critics fear that these waivers open space for irregularities, arguing that technical criteria can be manipulated.

Proponents argue that the exceptions are specific and necessary to expedite essential processes.

The text, however, includes safeguards. §3 of Article 9 makes it clear that the waiver is not a free pass: the entrepreneur remains obliged to comply with other authorizations required by law.

The Focus on Basic Sanitation

A point of consensus appears in Article 10, which prioritizes the licensing of basic sanitation projects.

The norm even allows for a temporary waiver of license to expedite works until universalization goals are reached.

Experts point out that this measure can reduce inequalities, as sanitation is one of the most underdeveloped areas in the country. Still, the challenge lies in ensuring that agility does not compromise environmental control.

Environmental Licensing Law: Advancement or Setback?

The new Environmental Licensing Law synthesizes the Brazilian dilemma: how to balance economic growth and environmental protection.

On one side, there are those who see the law as a necessary advancement to unlock investments and standardize rules. On the other, there are those who see it as a weakening of environmental control.

The real impact will depend on practical application. States and municipalities will play a decisive role in regulation and enforcement.

If applied responsibly, the law can represent an important step toward sustainable development – the one that Brazil has promised since 1988 but still struggles to turn into reality.

With information from Migalhas.

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Romário Pereira de Carvalho

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