On October 28, 2022, the NGO, Instituto Internacional Arayara filed a Public Civil Action (environmental class-action) against the National Environmental Agency (Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis – IBAMA), the Federal Union, the Rio de Janeiro’s State Environmental Agency (Instituto Estadual do Meio Ambiente – INEA), the State of Rio de Janeiro, and the companies EDF Norte Fluminense S.A. - Usina Termelétrica Norte Fluminense S.A., Global Participações em Energia S.A., Usina Termelétrica Nossa Senhora de Fátima and Litos Energia Ltda. 

The plaintiff seeks the annulment of the previous environmental licenses issued by IBAMA for thermoelectric projects located in the municipality of Macaé, in the state of Rio de Janeiro. It also seeks the annulment of the (i) water resources use right grants and (ii) Water Availability Reserve Certificates referring to the Macaé and Ostras River Hydrographic Basin, granted by INEA for the same projects. The plaintiff institution argues that the installation of a thermoelectric complex in the region, consisting of eighteen enterprises, is contrary to the need for investment in a clean energy matrix and the fight against climate change. It argues that there should be a determination that licensing agencies require, prior to issuing licenses: (i) a Strategic Environmental Assessment (AAE) for the analysis of synergistic and cumulative impacts of enterprises to be installed in the same hydrographic basin; (ii) the updating of the plan of the Hydrographic Basin of the Macaé and Ostras River and the study of water availability of the Basin; and (iii) the presentation of a Climate Diagnosis, with an inventory of Greenhouse Gas (GHG) emissions by the enterprises.

The plaintiff argues that the failure to conduct AAE prior to the issuance of the licenses invalidates the administrative procedures already carried out, since it was not possible to investigate the various cumulative impacts of the activities to be licensed. It is emphasized that emissions of pollutants by thermoelectric plants contribute to air pollution, damage to human health, and loss of agricultural productivity. From the climatic point of view, it is argued that in order to keep the limit of planetary temperature increase at 1.5°C, to fulfill the commitments made in the Paris Agreement, COP 26 and NDCs, the installation of new enterprises that use fossil fuels cannot be allowed. The plaintiff highlights the consolidation of jurisprudence favorable to environmental and climate issues at the Supreme Federal Court, exemplified by the judgment of ADPF 708 (Climate Fund), which recognizes that current Brazilian measures to address climate change are in disagreement with its international commitments. The plaintiff requests, as a preliminary injunction the suspension of the environmental licensing processes of the plants until the defects in the Environmental Impact Studies (EIA/RIMAs) and the defects related to atmospheric dispersions are remedied, including, among others (i) the determination that the Climate Diagnosis be presented and considered for the analysis of the environmental licensing processes, (ii) IBAMA be ordered to include the guidelines set forth in the National Policy on Climate Change (PNMC), the guidelines of the Rio de Janeiro State Policy on Climate Change, and the preparation of a AAE in the terms of reference of the licensing processes for the power plants and (iii) the companies be ordered to refrain from construction work and activities at the thermoelectric complex until the AAE, basin plan update, hydric availability study, and other studies required in the lawsuit have been conducted. In the final stage, it is requested that the preliminary injunction be confirmed, reiterating the requests, with the inclusion of the requirements for the annulment of the environmental licensing processes, licenses and permits already granted by the environmental agencies. 

IBAMA, the Federal Government, Litos Energia Ltda, Usina Termelétrica Norte Fluminense S.A, the State of Rio de Janeiro, INEA and Global Participações filed answers. In relation to climate aspects, IBAMA argued that the terms of reference used for the licensing of the project included the need for a synergistic assessment of atmospheric gas emissions from existing plants and those to be implemented. 

An interlocutory appeal was filed by the plaintiff against the decision of the lower court that denied the preliminary injunction requested by the appellant and upheld the preliminary objection of lack of standing of the Union and the State of Rio de Janeiro. The appeal argued for the need to grant suspensive effect to the appeal in order to guarantee an ecologically balanced environment, essential to the healthy quality of life of the region's population, considering the socio-environmental impacts that the projects will cause. Among the arguments mentioned, the need for an Environmental Impact Assessment (EIA) and a climate diagnosis, in accordance with the methods developed by ABRAMPA – Brazilian Association of Members of the Public Prosecutor's Office for the Environment – to verify the emission of greenhouse gases and air pollution by the projects, was highlighted. Among other issues, the following was requested: (i) the granting of suspensive effect to this appeal in order to immediately suspend the environmental licensing processes of the plants that are the subject of this action until the judgment on the merits of this interlocutory appeal; and (ii) the fully justified judgment of this Appeal on Points of Law in order to overturn the challenged decision, as well as the recognition of the passive legitimacy of the State of Rio de Janeiro and the Union.

The appeal was unanimously denied, as it was considered that the appeal did not fall within the grounds for reforming the decision.

In June 2026, a judgment was issued declaring the claims unfounded. The court understood that there are no regulations to support the plaintiff's claims. It argued that the National Environmental Policy only generically provides for the possibility of conducting environmental studies and environmental impact assessments. It understood that environmental legislation does not stipulate the need for specific obligations, especially the carrying out of Strategic Environmental Assessments (SEA) and Climate Diagnosis. It pointed out that the request for air quality assessment is broad, as pollution is a problem caused by sources from various sectors and cannot be addressed in a specific action.

The Arayara Institute filed an appeal.

Instituto Internacional Arayara v. IBAMA and others

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Instituto Internacional Arayara v. IBAMA and others - judgment

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Instituto Internacional Arayara v. IBAMA and others - judgment

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Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance