MPSP vs. Usina Mandu S.A. (Burning of sugarcane straw)

In September 2009, the São Paulo State Prosecutor’s Office (MPSP) filed a Public Civil Action (CPA) against Usina Mandu S.A. due to the burning of sugarcane straw during a restricted period. The first instance decision ordered the defendant to compensate for the environmental damage caused by the illegal burning in the amount of R$400,000.00. Both the plaintiff and the defendant appealed the decision. The MPSP sought an increase in the compensation amount, arguing that the burning had degraded air quality, with negative effects on public health and the environment. In February 2014, after the MPSP filed a motion for the review of the second instance ruling, the dissenting vote in the appellate judgment prevailed. This dissenting vote held that the polluting company should receive an administrative fine and compensate for the damage caused by the illicit burning. In assessing civil liability, it considered the volume of gases released into the atmosphere, determining this by multiplying the area by the duration of the burn. It estimated emissions of 15 tons of CO₂ per hectare over 30 to 60 minutes, which it regarded as the average burn duration. It ruled that the carbon price should be assessed on the carbon market, as provided on São Paulo’s BM&F BOVESPA. The amount was to be determined in an assessment during the liquidation phase. In the liquidation phase, the calculated amount was approved, resulting in a final award of compensation of R$215,655.50.