AM Brazil
This is a Public Civil Action (PCA) with a request for urgent precautionary measures filed by the Arayara International Institute of Education and Culture against the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA), and the Federal Government. This action is part of a set of six PCAs filed against the 4th Permanent Bidding Cycle for oil exploration blocks.
The objective of the action seeks to challenge the auction of oil exploration blocks carried out through the 4th Permanent Offering Cycle and points out that the inclusion of blocks AM-T-82, AM-T-64, AM-T-107, AM-T-132, AM-T-133, AM-T-146, AM-T-153, AM-T-169, AM-T-114 and AM-T-38, located in the Amazon Basin, is illegal because they overlap with Conservation Units, buffer zones, environmental protection areas and areas where endangered species are found.
The plaintiffs argued that the climate crisis necessitated an energy transition toward clean energy and a reduction in carbon dioxide emissions, which was incompatible with expanding oil exploration into protected areas. They also challenged the administrative act issued jointly by the Ministry of Mines and Energy and the Ministry of Environment and Climate Change that authorized the bidding for these blocks.
In the preliminary proceedings, the following was requested: (i) an order compelling the defendants to publish online the existence of the legal proceedings; (ii) the suspension of the bid for Block AM-T-82; (iii) the suspension of the Joint Declarations of December 31, 2018, and August 2020 with respect to the other disputed exploration blocks and the suspension of their bids in the 4th Permanent Cycle until new Joint Declarations are issued that comply with the necessary legislation. In the final proceedings, the following was requested: (i) recognition of the invalidity of the Joint Declarations with respect to the exploration blocks; (ii) the exclusion of the bid for Block AM-T-82; (iii) an order to exclude the other disputed blocks from the Bidding Cycle until a new Joint Declaration is issued that observes the protection of environmentally protected areas.
The court partially granted the request for an injunction, ordering the defendants to publish online the existence of the lawsuit and that blocks AM-T-64, AM-T-107, and AM-T-133 were partially located within protected areas. It was argued that publishing this environmental information was mandated by Brazilian law, the Rio Declaration of 1992, and the Escazú Agreement. The court dismissed the case without prejudice to the requests related to the other blocks, which were not auctioned. It ordered the inclusion of Atem Participações S/A as a defendant, since it was the winning bidder for the areas.
The ANP (National Agency of Petroleum, Natural Gas and Biofuels) promoted an interlocutory appeal (AI 1000012-89.2024.4.01.0000 - TRF1), requesting the revocation of the decision to deny the request for precautionary measure, which was granted to suspend the requirement to publish information on blocks online.
IBAMA and ANP objected, arguing that the alleged overlap of an exploration block with a conservation unit did not imply its exclusion from the bidding phase, according to current regulations, but that sensitive areas were identified in the procedure. They emphasized the economic benefits of oil exploration for Brazilian society and argued that the action was based on an abusive application of the precautionary principle, since the risks of the activity would be analyzed in the environmental licensing phase, which was not possible in a judicial process. ANP clarified that it promoted public participation before conducting bidding processes to grant oil and natural gas exploration rights. They highlighted that in the International Energy Agency's NetZero 2050 scenario, the energy mix still included oil and natural gas as primary energy sources and that the greenhouse gas emission impacts of projects could be assessed in the environmental licensing phase at the expense of the developer, and therefore, that simply holding a bidding process did not pose a risk to the environment. They requested recognition of the plaintiff's lack of standing; the consolidation of the proceedings with the action already pending in the 4th Federal Civil Court of the Judicial Section of the State of Rio Grande do Norte; recognition of the plaintiff's lack of procedural standing; and that the lawsuits be dismissed.
In its defense, the Union, in addition to addressing licensing issues already covered by other federal agencies, argued that the offer for the disputed blocks was technically supported by regulations issued by the relevant bodies and that the Federal Court of Accounts approved the ANP's Permanent Offer. It requested recognition of the plaintiff's lack of standing and the connection of the proceedings to the 4th Federal Civil Court of the Judicial Section of the State of Rio Grande do Norte.
Atem Participações SA filed a counterclaim arguing that, during the concession phase of the areas by the ANP (National Agency of Petroleum, Natural Gas and Biofuels), the alleged overlap of block AM-T-82 with a conservation unit did not imply actual or potential environmental damage, which should be assessed during the environmental licensing phase. It requested that jurisdiction be transferred to the Fourth Federal Civil Court of the SJRN (Federal Court of Rio Grande do Norte) and that the claims be dismissed.
In their public civil action, the organizations explicitly incorporated the context of the global climate crisis as a central argument to challenge the legality and legitimacy of including the exploration blocks in the 4th Permanent Offer Cycle. They argued that expanding the oil frontier in the Amazon and Paraná Basins was incompatible with Brazil's climate commitments and with the widely recognized scientific need to rapidly reduce greenhouse gas emissions.
The lawsuit argues that, in a climate emergency, public policies should be geared toward a just energy transition, prioritizing clean energy sources and moving away from fossil fuels. They assert that the government's promotion of new oil exploration areas contravenes the goals of the Paris Agreement and intensifies climate risks that already disproportionately affect Indigenous peoples, who are particularly vulnerable to climate change and play a vital role in protecting forests that act as carbon sinks.
They also pointed out that opening new mining areas in ecologically sensitive regions increased deforestation, environmental degradation, and pressure on critical Amazonian ecosystems, as well as biodiversity loss, thereby contributing to dangerous climate issues. This argument connects to the notion of “environmental racism,” alleging that state decisions that exacerbate the climate crisis disproportionately affect Indigenous and traditional communities.
Regarding the court's decision, although the judge acknowledged the general relevance of the environmental and Indigenous debate, he did not thoroughly examine the climate-related arguments in the preliminary phase. He considered that the main issue at that time was to verify whether there was a direct overlap with Indigenous lands that would justify the immediate suspension of the proceedings, and concluded that—in a preliminary analysis—the alleged environmental and climate impacts should be evaluated later, during the environmental licensing stage, when specific studies would be conducted. Thus, the Court did not dismiss the relevance of the climate-related arguments, but understood that they did not constitute sufficient grounds for an urgent measure in the initial phase of the bidding process.
- Arayara International Institute of Education and Culture
- National Agency of Petroleum, Natural Gas and Biofuels - ANP
- Brazilian Institute of Environment and Renewable Natural Resources - IBAMA
- Federal Union
- Atem Group SA
The fourth cycle of permanent offering of oil concessions and protected areas in the Amazon basin, particularly focused on Brazil, marks a significant expansion of the hydrocarbon frontier, with an intensive focus on the Amazon region and its surrounding areas.
This process unfolds within a complex territorial context, where the interests of energy exploitation, environmental conservation, and the rights of indigenous peoples overlap, attracting multiple national and international companies.
At the end of 2023, the 4th Permanent Concession Offer Cycle of the National Petroleum Agency (ANP) began, with the objective of auctioning rights over oil and gas blocks, many of them in the Amazon region.
The region is located on the Equatorial Margin (northern region of Brazil), near the mouth of the Amazon River, where pressure from fossil fuel extraction has increased despite sustainability commitments. The auctioned oil blocks are situated on Indigenous lands, territorial reserves, and conservation areas, posing serious risks of oil spills, underwater noise, and maritime traffic, all of which negatively impact biodiversity.
Indigenous and environmental organizations, such as the Climate Observatory and Greenpeace, have denounced that these activities damage critical ecosystems and disturb ancestral territories, attempting to suspend drilling and auctions due to environmental risks and lack of consultation with traditional communities.
There are actions underway to have the government propose declaring the Amazon Biome a natural reserve and prohibiting new fracking contracts, seeking to protect more than 483,000 km². However, tensions remain over existing blocks and the need for prior consultation with communities.
International agreements/treaties
- Paris Agreement
- Rio-92 Declaration
- Escazú Agreement
National laws
- Article 170 of the Federal Constitution (CRFB/88)
- Article 225 of the Federal Constitution (CRFB/88)
- National Environmental Policy Law - PNMA (Federal Law 6.938/1981)
Beginning
- Principle of prevention
- Precautionary principle
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