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© 2016 Trench, Rossi e Watanabe Advogados
Environmental Trends for Agribuness in Brazil
June/2016
© 2016 Trench, Rossi e Watanabe Advogados
Environmental Liability Regime in Brazil
2
• Three spheres of environmental liability: independent and may be
imposed cumulatively by authorities.
Administrative
Civil Criminal
© 2016 Trench, Rossi e Watanabe Advogados
Environmental Liability Regime in Brazil
3
Administrative Civil Criminal
non-compliance with laws
(strict – new precedent)
strict: link of causality (broad,
propter rem)
individuals and legal entities
(or – new precedent)
fines: 50 to 1.5 million dollars, in
practice
settlement is not always the best
solution
investigation is enough for
exposure
judicial challenges/statute of
liminations (in fact, no due
process of law)
Courts: deferential to EPA
(almost never desagree)
Courts: deferential to EPA
(importance of monitoring
the records of the
proceeding before EPA)
payment of fine & comply with
tight deadlines
recovery and payment of
damages (almost impossible to
estimate the amount)
individuals: confinement never
happens, used as a threat
© 2016 Trench, Rossi e Watanabe Advogados 4
 More control of Rural Activities – licensing, contamination
by waste, zoning
 Major enforcement by the southern States: São Paulo,
Rio Grande do Sul, Santa Catarina, Minas Gerais, and Rio de
Janeiro
 Increase media coverage
 Compliance associated to opportunities, specially related
to protection and magement of forests
 Involvement of labor authorities – impacts on certification
Environmental Trends - Agribusiness Sector
© 2016 Trench, Rossi e Watanabe Advogados
Main Trends
The Role of the DAs
5
Empowered DAs:
(i) Tend to demand multinationals to adopt
international best available technology
even though State EPA do not request it;
(ii) Individual Accountability for Corporate
Wrongdoing - public prosecutors
consistently focusing on individuals
Recommendation: Avoid “double standards”, establish
internal proceedings to check compliance
© 2016 Trench, Rossi e Watanabe Advogados
Main Trends
Information Control
6
 Check information tools and
public data basis
 Contaminated areas list
 CAR (forestry matters)
 Check compliance with
sustainability claims
 Misleading advertisement
© 2016 Trench, Rossi e Watanabe Advogados
New Forestry Code (2012)
7
1. CRA (Cota de Reserva Ambiental) – pending
regulation (business opportunity)
2. Opportunities to regularize damage if it took place
before July 07, 2008 (Legal Reserve, Permanent
Preserved Areas)
3. PRA – Environmental Regularization Program
4. CAR – Environmental Rural Registry:
- necessary for emission of CRA
- access to governmental benefits
- excemption of certain taxes
- better conditions for insurances
© 2016 Trench, Rossi e Watanabe Advogados
Thank you!
Renata Campetti Amaral – Partner
renata.amaral@trenchrossi.com
8

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Webinar UKTI- Environmental

  • 1. © 2016 Trench, Rossi e Watanabe Advogados Environmental Trends for Agribuness in Brazil June/2016
  • 2. © 2016 Trench, Rossi e Watanabe Advogados Environmental Liability Regime in Brazil 2 • Three spheres of environmental liability: independent and may be imposed cumulatively by authorities. Administrative Civil Criminal
  • 3. © 2016 Trench, Rossi e Watanabe Advogados Environmental Liability Regime in Brazil 3 Administrative Civil Criminal non-compliance with laws (strict – new precedent) strict: link of causality (broad, propter rem) individuals and legal entities (or – new precedent) fines: 50 to 1.5 million dollars, in practice settlement is not always the best solution investigation is enough for exposure judicial challenges/statute of liminations (in fact, no due process of law) Courts: deferential to EPA (almost never desagree) Courts: deferential to EPA (importance of monitoring the records of the proceeding before EPA) payment of fine & comply with tight deadlines recovery and payment of damages (almost impossible to estimate the amount) individuals: confinement never happens, used as a threat
  • 4. © 2016 Trench, Rossi e Watanabe Advogados 4  More control of Rural Activities – licensing, contamination by waste, zoning  Major enforcement by the southern States: São Paulo, Rio Grande do Sul, Santa Catarina, Minas Gerais, and Rio de Janeiro  Increase media coverage  Compliance associated to opportunities, specially related to protection and magement of forests  Involvement of labor authorities – impacts on certification Environmental Trends - Agribusiness Sector
  • 5. © 2016 Trench, Rossi e Watanabe Advogados Main Trends The Role of the DAs 5 Empowered DAs: (i) Tend to demand multinationals to adopt international best available technology even though State EPA do not request it; (ii) Individual Accountability for Corporate Wrongdoing - public prosecutors consistently focusing on individuals Recommendation: Avoid “double standards”, establish internal proceedings to check compliance
  • 6. © 2016 Trench, Rossi e Watanabe Advogados Main Trends Information Control 6  Check information tools and public data basis  Contaminated areas list  CAR (forestry matters)  Check compliance with sustainability claims  Misleading advertisement
  • 7. © 2016 Trench, Rossi e Watanabe Advogados New Forestry Code (2012) 7 1. CRA (Cota de Reserva Ambiental) – pending regulation (business opportunity) 2. Opportunities to regularize damage if it took place before July 07, 2008 (Legal Reserve, Permanent Preserved Areas) 3. PRA – Environmental Regularization Program 4. CAR – Environmental Rural Registry: - necessary for emission of CRA - access to governmental benefits - excemption of certain taxes - better conditions for insurances
  • 8. © 2016 Trench, Rossi e Watanabe Advogados Thank you! Renata Campetti Amaral – Partner renata.amaral@trenchrossi.com 8