How Brazil's 'devastation bill' puts Amazon at risk of deforestation

RIO DE JANEIRO - Brazilian President Luiz Inácio Lula da Silva has signed into law a bill easing environmental licensing rules for projects that could accelerate deforestation in the world's largest tropical rainforest.

Dubbed the "devastation bill" by critics, the law dismantles environmental protections that have forestalled developing ecologically sensitive areas and required companies to avoid or compensate for projects' impact on nature.

Lula approved the bill, passed by Congress last month, on Aug. 8.

But he also struck down or altered 63 of its nearly 400 provisions, which the government says will uphold environmental protections and the rights of Indigenous and "quilombola," or African-descent, communities.

Congress now has 30 days to uphold or overturn Lula's changes, while his administration prepares a separate bill to fill legal gaps created by the vetoes.

Here's what you need to know:

How does the law change Brazil's environmental licensing process?

The latest form of the law maintains a fast-track special licensing process for projects deemed "strategic" by the government. Those may now be appraised within a one-year deadline.

Lula also issued a separate measure that puts that provision into effect immediately, pending Congressional approval.

John Wurdig, energy transition manager at the environmental nonprofit Arayara International Institute, said the special licensing process creates a new type of "license through political pressure".

Among the sections that Lula vetoed was a "self-licensing process" that allowed companies to obtain permits for medium-impact projects by filling out an online form and declaring their commitments to meet environmental requirements.

He also struck down a move to lift licensing requirements for areas that affect Indigenous and quilombola territories that are not fully recognised.

Lula's changes would also uphold protections for thousands of natural reserves.

Who backs the bill, and who opposes it?

The law was passed with support from the powerful agribusiness-aligned caucus and has been praised by the mining sector.

Lula was criticised by environmentalists for his public silence as the bill advanced in Congress, while his energy, transportation and agriculture ministers showed support for it.

Environment Minister Marina Silva opposed the bill during the debate in Congress, but last week said that Lula's changes could "uphold the integrity of environmental licensing".

The new special licensing process formalises what "already happens in practice," she said, such as when Amazon mega dams were fast-tracked in the 2000s in a bid to avoid electricity shortages.

The Coordination of Indigenous Organisations of the Brazilian Amazon has voiced support for Lula's changes, demanding Congress "uphold the presidential vetoes" and the federal government not "back down in face of pressures from private sectors".

Which projects could benefit from the new rules?

The law may help unlock controversial projects, such as state-run oil firm Petrobras' bid to drill for oil at the mouth of the Amazon river, which environmentalists say could unleash an oil rush in the region.

It could also speed up the repaving of an 885-km (550 miles) road across one of the best preserved tracts of the Brazilian rainforest and the Ferrogrão railway, which international traders want built to transport grains through the forest for export.

These projects, all backed by Lula, have faced licensing and legal hurdles for years.

If they are now given the go-ahead, they would open up untouched areas in the Amazon and drive deforestation, according to analyses from environmental groups, such as Instituto Socioambiental and the BR-319 Observatory.

What could this mean for the Amazon and climate change?

Developing parts of the rainforest and other ecologically sensitive areas in Brazil threatens to accelerate deforestation, endanger minority communities and undermine the fight against climate change, experts say.

Brazil, host of the COP30 climate change summit this November in the Amazon city of Belém, was the world's sixth largest carbon emitter in 2023, the World Resources Institute has said.

Most emissions are due to clearing natural vegetation, including forests, to make way for farms, as well as methane emissions from a 240 million-strong cattle herd, according to Brazil's Climate Observatory SEEG system.

Scientists say deforestation and degradation are compounding the effects of climate change and turning vast swaths of the Amazon into drier, degraded ecosystems.

Record wildfires in 2024 worsened the situation, accelerating carbon emissions, climate change and further forest loss.

This story was updated on Tuesday, August 12, 2025, to reflect the latest developments.

(Reporting by Andre Cabette Fabio; Editing by Anastasia Moloney and Ellen Wulfhorst.)