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"PL of Devastation" : Brazil’s Environmental Rollback and Its Consequences

The PL (Project of Law) 2.159/2021, dubbed the “PL da Devastação”, marks the most significant environmental deregulation in Brazil in decades. With sweeping changes to the country’s licensing system, its passage raises urgent concerns for communities, investors, and Brazil’s global reputation.

LEGISLATIVE POWER

M.A.L.

7/18/20252 min read

What Is the "PL da Devastação" (Devastation)?

Simplified licensing: Introduces the License by Adherence and Commitment (LAC), allowing companies to self-license major projects via form submission—bypassing technical impact analysis.
Special executive license (LAE): Empowers the federal government to fast-track ‘strategic’ projects, regardless of environmental risk.
Reduced oversight: Weakens environmental bodies (SISNAMA, Conama, ICMBio, FUNAI), allowing firms to act with less supervision .
Indigenous and quilombola lands at risk: Removes license requirement from non-demarcated territories.

Why and For Whom?

Ruralist caucus agenda: The push for deregulation stems from agribusiness, mining, and construction lobbies, promising faster approvals and fewer bureaucratic hurdles.
Claimed efficiency: Advocates argue the bureaucracy is so convoluted it stifles development—claiming PL modernizes licensing and reunclogs infrastructure projects .
Opposition from civil society: Environmental NGOs, indigenous groups, CNDH, and Church leaders denounce the law, citing risks to forests, climate, and human rights .

Legislative Journey and Voting

Senate passage (May 2025): Approved decisively by a 54–13 margin, backed by ruralist and centrist coalitions.
Chamber approval (July 17, 2025): Passed early morning, 267 votes in favor, 116 against. Majority of PT, PSOL, Rede, PDT, and PSB opposed.

Social and Environmental Realities

Immediate risks: Communities in the Amazon, Cerrado, Pantanal face direct threats as environmental assessments are bypassed.
Tribal communities debilitated: Indigenous and quilombola lands lose protections and access to consultation, violating international conventions
History could repeat itself: Experts warn of tragedies akin to Mariana and Brumadinho if safeguards are dismantled.

Impacts on Investors and Economy

Risks for Foreign Capital:

Reputational damage: Deregulation may alienate ESG-focused investors and institutions committed to environmental stewardship.
Legal uncertainty: Autolicensing generates confusion: will investors face lawsuits or community resistance post-approval?
Market response: International partners may apply tariffs or sanctions to Brazilian exports linked to deforestation or degraded practices.

For Local Communities:

Economic opportunity vs. environmental harm: While supporters promise growth via agribusiness acceleration, local populations risk water scarcity, pollution, and disrupted livelihoods.

Brazilian Democracy Tested

Mobilization of civil society: Demonstrations, social media campaigns, and parliamentary pressure—groups like CNDH and CPT are pushing for Lula’s veto.
Checks and balances: With impending veto/pocket veto or presidential signature, Brazil’s democratic mechanisms are being tested in real time.
Global spotlight: As Brazil prepares to host COP30 in Belém—less than four months away—the international community is watching.

What Comes Next?

Presidential decision: President Lula has 15 business days to approve or veto. Pressure mounts from both sides.
Judicial review expected: Major NGOs’ve already signaled plans to sue, alleging constitutional and environmental law violations .
Public and investor attention: This moment may shape Brazil’s environmental and economic trajectory—and define the resilience of democratic oversight.