ESG Post

Regulators

Brazil’s largest climate lawsuit, BRL 635M sought for Amazon deforestation

Brazil’s Attorney-General’s Office (AGU), on behalf of the Chico Mendes Institute for Biodiversity Conservation (ICMBio), has filed a lawsuit demanding BRL 635 million (USD 115 million) in damages for climate harm caused by illegal cattle ranching in the Jamanxim National Forest, a protected part of the Amazon rainforest.

Filed in the Federal Court of Pará, this is the largest climate-related lawsuit in Brazil’s history targeting environmental violations in conservation areas. The suit claims that 7,075 hectares of forest were destroyed due to illegal activities, including large-scale deforestation, illegal burning, herbicide use, and the destruction of permanent preservation zones.

Attorney-General Jorge Messias said, “The federal government will have zero tolerance for environmental offenders […] We will not tolerate, under any circumstances, any type of environmental violation, especially in conservation and preservation areas, such as our national parks.”

The lawsuit follows inspections by environmental agencies, including ICMBio and the National Institute of the Environment and Renewable Natural Resources (IBAMA). Inspectors found over 3,000 unregistered cattle grazing in the deforested area.

The compensation is based on the social cost of the greenhouse gas emissions caused by the forest’s destruction, estimated at 1,139,075 tons of carbon released into the atmosphere. The social cost was calculated using the OECD’s Social Cost of Carbon mechanism. ICMBio President Mauro Pires highlighted the significance of the case and said, “This type of lawsuit is paving the way for us to follow”.

The lawsuit also seeks a court order for the ranchers to vacate the area within 30 days and calls for measures to prevent further exploitation, including the demolition of structures in the national forest.

The case is expected to set a precedent for future climate lawsuits in Brazil and strengthen the country’s zero-tolerance policy toward environmental crimes, particularly in the Amazon, where illegal cattle ranching is a major driver of deforestation.