Federal Public Prosecutor’s Office v. State of Amazonas and FUNAI (Carbon Credits and Violation of Prior Consultation)

On November 19th 2024, the Federal Public Prosecutor's Office (MPF) filed a Public Civil Action (ACP) against the state of Amazonas and the National Foundation for Indigenous Peoples (FUNAI), seeking the suspension of the carbon credits/REDD+ project implemented by the Amazonas Environment Secretariat (SEMA/AM). The plaintiff alleges that the project was implemented without prior, free and informed consultation with indigenous and traditional communities, in violation of ILO Convention 169. Also, carbon credit projects, especially in the REDD+ modality, have structural flaws that compromise their effectiveness in reducing greenhouse gas (GHG) emissions, serving more as an instrument for the commodification of traditionally occupied territories than as a real climate mitigation mechanism. As a preliminary injunction, it is requested that urgent relief be granted for the immediate suspension of SEMA/AM's administrative acts. On the merits, it calls for the project to be declared null and void and for the state of Amazonas to be ordered to compensate the affected communities for material and moral damage.

In February 2025, the state of Amazonas filed a defence, in which it argued that its REDD+ program was legal, effective and essential as a fundamental instrument for tackling the climate crisis and promoting forest conservation, in full compliance with current national and international legislation, respecting the rights of indigenous peoples and traditional communities through the provision for prior, free and informed consultation. It therefore requested that the action be dismissed in its entirety.

FUNAI filed a petition requesting its inclusion as a plaintiff in the lawsuit, arguing that the rights of the indigenous peoples it represents were directly affected by the state initiative, a request granted by the court. The court also granted the request for urgent relief to, among other measures, suspend the challenged administrative acts of SEMA/AM; prohibit the entry of companies or public agents linked to the aforementioned public notice into areas occupied or used by traditional communities and indigenous peoples; and ensure that the state of Amazonas proceeds with the development of projects with prior, free and informed consultation of the traditional communities and indigenous peoples who may occupy the areas, in accordance with ILO Convention 169.