Brazil Congress Eases Environmental Permits, Setting Up Lula Veto Test Before COP30

Brazil’s lower house approved a sweeping overhaul of environmental licensing rules in the early hours of 17 July, endorsing the Senate-backed text by 267 votes to 116. The legislation, known as PL 2.159/2021, now heads to President Luiz Inácio Lula da Silva, who has 15 working days to sign or veto it. The bill allows projects deemed to have small or medium environmental impact—such as dams, sanitation works and some mining operations—to proceed without a full licence and introduces a fast-track “Licença Ambiental Especial” for ventures classified as strategic. An amendment also lets the federal government accelerate authorisations in projects of national interest, a change seen as paving the way for an Amazon highway and offshore oil drilling near the mouth of the Amazon River. Environment Minister Marina Silva called the measure a “dismantling” of Brazil’s licensing system, while Indigenous Peoples Minister Sônia Guajajara warned it sends the wrong signal ahead of the United Nations COP30 summit that Brazil will host in Belém this year. Greenpeace, Observatório do Clima and other NGOs said the text represents the biggest rollback of environmental protections in four decades. Left-wing parties have vowed to challenge the bill’s constitutionality at the Supreme Federal Court if Lula signs it, and some cabinet members are urging a full presidential veto. Supporters—including the powerful agribusiness caucus—argue the reform will cut red tape and spur investment. A veto battle would test Lula’s climate agenda and political capital just months before he seeks to showcase Brazil’s green leadership on the world stage.