On 21 May, the Federal Senate approved Bill 2.159/2021, creating the General Environmental Licensing Law (LGLA). The proposal aims to standardise procedures and consolidate general licensing rules throughout the country.
As the text has been amended, it now returns to the Chamber of Deputies for further consideration.
The bill introduces new instruments and significant amendments:
- Special Environmental Licence (LAE): aimed at strategic projects, with faster processing (maximum 1 year).
- Licence by Adhesion and Commitment (LAC): aimed at low-impact activities and based on self-declaration. It does not apply to cases involving deforestation.
- Enterprise Characterisation Report (RCE): now requires more data on land use.
- Automatic renewal will only be permitted for low-impact projects without changes.
- Tougher penalties for infractions: construction work without a licence can result in a prison sentence of between six months and two years, doubled in more serious cases.
MJAB Insights: The proposal has been the target of criticism from the Ministry of the Environment, which claims it poses a risk of dismantling the current system. The most controversial aspects include the expansion of exemptions from environmental licensing requirements and the limitations on the mandatory preparation of environmental impact assessments.
The legislative process in the Chamber of Deputies is expected to be contentious, facing strong opposition from environmental groups and opposition parties.
On the other hand, the bill represents a significant regulatory development. The proposed systematization could enhance legal predictability, reduce litigation, and unlock investments in sectors such as energy and infrastructure.
If ultimately approved, the new regulatory framework may establish a more robust balance between development and environmental protection, potentially becoming a benchmark for a more efficient and secure environmental licensing model in Brazil.