Environmental Licensing in Brazil: When It’s Required and How to Get It

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

Learn when environmental licensing is required in Brazil and what the steps of the process are.

What it is and when it is required

Environmental licensing is the administrative procedure through which the environmental agency authorizes the siting, construction, expansion, and operation of projects and activities that use environmental resources or may cause environmental degradation. It is required for industrial plants, mining, infrastructure works, land subdivisions, large-scale farming and ranching operations, gas stations, and others. Operating without a license can lead to fines, a shutdown order for the activity, and criminal liability.

Operating without a license can lead to fines, a shutdown order for the activity, and criminal liability.

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Who issues the environmental license?

It depends on the impact. IBAMA (Brazil’s Federal Environmental Agency) licenses projects with national or regional impact. State agencies license activities with state-level impact. Municipalities license activities with local impact.

Steps of the licensing process

The three-phase licensing process involves the following: the Preliminary License (LP), which approves the environmental viability of the project; the Installation License (LI), which authorizes construction in accordance with the conditions imposed; and the Operating License (LO), which authorizes operation after the agency verifies that the requirements have been met. Each phase may call for specific environmental studies, such as the EIA/RIMA (Environmental Impact Study and Environmental Impact Report).

Frequently Asked Questions

Which projects need environmental licensing?

Projects and activities that use environmental resources or may cause environmental degradation need licensing. The procedure is handled by the competent environmental agency, which authorizes the siting, construction, expansion, and operation of these activities.

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What are the steps of environmental licensing?

Environmental licensing involves three main licenses: the Preliminary License (LP), which approves the location and concept of the project; the Installation License (LI), which authorizes construction; and the Operating License (LO), which allows the activity to begin operating.

What happens if you operate without an environmental license?

Operating without an environmental license is a crime under Law 9.605/98, punishable by detention and a fine. In addition to criminal liability, the operator is subject to administrative sanctions, such as shutdown orders and fines imposed by environmental agencies, and to the obligation to repair the damage caused.

Types of Environmental Licensing

Environmental licensing in Brazil is divided into three main phases, each corresponding to a specific license. The Preliminary License (LP) is granted during the early planning stage of a project and certifies its environmental viability. The Installation License (LI) authorizes the start of construction and installation of the project, subject to the conditions set. Finally, the Operating License (LO) allows the activity to operate, after verification that all requirements have been met.

Authority to grant the license may be federal, state, or municipal, depending on the scope of the activity’s environmental impact. The Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA) is responsible for projects with national or regional impact, while state and municipal agencies handle smaller-scale projects.

Failing to comply with licensing conditions, or operating without a valid license, is an environmental crime under Law 9.605/1998. Penalties include fines of up to R$ 50 milhões, a shutdown order for the activity, and even criminal liability for the company’s executives.

Legal Basis

Environmental licensing rests on the National Environmental Policy (Law 6.938/1981), CONAMA Resolution 237/1997, and Complementary Law 140/2011, which defines the powers of each level of government. Article 225 of the Federal Constitution establishes the right to an ecologically balanced environment and imposes on the government and the community the duty to protect it.

Liability for Environmental Damage

Liability for environmental damage in Brazil is strict, meaning that fault does not need to be proven. It is enough to show a causal link between the conduct and the harm to the environment for the duty to repair it to arise. This liability may fall on individuals and legal entities, including executives and managers who took part in a decision that harmed the environment.

Law 9.605/1998 (the Environmental Crimes Law) sets criminal and administrative penalties for conduct that harms the environment. Penalties range from fines to imprisonment, depending on the seriousness of the damage. Criminal liability of legal entities is a distinctive feature of Brazilian environmental law, allowing companies to be criminally prosecuted for harming the environment.

In addition to criminal liability, there is an obligation to provide full reparation for environmental damage. The offender must restore the degraded environment to its prior condition where possible, or compensate for damage that cannot be reversed. The Public Prosecutor’s Office (Ministério Público) is the main party with standing to bring public civil actions to protect the environment, and it may enter into Conduct Adjustment Agreements (Termos de Ajustamento de Conduta, or TAC) with offenders.

Enforcement and Competent Agencies

Environmental enforcement in Brazil is carried out by the National Environmental System (SISNAMA), made up of IBAMA (at the federal level), the state environmental agencies (OEMAs), and the municipal environment departments. Each agency acts within its own sphere of authority, as defined by Complementary Law 140/2011.

Enforcement officers have administrative police power to issue notices of violation, seize products and equipment used in illegal activities, shut down irregular projects and activities, and impose fines of up to R$ 50 milhões, under Decree 6.514/2008. Anyone can report environmental crimes to IBAMA, to state agencies, to the Public Prosecutor’s Office, or through the Green Line (0800-618080).

Environmental Impact Studies

For projects that could cause significant environmental degradation, the law requires an Environmental Impact Study (EIA) and the corresponding Environmental Impact Report (RIMA). These documents assess the positive and negative effects of the project on the environment and propose mitigation and compensation measures.

The EIA must be prepared by a qualified multidisciplinary team, paid for by the project developer, and must include an environmental diagnosis of the area of influence, an analysis of the environmental impacts and alternatives, the definition of mitigation measures, and the development of monitoring programs. The RIMA is a simplified, accessible version of the EIA, intended for public consultation.

For lower-impact activities, the environmental agency may require simplified studies, such as the Simplified Environmental Report (RAS) or the Environmental Control Report (RCA). The type of study required depends on the nature, size, and pollution potential of the activity, as determined by the competent environmental agency.

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.