Instituto Arayara vs Estado do Rio Grande do Sul e União Federal (Just Energy Transition on Rio Grande do Sul State)

On July 19, 2024, the Instituto Internacional Arayara de Educação e Cultura - Instituto Arayara de Educação para a Sustentabilidade filed a Public Civil Action (CPA), with a request for an injunction, against the State of Rio Grande do Sul, seeking the implementation of a just energy transition process within the state. This includes a structured plan to ensure the decommissioning of the fossil fuel-powered thermoelectric sector and adopting a process to rebuild state infrastructure. The causes of action include the catastrophic consequences of the climate crisis experienced by the state; the fact that its fossil fuel-powered thermoelectric sector is one of the least efficient in Brazil, responsible for significant environmental liabilities and a large stock of emissions; and the state’s commitment under the Proclima 2050 program, which falls short of the state's needs in terms of energy transition. It is argued that the thermoelectric sector structure in Rio Grande do Sul contributes to climate change, and the Proclima 2050 program fails to provide truly effective guidelines for a just energy transition, which is critical given the increasingly frequent extreme weather events in the region. In the injunction, it is requested that: (i) The State of Rio Grande do Sul be ordered to establish a participatory committee to develop a just energy transition plan, with diverse representation; (ii) The committee operates based on scientific data, hiring specialized consultancy to assist in its functioning; (iii) The plan formulated by the committee be presented within 180 days; and (iv) The State of Rio Grande do Sul be prohibited from granting tax exemptions, incentives, new licenses, or even carrying out reconstruction works for the fossil fuel-powered thermoelectric sector. On the merits, it is requested that the action be granted, with confirmation of the urgent injunction. An injunction was granted ordering the suspension of the contract signed by the state of Rio Grande do Sul for the preparation of the Just Energy Transition Plan, until the technical committee that has been negotiated between the parties is effectively established or until some other measure is consensually adopted. Furthermore, the Union of Workers in the Mineral Extraction and Processing Industry of Candiota – the Candiota Miners' Union – was granted permission to participate as amicus curiae. A decision was issued in the context of Appeal No. 5002577-79.2025.8.21.7000 (State of Rio Grande do Sul - TJRS) granting the request for preliminary injunction sought by the State of Rio Grande do Sul to overturn the decision that granted the provisional injunction. In this decision, the court ordered the inclusion of the Federal Government as a defendant in the lawsuit, with the case being sent to the Federal Court, based on the following grounds: i) the initial claim is based on an international law treaty and has as its cause of action the Paris Agreement, therefore, it is the function of the Federal Government to represent the country in its international relations; ii) the exceptional nature of judicial control over public management activity, requiring the observance of the separation of powers; iii) the lack of sufficient basis to determine the suspension of an administrative contract, especially since the result of this contract is a study whose outcome will benefit environmental policies and foresees eventual revision. The decision was the subject of an internal appeal and a special appeal filed by the Arayara Institute. In view of the content of the aforementioned decision, an order/decision was issued determining the registration of the Union as the defendant in the lawsuit, as well as the referral of the case file to the Federal Court. Jurisdiction having been declined, the case was definitively closed and distributed to the Federal Court of the 9th Federal District of Porto Alegre, under number 5054037-06.2025.4.04.7100. A judgment was rendered dismissing the case without prejudice. The court recognized the connection (identity of parties and claims) between this action, understood as a contained action, and the Public Civil Action No. 5050920-75.2023.4.04.7100 - Instituto Preservar, AGAPAN and Núcleo Amigos da Terra vs. União Federal and others (Climate emergency in the state of Rio Grande do Sul), understood as a containing action, which discusses the just energy transition regarding the coal mining sector within the State of Rio Grande do Sul. Since the containing action, whose object would be more comprehensive, has already been decided, the case was dismissed in order to avoid conflicting judgments. The plaintiff filed an appeal, arguing a profound difference in content, scope, and purpose between the claims of both actions, thus making the application of the principle of joinder of actions inadmissible. The plaintiff requests the reversal of the appealed judgment, recognizing the absence of joinder of actions between the present class action and class action no. 5050920-75.2023.4.04.7100, and ordering the regular continuation of the proceedings.