President Lula has until August 8 to sanction or veto, in full or in part, the bill that establishes a new General Environmental Licensing Law (PL 2159/21), which was approved by the Chamber of Deputies ten days ago. If he opts for partial vetoes, the federal government is expected to issue a provisional presidential decree to amend the bill. Civil society groups, including environmental, Indigenous, and Afro-Brazilian quilombola organizations, are calling for a full veto.

The Climate Observatory, a network representing more than 130 Brazilian civil society organizations, published a legal analysis stating that at least 42 of the bill’s 66 articles represent serious setbacks. The 95-page technical note identifies multiple articles as unconstitutional or against the public interest—highlighting weakened rules on direct and indirect environmental impacts and restrictions on consulting communities affected by development projects. Delivered to the Presidency and 16 ministries last week, the document argues that the bill is so harmful it would result in “regulatory chaos.”

One article, the report warns, poses a risk to the financial sector. “Today, financial institutions are bound by a range of environmental obligations under Central Bank rules and international agreements,” said Suely Araújo, public policy coordinator at the Climate Observatory. “Article 58 of the bill reduces banks’ responsibility to merely requesting an environmental license, which, under the new rules, could be granted through self-licensing.”

The bill includes the creation of a “License by Adhesion and Commitment” (LAC), originally intended for low-risk, small-scale projects. But under the current version, this mechanism would be expanded to allow most licenses in the country to be issued automatically, based solely on self-declarations from project developers. “A bank could say, ‘I did my part, I requested the license,’ even if it’s just a document printed by the project owner themselves,” Ms. Araújo noted. “It’s a major setback for the accountability of financial institutions.”

The civil society response has escalated. A full-page ad published in Sunday’s (27) Folha de S.Paulo newspaper featured the slogan “Veta, Lula” [urging Mr. Lula to veto the bill] below the iconic image of the president climbing the Planalto Palace ramp on Inauguration Day flanked by figures including Indigenous leader Raoni Metuktire, recycling worker Aline Sousa, and metalworker Weslley Rodrigues Rocha. The image, which symbolized the passing of the presidential sash “by the people,” contrasted Mr. Lula with former president Jair Bolsonaro, who skipped the transition and left for the United States.

The ad is signed by 25 groups, including the Climate Observatory, the Landless Workers’ Movement (MST), major Indigenous organizations such as APIB and the Raoni Institute, and the national quilombola association CONAQ. “Whoever climbs the ramp with the people must defend the people’s interests,” reads the message.

“We need a clear law, a national licensing framework with clear rules, not one riddled with unconstitutionalities and ambiguities,” said Malu Ribeiro, public policy director at SOS Mata Atlântica NGO. “Brazil is on the verge of signing the EU-Mercosur agreement, and this bill sends the wrong message, as it runs counter to the global commitments we’re presenting at COP30. You can’t send two conflicting signals: one saying Brazil wants to lead by example and another by approving a bill like this. It’s unacceptable.”

Ms. Ribeiro emphasized that strong environmental impact assessments benefit the entire society, while projects pushed through under political pressure without proper safeguards have led to serious contamination and loss of life. “Loosening requirements is a self-defeating move,” she warned.