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© 2016 Trench, Rossi e Watanabe Advogados

Environmental Trends for Agribuness in Brazil

Renata AmaralJune/2016


Environmental Liability Regime in Brazil

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• Three spheres of environmental liability: independent and may be imposed cumulatively by authorities.

Administrative

Civil Criminal


Environmental Liability Regime in Brazil

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Administrative Civil Criminal

non-compliance with laws(strict – new precedent)

strict: link of causality (broad, propter rem)

individuals and legal entities (or – new precedent)

fines: 50 to 1.5 million dollars, in practice

settlement is not always the best solution

investigation is enough for exposure

judicial challenges/statute of liminations (in fact, no due process of law)

Courts: deferential to EPA (almost never desagree)

Courts: deferential to EPA (importance of monitoring the records of the proceeding before EPA)

payment of fine & comply with tight deadlines

recovery and payment of damages (almost impossible to estimate the amount)

individuals: confinement never happens, used as a threat

© 2016 Trench, Rossi e Watanabe Advogados 4

More control of Rural Activities – licensing, contamination by waste, zoning

Major enforcement by the southern States: São Paulo, Rio Grande do Sul, Santa Catarina, Minas Gerais, and Rio de Janeiro

Increase media coverage

Compliance associated to opportunities, specially related to protection and magement of forests

Involvement of labor authorities – impacts on certification

Environmental Trends - Agribusiness Sector


Main TrendsThe Role of the DAs

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Empowered DAs:(i) Tend to demand multinationals to adopt

international best available technology even though State EPA do not request it;

(ii) Individual Accountability for Corporate Wrongdoing - public prosecutors consistently focusing on individuals

Recommendation: Avoid “double standards”, establish internal proceedings to check compliance


Main TrendsInformation Control

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Check information tools and public data basis Contaminated areas list CAR (forestry matters)

Check compliance with sustainability claims Misleading advertisement


New Forestry Code (2012)

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1. CRA (Cota de Reserva Ambiental) – pending regulation (business opportunity)

2. Opportunities to regularize damage if it took place before July 07, 2008 (Legal Reserve, Permanent Preserved Areas)

3. PRA – Environmental Regularization Program4. CAR – Environmental Rural Registry:- necessary for emission of CRA- access to governmental benefits- excemption of certain taxes- better conditions for insurances


Thank you!

Renata Campetti Amaral – Partner

[email protected]

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Government & Nonprofit

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