Brazil’s President Lula vetoes parts of environmental ‘devastation bill’

Brazilian President Luiz Inacio Lula da Silva has signed into law a bill easing environmental licensing rules, but bowed to pressure from activist groups as he vetoed key provisions that would have made it easier for companies to secure environmental permits.

Lula approved on Friday what detractors have dubbed the “devastation bill”, but struck down or altered 63 of its nearly 400 articles, his office’s executive secretary, Miriam Belchior, told reporters.

The president had faced mounting pressure from environmental groups to intervene in the bill, which was backed by Brazil’s powerful agribusiness sector and focused on rolling back strict licensing rules that had kept the destruction of the Amazon rainforest in check.

A previous version of the bill adopted by lawmakers last month would have meant that for some permits, all that would have been required is a simple declaration of the company’s environmental commitment.

Lula’s revisions, however, reinstated the current strict licensing rules for strategic projects.

Belchior said the new proposal sought to preserve the integrity of the licensing process, ensure legal certainty, and protect the rights of Indigenous and Quilombola communities.

She added that Lula will introduce a “Special Environmental Licence” designed to fast-track strategic projects while filling the legal gaps created by the vetoes.

“We maintained what we consider to be significant advances in streamlining the environmental licensing process,” she said.

Nongovernmental organisation SOS Atlantic Forest, which garnered more than a million signatures calling for a veto of the law, hailed Lula’s move as “a victory” for environmental protection.

Of the provisions struck down by Lula, 26 were vetoed outright, while another 37 will either be replaced with alternative text or modified in a new bill that will be sent to Congress for ratification under a constitutional urgency procedure.

Securing support for the amendments is far from guaranteed for the leftist leader. Brazil’s conservative-dominated Congress has repeatedly defeated key government proposals, including overturning previous presidential vetoes.

Lawmakers aligned with embattled ex-president Jair Bolsonaro are also blocking legislative activity amid an escalating political standoff, as they call for the former president’s charges around an alleged failed coup attempt in 2022 to be dropped.

Speaking at a Friday news conference in the capital, Brasilia, Environment Minister Marina Silva maintained a positive tone, telling reporters that Lula’s vetoes would ensure that “the economy does not compete with ecology, but rather they are part of the same equation”.

“We hope to be able to streamline licensing processes without compromising their quality, which is essential for environmental protection at a time of climate crisis, biodiversity loss and desertification,” said Silva.

Silva said a previous version of the bill, approved by Congress last month, threatened the country’s pledge to eliminate deforestation by 2030 and described it as a “death blow” to Brazil’s licensing framework.

But, she said, Lula’s revised version meant Brazil’s “targets to reach zero deforestation” and its goal to “cut CO2 emissions by between 59 percent and 67 percent remain fully on track”.

Lula’s environmental credentials are under close scrutiny in advance of the annual UN climate summit in November in the Amazon city of Belem.