Brazil signs environmental bill with vetoes

Lula preserves some protections but keeps room for development by vetoing key provisions, triggering mixed reactions

Brazil signs environmental bill while vetoing key protections

Brazil's president Luiz Inácio Lula da Silva has signed into law a controversial environmental bill on the deadline day. He struck down or amended 63 of the 398 provisions, removing several elements seen as the most damaging to the licensing framework. Notably, a self-declared online licensing path for projects with medium environmental impact was blocked, and a clause that could have limited Indigenous and Quilombola participation in licensing decisions was vetoed.

Despite these changes, Lula preserved a fast track option for strategic or priority projects, a move environmentalists say could still push development forward at the expense of stricter scrutiny. His ministers argued the revision balances streamlined rulemaking with essential safeguards, a claim echoed as they defended the government’s stance in Brasília. Environmental groups welcomed the vetoes but warned they will continue to scrutinize the remaining provisions and press Congress to uphold the gains.

The veto acts as a delicate balancing act. By discarding the most restrictive clauses, Lula signals a commitment to climate goals while avoiding a full clash with powerful industrial interests. Yet the retention of a fast-track mechanism and the political reality of an opposition-controlled Congress means the law could still be reshaped in ways that loosen protections. The timing matters too: critics warn that a move seen as lenient could undermine Brazil’s credibility ahead of the Cop30 summit, even as supporters frame it as necessary pragmatism in a country watching deforestation targets and emissions commitments.

Highlights

The next weeks will show whether vetoes hold under congressional pressure