Brazil's Congress has approved a highly controversial bill that relaxes environmental licensing requirements, marking the most significant rollback in the country's environmental legislation in four decades.

The legislation, often called the 'law of devastation,' was approved on July 17, 2025, shortly before the COP30 climate summit scheduled for November in Belém, Brazil.

This law reduces the role of agencies protecting Indigenous and quilombola communities, limiting their input to projects on officially recognized territories and excluding large areas awaiting titling.

Key aspects include the creation of a Special Environmental License that allows skipping certain steps and a self-declaration-based license, which could expedite projects with medium pollution potential.

The bill has faced fierce opposition from environmental groups, Indigenous leaders, and critics who warn it will lead to increased deforestation, climate risks, and threaten Brazil's international environmental commitments.

Senate leader Davi Alcolumbre played a pivotal role in advancing the legislation, emphasizing local economic development and potentially expediting government-approved projects.

Some members of President Lula's cabinet initially supported the bill, but there is internal division, with critics arguing the administration did not oppose it strongly enough.

President Lula now has 15 working days to veto the bill; however, Congress could override the veto with sufficient support from deputies and senators, raising concerns about a legal showdown.

The legislation, already approved by the Senate, awaits Lula's decision, which could significantly impact Brazil's environmental policies and international reputation.

Environmental advocates, including Indigenous groups, have condemned the law, with some warning it could facilitate the 'extermination of Indigenous peoples' and calling for civil society to oppose a veto override.

Despite strong backing from the agricultural sector and some in Congress, critics argue the law will undermine environmental standards and increase the risk of climate-related disasters.

Controversial provisions include the ability for projects to bypass impact studies and regulatory reviews, affecting about 90% of licensing processes, which critics say could lead Brazil away from international environmental standards.

This legislative move poses a serious challenge to Brazil's international image as it prepares to host the COP30 conference in the Amazon, highlighting the global implications of the law.