OSC vs. ADASA and company, for irregular granting of water rights for a thermoelectric power plant in the Federal District of Brazil

Location

DF Brasília Brazil

Status
In progress
Case file number
ACP 0712553-92
Start date
March 12, 2025
Date of judgment or latest existing decision
On June 5, 2025, the Federal District Court of Justice issued an interlocutory decision.
Summary

The Arayara International Institute filed a Public Civil Action (ACP) with a request for urgent protection against the Water, Energy and Sanitation Regulatory Agency of the Federal District (ADASA) and the company Termo Norte Energía Ltda. The main objective is to annul the water resource use permits granted by ADASA to the company for water intake and effluent discharge into the Melchior River, intended for the project to install a natural gas-fired thermoelectric power plant in Samambaia (DF). The plaintiff argues that the permits were granted with outdated data, especially based on the 2012 Integrated Water Resources Management Plan, despite the existence of more recent versions. Arayara asserts that ADASA failed to consider assessments demonstrating high water stress in the Federal District (DF), exacerbated by recent climatic events such as the record drought of 2024. According to Arayara, thermoelectric power plants consume and pollute large volumes of water, potentially jeopardizing the population's water supply and worsening the already severely degraded Melchior River, which flows into the Corumbá IV reservoir, an important alternative water source for the DF. In its initial filing, Arayara requested the immediate suspension of authorizations No. 337/2023 and No. 33/2024 to prevent the irregular progress of the environmental licensing process. On the merits, it requests their definitive annulment. In its responses, ADASA preliminarily alleged the Institute's lack of standing to sue. In essence, the company defended the legality of the administrative acts, asserting that the authorizations were merely preliminary and indicative, insufficient to permit the installation of the thermoelectric plant, and that the plaintiff had not presented robust technical evidence. Termo Norte Energía, for its part, emphasized the strategic importance of the project for diversifying the country's energy matrix and characterized natural gas as a transition fuel, also requesting its complete dismissal. The court, however, granted emergency protection, suspending the authorizations. It held that natural gas cannot be considered clean energy and that the initiative contravenes Brazil's climate commitments under the Paris Agreement, as well as the precautionary and preventative principles. It determined that, before any progress is made, the environmental and water impacts of the project must be rigorously assessed. ADASA and Termo Norte filed grievances against the decision (No. 0723611-95.2025.8.07.0000 and No. 0723663-91.2025.8.07.0000), but they were not known by the Court of Justice of the Federal District.

Although a final ruling has not yet been issued, some relevant elements regarding the current procedural situation can be noted: The preliminary decision remains in effect, as the appeals filed by the defendants—ADASA and Termo Norte Energía—were not heard by the Superior Court of Justice of the Federal District. This means that, temporarily, the authorizations are suspended, and the project cannot proceed with its environmental licensing procedures based on those authorizations.

Climate element

In its lawsuit, the Arayara Institute presented several climate-related arguments to challenge the legality of the permits granted to the planned natural gas-fired power plant in Samambaia (Mexico City). The central argument was the project's incompatibility with the water stress exacerbated by climate change in Mexico City. The organization pointed out that ADASA used outdated data—especially the 2012 Integrated Water Resources Management Plan (PGIRH)—which does not reflect the current scenario of reduced rainfall, decreased water availability, and the record drought of 2024, phenomena associated with global warming. It argued that, in a context of increasing climate variability, authorizing the extraction of millions of liters of water daily for a power plant represents a structural risk to Mexico City's water security.

The lawsuit emphasized that thermoelectric power generation is highly water-intensive and produces cumulative impacts that are exacerbated under extreme weather conditions, potentially deepening conflicts over water use. Furthermore, it warned that the additional discharge of effluent into the Melchior River, a waterway already in critical condition, further compromises the region's climate resilience and its capacity to adapt to extreme events.

Another key argument was the need to apply the precautionary and preventative principles in the face of scientific uncertainty and the irreversible risks stemming from climate change—principles enshrined in environmental legislation and recognized in the jurisprudence of the Supreme Federal Court (STF). According to Arayara, in the context of a climate emergency, the State must prioritize decarbonization solutions and protect water resources as strategic assets for climate adaptation.

In its ruling, the court also developed relevant climate-related arguments. It noted that natural gas cannot be considered a clean energy source, as its emissions contribute significantly to greenhouse gases (GHG). It emphasized that the construction of a thermoelectric power plant runs counter to Brazil's commitments under the Paris Agreement, which calls for the progressive reduction of emissions and the transition to renewable energy.

The court stated that the case must be analyzed in light of the National Climate Change Policy (PNMC) and that, given the project's potential climate and energy impact, a rigorous assessment of its effects is required. It concluded that, given the uncertainty and the climate relevance of the matter, suspending the permits is necessary to protect the climate and environmental balance of Mexico City.

Claimants
  • Arayara International Institute of Education and Culture
Defendants
  • Water, Energy and Sanitation Regulatory Agency of the Federal District (ADASA)
  • Termo Norte Energia Ltda.
Supporting organizations
Public Prosecutor's Office of the Federal District and Territories
Territorial context

The area involved in this action corresponds to the Samambaia region in the Federal District, an area designated for the construction of a thermoelectric power plant that would require water intake and the discharge of effluent into the Melchior River. This river flows through densely urbanized areas of the Federal District, including Samambaia, Ceilândia, and parts of Taguatinga, and empties into the Corumbá IV reservoir, considered one of the main alternatives for the future water supply of the Federal District. It is, therefore, a strategic territory for both environmental quality and regional water security.

The affected communities include residents of Samambaia and Ceilândia, two of the most populated administrative regions in the Federal District, characterized by high population density, rapid urban growth, and socioeconomic inequalities. These communities depend directly on the availability of water for human consumption, domestic activities, and essential urban services. They also suffer particularly intensely from the effects of environmental pollution and urban heat islands, phenomena exacerbated by climate change.

The Melchior River, already classified as one of the most polluted in Mexico City, performs essential ecological functions and flows through areas used by the population for recreation, transportation, and services. Its degradation affects both the local quality of life and the water balance of the metropolitan area. Therefore, this action seeks to protect not only a critical ecosystem but also the safe access to water for hundreds of thousands of residents who depend on these sources for their well-being and survival.

Rules and principles invoked

International agreements/treaties

  • Paris Agreement
  • Rio Declaration on Environment and Development

National laws

  • Federal Constitution
  • Law 6.938/1981
  • Law 12.187/2009
  • Law 9.433/1997
  • Law 7.347/1985

 

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Instance
Judicial
Actor type
Civil society organization
Topic
Water
Environmental protection
Unjust transition
Defendant type
Private enterprise
State
Interim measures
Granted
Grounds for claim
Local legislation
National legislation