Brazil's Petrobras has received approval to begin a five-month offshore oil exploration in the Foz de Amazonas region near the Amazon River, despite ongoing environmental concerns.

The approval allows Petrobras to drill immediately, with the company asserting it has strong environmental protections in place and that the project is solely for assessment, not commercial production.

The approval process faced opposition from environmentalists and civil society, citing risks to marine biodiversity and ecological stability.

Critics argue that the decision undermines Brazil's climate leadership, especially ahead of the upcoming COP30 climate talks scheduled in Belém next month.

President Lula supports the project, claiming that oil revenues will help fund Brazil's climate transition, even as environmental groups criticize the move.

Lula's backing reflects a balancing act between economic interests and environmental concerns, with the project aligned with Brazil's broader energy and climate strategies.

The environmental approval was granted after initial rejection by Ibama in 2023 due to inadequate wildlife safeguards, but Lula's influence led to a reversal of the decision.

Environmental authorities, including Ibama, initially denied the license citing ecological risks, but later approved it after Petrobras appealed and Lula pressured the agency.

Concerns remain about the ecological risks, including potential biodiversity loss amid challenging environmental conditions like storms and strong currents.

Environmental groups, including Greenpeace, fear that oil spills could significantly harm the Amazon's biodiversity and undermine Brazil's climate commitments before COP30.

Legal challenges are expected, with groups like Brazil's Climate Observatory planning to contest the license in court over legal and ecological issues.

Brazil ranks eighth globally in oil production, with about half of its energy coming from renewables, but critics worry that this project contradicts climate goals.

Brazilian Environment Minister Marina Silva opposes offshore oil exploration in the Amazon, contrasting with Lula's support driven by economic and energy needs.