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Historic Decision Reinforces Combat Against Coal and Accelerates Energy Transition in Brazil
The Federal Justice of Rio Grande do Sul decided, on July 28, 2025, to suspend the operating license of Candiota III Thermal Power Plant in Bagé (RS). The ruling recognizes the significance of the studies by the International Institute Arayara and imposes new conditions for the operation of the plant, considered one of the largest coal-fired plants in the country.
Legal and Environmental Context
The decision came from the 9th Federal Court of Porto Alegre, in case No. 5001956-25.2024.8.13.0086, filed by the Preserve Institute, the Gaucho Association for the Protection of the Natural Environment (Agapan), and the Friends of the Earth – Brazil Group. The action was joined to case No. 5007143-39.2025.4.04.7110, filed by the International Institute Arayara, which had its preliminary request fully granted.
The judicial order also cited the Direct Action of Unconstitutionality (ADI) No. 7095, presented by Arayara in conjunction with political parties at the Federal Supreme Court (STF), against provisions of Federal Law No. 14.299/2022, which created the Just Energy Transition (TEJ) Program.
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In this way, the Justice recognized the climate inaction of the government and ordered the suspension of licenses for coal plants and mines in the state. Thus, the decision directly impacts the Candiota III Power Plant, marking a significant milestone for the environmental movement.
Determinations Imposed by the Ruling
The court ruling determined that the plant can only resume operations after the full compliance with environmental conditions established by the competent authorities. Furthermore, ANEEL and the Federal Union are prohibited from granting any commercial authorization while there is no valid license.
Similarly, a non-acting obligation was imposed on the company Âmbar Energia, responsible for the project, or any successor, prohibiting operations without regular authorizations and in compliance with current environmental legislation.
Repercussions of the Decision
According to lawyer Marina Dermmam, from the MDRR Advocacy and Human Rights office, the ruling represents a milestone:
“This decision marks the end of the era of inaction and establishes that the Brazilian State has a legal obligation to implement serious climate mitigation measures. The right to life, health, and a balanced environment prevails over immediate economic interests”, she stated.
The injunction strengthens ongoing actions led by Arayara and recognizes the organization’s efforts to articulate scientific research, technical analysis, and strategic litigation in defense of the environment and public health.
Political and Social Impact
The president of Arayara, Juliano Bueno de Araújo, emphasized that the ruling is a milestone in the global fight against coal in Brazil, led by the organization and the Coal Mining Observatory for over two decades.
He also noted that the decision reinforces the urgency to accelerate the just energy transition, increasing investments in renewable energy and decreasing reliance on highly polluting fossil fuels.
According to Araújo, this is the biggest climate victory of Brazil in 2025, especially in a year when the country prepares to host COP30 in November in the city of Belém (PA).
Key Points of the Decision
- Suspension of the Operating License of the Candiota III Power Plant;
- Full compliance with environmental conditions as a requirement for resuming operations;
- Prohibition on ANEEL and the Federal Union from authorizing commercial operation without a valid license;
- Prohibition for Âmbar Energia or its successor to operate without regular authorizations;
- Recognition of Arayara’s studies as the technical basis for the decision;
- National legal precedent in defense of energy transition and climate justice.
Connection to the Global Climate Agenda
Finally, the ruling coincides with the period in which Brazil takes a central role in the international climate debate. With COP30 scheduled for November 2025, the Federal Justice decision reinforces the need to accelerate the energy transition and demonstrates that the country is being pressured to align internal policies with global commitments.
Thus, the suspension of the license for Candiota III Power Plant marks a significant advancement of civil society in defending a clean, just, and sustainable energy model, reinforcing the importance of joint mobilization among organizations, social movements, and legal institutions.
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