If Approved, Environmental Licensing Bill Will Go Against the Financial Regulation

Congresso em Foco, André Lima in 25/11/2021

On September 15th, the Brazilian Central Bank published a series of norms that deepen the integration of social and environmental aspects in the risk management of banks and other financial institutions. With this measure, climate risks and opportunities received greater attention, but innovations go much further.

However, the Environmental Licensing Bill (PL 3.729/2004) approved by the Chamber in May this year and currently under review by the Senate (PL 2.159/21) represents a strong divergence from the new rules. If approved, the project will represent a severe threat to sustainable development and weaken environmental licensing.

The project does not require licensing in situations of very high environmental risk, as well as does not need to carry out an Environmental Impact Study in situations also of high risk, by fitting them into the so-called “License for Adhesion and Commitment” without establishing any quantitative or qualitative limit for this enlargement.

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