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Litigation

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petition

Instituto Internacional Arayara de Educação e Cultura vs. Federal Union, Ministry of Mines and Energy and Others - petition

reply

Instituto Internacional Arayara de Educação e Cultura vs. Federal Union, Ministry of Mines and Energy and Others - reply

ruling

Instituto Internacional Arayara de Educação e Cultura vs. Federal Union, Ministry of Mines and Energy and Others - ruling

Filing Year For Action

In March, 2026, the Arayara International Institute of Education and Culture filed a Public Civil Action (ACP) with a request for a preliminary injunction against the Federal Government, the Ministry of Mines and Energy (MME), the Energy Research Company (EPE), and the National Electric Energy Agency (ANEEL) due to the inclusion of coal-fired thermoelectric plants in the 2026 Capacity Reserve Auction in the Form of Power (LRCAP 2026). It argued that the aforementioned auction, conducted by the MME, presents flaws in its justification and deviation from its purpose by allowing the participation of coal-fired plants in a mechanism intended for contracting flexible power to meet peak demand in the National Interconnected System. It also argued that these plants lack the technical capacity for rapid response due to their low operational flexibility, long start-up times and need for continuous operation, which disqualifies them as a suitable source for capacity reserve. 

The complaint alleged that the auction model unduly favors these power plants, guaranteeing longer operating times and revenue predictability, which generates competitive distortions, risks of tariff increases, and potential future litigation. It also highlighted that this structure encourages the maintenance of highly emitting sources, increasing greenhouse gas emissions and exacerbating the impacts of climate change. Finally, it argued that the inclusion of coal contradicts climate commitments made by Brazil, the National Energy Transition Policy, and the constitutional principles of environmental protection, constituting environmental regression and incompatibility with the transition to a low-carbon energy matrix. 

The complaint seeks a preliminary injunction to suspend the administrative act by the Ministry of Mines and Energy (MME) that included the possibility of participation by coal-fired thermal power plants in the LRCAP 2026 (Brazilian National Auction for the Reduction of Coal-Fired Power Plants). Additionally, it requests the subsequent exclusion of proposals by similar projects, as well as the prohibition of any acts that would continue the auction with regard to such plants. On the merits, the plaintiff requests that the action be granted to declare the nullity of the administrative acts that authorized the inclusion of the coal-fired thermal power plants in the LRCAP 2026, with their definitive exclusion from the bidding process, as well as the permanent prohibition of any acts continuing the auction in relation to these projects.

Instituto Internacional Arayara de Educação e Cultura vs. Federal Union, Ministry of Mines and Energy and Others

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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.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

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

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

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

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

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.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

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

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

Energy derived from biological compounds that are renewable due to their short life cycle within the carbon dioxide cycle.

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.

Electrical energy generated from mechanical devices driven by flowing fresh water.

Production of electricity and heat from solar irradiation.

Kinetic energy of airflow transformed into useful energy, mostly electrical energy.

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.

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.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

People who have left their homes, whether through force, voluntarily, or a mixture of both

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.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

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

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector involves the wholesale and retail selling of goods.

This sector involves activities to move goods and people, alongside the storage of products.

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

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

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

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

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

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.

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.

Instituto Internacional Arayara de Educação e Cultura vs. Federal Union, Ministry of Mines and Energy and Others - reply

Target

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance