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Instituto Arayara vs. ANP and others on auction of oil exploration blocks in the Amazon Basin - reply

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Instituto Arayara vs. ANP and others on auction of oil exploration blocks in the Amazon Basin - complaint

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On December 6, 2023, the NGO Instituto Arayara de Educação e Cultura para a Sustentabilidade filed a public civil action (environmental class-action) against the National Agency for Petroleum, Natural Gas and Biofuels (ANP), Brazil’s Federal Environmental Agency (IBAMA), and the Federal Government. This lawsuit is part of a set of 6 environmental class actions filed against the 4th Bid Cycle for oil exploration blocks. The aim is to challenge the auction of oil exploration blocks located in the Amazon Basin. 

The plaintiff argued that the inclusion of this set of blocks is illegal as it overlaps with Conservation Units (Brazilian Protected areas), buffer zones, environmental protection areas and areas where endangered species occur. The plaintiff argued that the climate emergency scenario requires an energy transition towards clean energies and a reduction in GHG emissions, which is incompatible with the expansion of oil exploration. As a preliminary injunction, it requested that the offer in the 4th Permanent Offer Cycle of the blocks in the Amazon Basin in Sector AM-T-82 be suspended until the technical analysis that demonstrates the socio-environmental viability is carried out, in particular with reasoned opinions from bodies such IBAMA. On a definitive basis, they request that the contested blocks be excluded from the Bid Cycle. 

In March 2024, IBAMA and ANP presented their defenses, stating that the alleged overlapping of an exploration block with Conservation Units does not mean that it should be excluded from the bidding phase, in accordance with current regulations, but that sensitive areas are observed in the procedure. 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 1, 2024, the Federal Government filed its defense. In addition to addressing the licensing issues already dealt with by other federal bodies, it 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.

Instituto Arayara vs. ANP and others on auction of oil exploration blocks in the Amazon Basin

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

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

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.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

People with different national or cultural traditions from the dominant population

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

Climate change can have a range of impacts on technological system. Extreme weather events can cause infrastructure failures like power outages or damage to roads and bridges, as well as the impacts from waste following natural disasters. Human activities also cause technological impacts, such as the risks posed by oil spillage and leaks.

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

Conditions that enhance the feasibility of adaptation options. Enabling conditions include finance, technological innovation, strengthening policy instruments, institutional capacity, multi-level governance and changes in human behaviour and lifestyles.

Climate change impacts our society by disrupting the natural, economic and social systems we depend on. Physical hazards and underlying vulnerabilities can lead to increased resource competition for food and water, which can heighten the risk of conflict.

This sector provides communication services, software development, and IT solutions.

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

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Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Instituto Arayara vs. ANP and others on auction of oil exploration blocks in the Amazon Basin - reply

Policy instrument

Risk

Impacted group

Just transition

Fossil fuel

Economic sector

Adaptation/resilience

Finance