Climate Change

Balancing Climate Leadership with Domestic Drilling and Licensing Debates

Brazilian President Luiz Inacio Lula da Silva was present at a meeting of the Council for Sustainable Economic and Social Development in Brasilia on August 5, 2025. His actions regarding environmental policy are under close observation, especially as Brazil prepares to host the upcoming UN climate summit in November in Belem.

Lula's environmental policies have drawn both praise and criticism. While aiming to be a global leader on climate change, he has faced domestic criticism for supporting drilling in the Equatorial Margin, off Brazil's northern coast. He defends this decision, citing the need for oil revenue to fund the country's energy transition.

A recently adopted bill, criticized as the "devastation bill," aimed to relax environmental licensing laws for projects deemed "strategic." The original bill would have allowed companies to simply declare their environmental commitment for some permits. Lula, however, reinstated the existing strict licensing rules for strategic projects, including a controversial oil mega-project near the Amazon River's mouth. He also set a one-year deadline for these projects to be approved or rejected.

Furthermore, Lula's veto ensures continued special protection for several Indigenous territories and the Atlantic Forest. Environmental groups, such as SOS Atlantic Forest, celebrated his decision as a victory for environmental protection. Greenpeace also commended the president's actions. However, some Indigenous rights groups expressed disappointment that the entire bill was not struck down.

Lula's veto now requires ratification by Congress, which is largely controlled by conservative lawmakers. Environment Minister Marina Silva stated that Lula's goal is to ensure that the economy and ecology are not in conflict, but rather work together.

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