The Federation of Brazilian Banks (“FEBRABAN“) has recently approved Regulation No. 026/2023, setting forth guidelines and procedures for Brazilian banks when financing the beef industry, particularly slaughterhouses. Pursuant to the new self-regulation, as of 2025 financing should only be available to slaughterhouses that put into place a due diligence system for tracing and monitoring the activities of direct and indirect suppliers, certifying that no illegal deforestation has occurred in its supply chain. The self-regulation only applies to slaughterhouses located in the states that compose the “Amazônia Legal” and the state of Maranhão.Continue Reading Federation of Brazilian Banks tackle illegal deforestation in the beef supply chain
On December 27, the Brazilian Presidency issued Provisional Measure No. 1,151/2022, which, among other provisions, amended Laws No. 11,284/2006 (Public Forests Management Act) and 11,516/2007 (ICMBio Creation Act) to enable the development of carbon credit projects and other environmental services in conservation units, through concessions.
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On 29 June 2022, the Brazilian Superintendence of Private Insurance (“SUSEP”) published Regulation No. 666/2022, setting forth sustainability requirements applicable to the Brazilian insurance sector. Its goal is to establish guidelines for management of risks that are directly related to ESG policies of insurance and capitalization companies, local reinsurers and pension funds.Continue Reading Brazilian insurance regulator publishes guidelines on sustainability requirements for the insurance sector
On 1 July 2022, the Brazilian Supreme Court issued a ruling on ADPF 708 (Ação de Descumprimento de Preceito Fundamental), which is another climate litigation case under the court’s scrutiny (please read here and here for more information about other climate litigation cases submitted to the Brazilian Supreme Court). In summary, political parties filed ADPF 708 in June 2020, claiming the Brazilian Federal Administration had not taken appropriate measures to ensure allocation and use of funds from the Brazilian Climate Fund, which is supposed to play an important role in “climate financing”, pursuant to the Paris Agreement, by supporting climate change mitigation projects in Brazil.Continue Reading BRAZILIAN SUPREME COURT RECOGNIZES THE PARIS AGREEMENT AS A HUMAN RIGHTS TREATY
On June 21, 2022, an NGO filed a first-of-its-kind climate change lawsuit against an investment bank in Brazil. Among other claims, the NGO asserts that the bank allegedly maintains equity positions in sectors considered to be the most carbon-intensive, and, based on such allegation, the plaintiff asks the court to compel the bank to prepare…
In a previous blog post that can be read here, we provided an overview on how – for the first time – the Brazilian Supreme Court had trial sessions scheduled in connection with several climate litigation cases, starting on 30 March 2022, covering ADIs (Ação Direta de Inconstitucionalidade), ADOs (Ação Direta de Inconstitucionalidade por Omissão) and ADPFs (Ação de Descumprimento de Preceito Fundamental), all of which are types of lawsuits that seek to address Constitutional violations. Two months later, five lawsuits of the so-called Supreme Court’s “green agenda” have gone through trial and three have been ruled on.Continue Reading Climate Litigation and the Brazilian Supreme Court: A Follow-Up on the “Green Agenda” and the Trial Sessions That Took Place in April and May
On May 19, 2022, the Brazilian Federal Government published Decree No. 11,075/2022 (“Decree”), which establishes the National Greenhouse Gas Emissions Reduction System and the related procedures for the implementation of the Sectoral Plans for Climate Change Mitigation. The Brazilian National Policy on Climate Change (Federal Law No. 12,187/2009) mentions the implementation of such…
On March 21, 2022, the Brazilian Government launched a new package of incentive measures seeking to stimulate programs and actions to reduce methane emissions, particularly through development of biogas and biomethane initiatives. The new package – called Federal Strategy of Incentive to the Sustainable Use of Biogas and Biomethane – includes the Methane Zero National Program and is aligned with the commitments made by Brazil in the context of COP26, the Global Methane Pledge and other domestic regulatory efforts, such as the National Policy on Waste Management.
Continue Reading Brazil launches Methane Zero National Program with a package of incentive measures to biogas and biomethane
Amidst the recent uptrend of climate litigation cases in Brazil, the Brazilian Supreme Court has scheduled for March 30, 2022 a trial session covering several different lawsuits involving the protection of the environment and effects on climate change. This is an important milestone for the Brazilian climate litigation landscape, as this is the first time a Supreme Court session will be exclusively dedicated to climate-themed cases.
Continue Reading Brazilian Supreme Court Climate Litigation Day: Justices to Decide Several Climate Litigation Cases on March 30
The Brazilian Securities Commission (CVM) issued, on December 22, 2021, CVM Resolution No. 59 (RCVM 59), which amends CVM Rule No. 480 (CVM Rule 480). This new normative arises from Public Consultation No. 09, closed in March 2021, and brings substantial innovations on the informational regime for issuers of securities. Indeed, the reform promotes a reduction in the cost of compliance for issuers and greater accessibility of information to investors by eliminating redundancies and simplifying the content required in the Reference Form, the main document of publicly-held companies in Brazil.
However, most importantly, through RCVM 59, CVM in an unprecedented way establishes criteria and requirements for the disclosure of information on environmental, social and governance aspects, which was previously a mere deliberation of issuers to attract investors engaged in ESG aspects, and it was not foreseen in any regulation of the autarchy.Continue Reading Brazilian Securities Commission Establishes ESG Information Disclosure Criteria for Listed Companies