Federal Public Prosecutor's Office (MPF) vs. Federal Government and the National Agency of Petroleum, Natural Gas and Biofuels (ANP) of Brazil for auction of blocks in fragile ecosystems

Location

PA Brazil

Status
In progress
Case file number
1027692-52.2025.4.01.3900
Start date
June, 2025
Date of judgment or latest existing decision
On October 20, 2025, the lack of procedural legitimacy to be sued of IBAMA was recognized and the preliminary objections and claims directed against the environmental agency were dismissed.
Summary

This is a Public Civil Action (PCA) with a request for urgent precautionary measures filed by the Federal Prosecutor's Office (FPO) against the Government and the National Agency of Petroleum, Natural Gas and Biofuels (ANP) in relation to the auction of the 5th Permanent Concession Offer (PCO) cycle held on June 17, 2025. It is argued that the auction should be suspended, particularly with regard to the sensitive areas comprising the 47 blocks located in the sedimentary basin of the mouth of the Amazon River.

The region is home to important mangrove ecosystems, reefs and conservation units, and is territory of diverse indigenous, quilombola and traditional peoples.

The FFP maintains that the auction cannot proceed until the pre-bidding and concession award studies are completed: a Climate Impact Study; an Environmental Assessment of Sedimentary Areas (EAAS); and studies of Indigenous, Quilombola, and traditional communities. Furthermore, the FFP argues that the free, prior, and informed consultation with these communities has been omitted, despite being required by various national and international regulations. The FFP emphasizes that this consultation must take place only after the aforementioned studies are concluded.

The Federal Prosecutor's Office highlights the obstacles to obtaining environmental licenses in the Amazon River estuary, citing previous instances of licenses being denied by IBAMA (Brazilian Institute of Environment and Renewable Natural Resources) for activities in the area due to persistent environmental technical problems for which developers have failed to provide solutions. It emphasizes that these same problems will likely arise with new license applications from the upcoming bidding cycle, threatening Brazil's commitment to preserving Amazonian socio-biodiversity.

The action highlights the rise in global temperatures and states that the main cause of the problem is the burning of fossil fuels. The argument is that Brazil's decision to expand oil exploration contradicts global decarbonization efforts and undermines the country's credibility as a key player in the international climate agenda, especially considering it will host COP 30. Furthermore, the decision contradicts the emissions reduction targets Brazil committed to in its second Nationally Determined Contribution (NDC).

In this context, considering the duty of environmental and climate transparency incumbent upon the Public Administration and the importance of considering scope 3 emissions in fossil fuel projects, a climate impact study for the Amazon River delta region is necessary; otherwise, Brazilian legislation and scientific imperatives in the face of the climate crisis would be violated.

As a provisional measure, the immediate suspension of the auction and the withdrawal of the 47 blocks located in the Amazon River Estuary Sedimentary Basin were requested until the following were completed: (i) a Climate Impact Study; (ii) an Environmental Assessment of the Sedimentary Zone (EAZ); (iii) studies of Indigenous, Quilombola, and traditional peoples and communities; and (iv) free, prior, and informed consultation with the traditional peoples and communities of the coastal region of the Amazon River Estuary, once the required studies had been carried out. As final requests, confirmation of the requests made in the context of urgent assistance was sought, as well as a declaration of nullity of the auction and concession contracts if they are formalized without the studies and consultations required in this action.

Because of the auction, the Federal Prosecutor's Office filed a motion to amend the initial complaint to include IBAMA as a defendant in the action, which was subsequently granted by the court.

The Prosecutor's Office reported that 19 exploration blocks at the mouth of the Amazon River were auctioned and requested the following provisional measures: (i) the immediate prohibition of the administrative acts of awarding and ratifying the final result of the bidding process until the requested studies and consultations are completed; (ii) the prohibition of initiating any environmental licensing process for the auctioned blocks at the mouth of the Amazon River until a final judgment is reached in the case; (iii) the prohibition of including blocks located in the sedimentary basin of the Amazon River mouth in new auctions of Operating Permits for Concessions until a final judgment is reached in the action. Regarding the merits of the case, the Prosecutor's Office requested a declaration of nullity for the auction and the concession contracts.

The Court denied the request for precautionary measures but acknowledged the Public Prosecutor's concerns regarding environmental and climate impacts. However, it maintained that a Climate Impact Assessment during the bidding phase would be premature and technically unfeasible, and that it should only be carried out during the granting of environmental licenses. It emphasized that the terms and conditions for the Fifth Permanent Concession Offer included clauses for emissions mitigation and carbon reduction, and that the Environmental Assessment of Sedimentary Areas (AAAS), while desirable, was not mandatory before the auction. A joint declaration from the Ministry of Mines and Energy (MME) and the Ministry of the Environment (MMA) was sufficient, as validated by the Federal Supreme Court (TSF) in cases ADPF 825 and 887. Regarding the prior consultation stipulated in ILO Convention 169, the Court noted that it did not perceive the presence of indigenous populations or traditional communities in the areas offered and, therefore, there was no obligation to consult them.

In its defense, IBAMA preliminarily argued that the plaintiff lacked standing and was not a legitimate defendant, contending that the agency did not participate in the bidding phase for the exploration blocks and was only involved in the environmental licensing process. It argued that it was not responsible for requiring environmental studies or prior consultations with traditional communities before the licensing process began. Regarding the merits of the case, it argued that the requests directed to IBAMA were improper and lacked legal basis. Therefore, it requested the dismissal of the case without prejudice or, alternatively, the dismissal of the claims against the agency.

The Federal Government preliminarily alleged the lack of jurisdiction of the court of the Judicial Section of Pará, arguing the existence of a connection with another public civil action and the need to include the winning companies of the auction as passive co-plaintiffs or, alternatively, their admission as auxiliaries in the proceedings. Regarding the merits, it argued the legality of the auction of the Fifth Permanent Concession Offer and the absence of irregularities with respect to the environmental studies and energy policy. It requested the acceptance of the preliminary objections or, failing that, the dismissal of the action altogether.

Climate element

In this lawsuit, the Federal Public Prosecutor's Office formulated an extensive climate argument to demonstrate, in the context of the precautionary measure, the obligation to suspend the auction of the 5th Permanent Offer Cycle or, subsidiarily, the withdrawal of the 47 blocks located in the Sedimentary Basin of the Amazon River Mouth until the following were carried out: (i) a Climate Impact Study; (ii) an Environmental Assessment of the Sedimentary Zone (EAZ); (iii) studies of the indigenous, quilombola and traditional peoples and communities; (iv) a prior, free and informed consultation, as well as the confirmation of the requests made in the context of the precautionary measure, as well as the declaration of nullity of the auction and the concession contracts if they are formalized without the studies and consultations required in the action.

Claimants
  • Federal Public Prosecutor's Office
Defendants
  • Government/Federal Union
  • National Agency of Petroleum, Natural Gas and Biofuels (ANP)
  • Brazilian Institute of Environment and Natural Resources (IBAMA)
Territorial context

The sedimentary basin at the mouth of the Amazon River is characterized as a highly dynamic and complex area, located in the far northeast of Brazil. This sedimentary basin, known geologically as the Foz do Amazonas Basin (or mouth basin), acts as the depositional terminal of the world's largest drainage basin, interacting directly with the Atlantic Ocean.

It is located in the state of Pará, Brazil, extending towards the continental shelf of the Atlantic Ocean and is closely related to the Marajó basin, forming part of a complex system of grabens (tectonic trenches) that extends towards the sea.

It is an area that receives large volumes of sediment transported from the Andes and the lowlands. It is estimated that around 75% of the sediment that passes through Óbidos reaches the Atlantic.

The river discharges between 15% and 20% of the world's liquid freshwater into the Atlantic Ocean, making the area an ecosystem of immense biodiversity, including mangrove areas and floodplain wetlands (várzea) that facilitate the discharge of freshwater and sediments. It is a region with a low population density compared to other areas, with the exception of the city of Belém. However, the area is undergoing transformations due to climate change, mining, and deforestation, which are altering local ecosystems and increasing the risk of forest fires.

Rules and principles invoked

International agreements/treaties

  • Paris Agreement (Federal Decree 9.073/2017)
  • ILO Convention 169 (Federal Decrees 5.051/2004 and 10.088/2019)
  • United Nations Framework Convention on Climate Change - UNFCCC (Federal Decree 2.652/1998)

National laws

  • Article 225 of the Constitution of the Federative Republic of Brazil of 1988 (CRFB/88)
  • Article 231 of the Constitution of the Federative Republic of Brazil of 1988 (CRFB/88)
  • National Energy Policy (Federal Law 9.478/1997)
  • National Climate Change Policy - PNMC (Federal Law 12.187/2009)

Beginning

  • Principle of environmental and climate transparency

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Instance
Judicial
Actor type
State
Topic
Acuerdo de París y compromisos climáticos
Fossil fuels
Environmental impact studies
Citizen participation
Violation of human rights
Defendant type
Board of Directors or Corporate Governance
Public company
State
Interim measures
Denied or rejected
Grounds for claim
Paris Agreement and climate commitments
Environmental or climate damage
Rights of consultation and participation
National legislation