Brazil’s senate has passed an environmental licensing bill, potentially expediting oil exploration projects by standardising procedures and introducing a simplified process for certain government-prioritised projects.

The bill approved with a 54-13 vote, sets out to establish national standards for environmental licensing, aiming to streamline the process for projects with minimal environmental impact.

This move could notably affect oil exploration activities, particularly in the Amazon region.

The legislation introduces a new category of environmental licence for projects deemed as government priorities, which would undergo a simplified licensing process capped at one year.

This development is critical as Petrobras, the state-controlled oil giant, is gearing up to commence offshore drilling in the ecologically delicate Foz do Amazonas offshore basin.

Additionally, the bill proposes that agricultural projects be exempt from environmental licensing, although they would still require authorisation to clear native vegetation.

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It also permits small and medium-sized projects to self-declare their environmental commitments without obtaining a formal licence.

Senator Eliziane Gama expressed concern over this aspect, referencing the Brumadinho dam disaster of 2019 as a cautionary example.

Instituto Acende, a Brazilian energy think tank, lauded the bill as a key step for Brazil, suggesting it would “reduce legal uncertainty, administrative inefficiencies, and obstacles to sustainable development,” reported Argus Media.

Conversely, environmentalists have strongly opposed the bill.

Observatorio do Clima condemned it as the “greatest attack on environmental legislation in four decades”, arguing that it would permit the approval of nearly all new projects without comprehensive environmental impact studies.

The bill is now set to return to the lower house for further consideration following the senate’s amendments to the original text.