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IBAMA v. Dirceu Kruger (Illegal deforestation in the Amazon and climate damage) - decision

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IBAMA v. Dirceu Kruger (Illegal deforestation in the Amazon and climate damage) - petition

Filing Year For Action

On September 12, 2023, the Federal Environment Agency - IBAMA filed a Public Civil Action (ACP) against Dirceu Kruger for climate damage. The defendant is a cattle raiser and has been fined several times by the environmental agency for illegal deforestation of a total of 5,600 hectares in the state of Amazonas, using fire. It is argued that his illegal activities have an impact on the biomass of the Amazon, illegally interfering with the forest's carbon stock and emitting greenhouse gases (GHG), intensifying the climate crisis. It is argued that climate damage is projected continuously and addresses residual environmental damage in climate matters, which corresponds to the set of effects and imbalances that cannot be remedied. The climate damage also implies intergenerational environmental damage, since it spreads indefinitely, causing future damage. The plaintiff argues that the defendant's conduct was held under violation of the Paris Agreement and that the international obligations internalized by Brazil are binding for the Judicial Branch, implying the determination of reparability of environmental climate damage. It presents a means of quantifying climate damage based on studies by the CADAF Project (Carbon Dynamics of Amazonian Forest), representing 160.34 tons of carbon emitted per deforested hectare; on a study developed by the Center for Management and Strategic Studies: "REDD in Brazil: an Amazonian approach", setting 161 tons of carbon per hectare; and on the social cost of carbon (SCC), arguing that there is a direct proportion between the number of hectares deforested and the generation of carbon, in line with the parameters set by the Amazon Fund. Therefore, the plaintiff argues that climate damage can be identified on an individual scale by multiplying the estimated GHG emissions from the activity (5,600 hectares multiplied by 161 tons emitted per hectare) by the SCC (based on the cost calculated by the OECD of 60 euros per ton). Thus, the deforestation generated the illegal emission of 901,600 tons of carbon, resulting in the obligation to pay the amount of R$292,118,400.00. As a preliminary injunction, it is requested that (i) the litigious nature of the property which is the subject of the action be recognized; (ii) the defendant be ordered not to transfer the occupation of the area to third parties; (iii) the defendant be prohibited from leasing or lending chainsaws and other deforestation tools; (iv) the defendant be prohibited from selling or donating oxen or agricultural products; (v) the blocking or unavailability of assets in the equivalent amount of R$292,118,400.00; (vi) the suspension or restriction of the defendant's access to tax benefits and credit lines; (vii) the defendant be ordered to implement carbon sinks. On the merits, the plaintiff claims that the defendant be condemned to (i) repair the environmental climate damage in ecological compensation; (ii) repair the interim climate damage; (iii) promote ecological compensation; (iv) promote financial compensation for illegal greenhouse gas emissions, with the amount of R$292,118,400.00 being reverted to the National Climate Change Fund; (v) promoting financial compensation to be set by the court for the amounts to be reverted to funds for preventing and responding to climate disasters; (vi) compensating the amount related to the disgorgement of profits; and (vii) confirming the requests made as a matter of urgency.

On July 12, 2024, a decision on the injunction was handed down in which the court granted, in part, the emergency relief requested to (i) order the defendant's assets to be made unavailable, up to a limit of R$292,118,400.00; (ii) order the defendant to promote the implementation of carbon sinks, considering for this purpose the emission of 901. 600 tonnes of carbon and, for abatement purposes, any recovery/restoration found in the deforested areas, which must be proven when the project is presented within 90 days, under penalty of a daily fine; (iii) suspend and prohibit the defendant's access to lines of financing with official credit institutions; (iv) suspend and prohibit the granting of tax benefits to the defendant; (v) inform national financial institutions of the processing of this lawsuit; (vi) prohibit the defendant from acquiring, selling, leasing or lending chainsaws, tractors and associated instruments, as well as prohibit the defendant from acquiring, selling, leasing or lending cattle or agricultural products, under penalty of a fine for each business act carried out; and (vii) prohibit the defendant from carrying out any business act involving the properties affected by the deforestation discussed in the case, under penalty of a fine for each business act carried out. The secrecy assigned to the decision was lifted. In addition, the initial petition was partially dismissed, and only the claims for the implementation of sinks and the adoption of environmental compensation measures relating to climate damage, for financial compensation for the social cost of carbon, and restitution of illicitly earned profits were processed.

IBAMA v. Dirceu Kruger (Illegal deforestation in the Amazon and climate damage)

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Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

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Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Actions or measures to adapt terrestrial systems to climate change.

A drought is an extended period of unusually dry weather marked by a significant and sustained lack of precipitation, falling below a specific threshold over a large area for more than a month

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

Activities that provide lodging, food, and entertainment services to guests, including hotels, restaurants, and resorts.

Zoning and spatial planning are both methods for guiding the distribution of people and activities in a space, and are regulatory restriction.

Activities that relate to the production of goods and services from forests.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

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This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

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Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

IBAMA v. Dirceu Kruger (Illegal deforestation in the Amazon and climate damage) - decision

Policy instrument

Risk

Impacted group

Greenhouse gas

Economic sector

Adaptation/resilience

Finance