Instituto Arayara, APIB and Rio dos Pardos Indigenous Land Kupli Village vs. ANP, IBAMA, Federal Government and others

On December 12, 2023, the NGO Instituto Arayara de Educação e Cultura para a Sustentabilidade, the Articulation of Indigenous Peoples of Brazil (APIB) and the Rio dos Pardos Indigenous Land Kupli Village filed a public civil action (environmental class-action) against the National Agency for Petroleum, Natural Gas and Biofuels (ANP), Brazil’s Federal Environment Agency (IBAMA), and the Federal Government. This lawsuit is part of a set of 6 environmental class-action filed against the 4th Bid Cycle for oil exploration blocks. The aim is to challenge the auction of oil exploration blocks held through the 4th Cycle. The plaintiffs argue that the inclusion of a set of blocks located in the Paraná and Amazonas Basins is illegal, as they overlap with areas of influence or restriction of 23 indigenous lands, and there was no prior, free and informed consultation process. They claim this is a case of environmental racism, since the proximity of the exploration blocks to indigenous lands poses risks to health, the environment and the use of the territory by the peoples who live there. They state that the climate crisis scenario requires an energy transition towards clean energies and a reduction in GHG emissions, which is incompatible with the expansion of oil exploration. Furthermore, they affirm that indigenous lands are essential for combating this crisis, as they are barriers against deforestation and forest degradation and their inhabitants are the main guardians of the environment. As a preliminary injunction the plaintiffs request the suspension of the offer of the contested exploration blocks in the 4th Bid Cycle, until the protection of indigenous rights is observed. On a definitive basis, they request that the contested blocks be excluded from the Bid Cycle until the affected indigenous rights are consulted. On December 19, 2023, the court rejected the request for an injunction and partially rejected the initial petition regarding the blocks located in the Paraná Basin, as it considered that they did not fall within its jurisdiction. The court ruled that there was no longer any procedural interest in challenging some of the exploration blocks since, when the auction took place, only two blocks (AM-T-107 and AM-T-133) were auctioned off, and the proceedings should continue only in relation to them. Also, Atem Participações S.A. was included as a necessary co-litigant, as it was the bidder for the exploration blocks. This preliminary injunction does not mention climate change. In March 2024, IBAMA and ANP presented their defenses, stating that there is no overlap between the blocks on offer and indigenous lands. They emphasized the economic benefits of oil exploration for Brazilian society and that in the International Energy Agency's NetZero 2050 scenario, the energy matrix will still rely on oil and natural gas as primary energy and that the impacts of greenhouse gas emissions from the projects can be assessed in the environmental licensing phase under the financial burden of the entrepreneur. The ANP clarified that it promotes social participation before bidding for oil and natural gas exploration rights. They emphasized that simply holding an auction process does not impose a risk on the environment. On March 4, 2024, the Federal Government filed its defense. In addition to addressing the licensing issues already dealt with by other federal bodies, claimed that the offer of the contested blocks is technically supported by the rules issued by the competent bodies. In March 2024, Atem Participações S.A. filed a defense in which it stressed that the bidding process does not pose a risk to the environment and that all the impacts of the projects to be explored will be assessed during the environmental licensing phase.