Tocantins

Brazil

Ceará

Roraima

Espírito Santo

Rondônia

Rio Grande do Sul

Goiás

Santa Catarina

Minas Gerais

São Paulo

Maranhão

Sergipe

Mato Grosso do Sul

Mato Grosso

Paraíba

Pará

Alagoas

Pernambuco

Acre

Amazonas

Piauí

Rio de Janeiro

Bahia

Paraná

Amapá

Distrito Federal

Rio Grande do Norte

On January 23, 2025, the Brazilian Institute for Consumer Protection (IDEC) filed a judicial inquiry against the car rental company Localiza Rent A CAR S/A. This action is part of a set of two inquiries proposed by IDEC alleging greenwashing and problems in the use of carbon credits from the voluntary market. In this case, Localiza is questioned about offering rental services with greenhouse gas (GHG) emissions offsets through its ‘Carbon Neutrality’ and ‘Commitment to the Climate’ programmes. However, IDEC believes that this initiative may constitute greenwashing due to the imprecise origin of the carbon credits, the apparent lack of information on the real benefits, and the effectiveness of the methods used to achieve the stated objectives. IDEC believes that there are indications of greenwashing due to gaps in the information collected through the respondent's website. Furthermore, the offer is not in accordance with consumer law, as it violates objective good faith, as well as the basic consumer right to freedom of choice and adequate and clear information, all of which are provided for in the Consumer Protection Code. The payment of an additional amount in the car rental contract to offset GHG emissions requires justification in order to be considered an offer that complies with consumer rights. However, consumers are misled due to a lack of adequate information and thus believe that the respondent will provide a service that has less impact on the environment. Greenwashing is characterised as unfair practices that downplay risks and threats to socio-environmental rights. Therefore, it is believed that the respondent uses this resource because GHG emission compensation programmes have a positive impact on its image. Firstly, because the service provided would be guided by ESG standards, generating a favourable image for the company. In addition, it reaches a fraction of consumers who base their consumption on social and environmental criteria. The purpose of the Judicial Inquiry is to enable Localiza to provide detailed explanations of its GHG emission compensation practices and to allow the respondent to correct any inconsistencies. The plaintiff requests that documents be provided to prove the veracity of the benefits of the programes offered in the car rental service, as well as that the questions presented about the programmes be answered.

On September 11 2023, Brazil’s Federal Environment Agency (“IBAMA”), filed a public civil action (environmental class-action) against two individuals, Brandão de Souza Rezende and Jovino Moreno de Miranda seeking compensation for environmental and climate damages. The plaintiff claims that 489,0545 ha (hectares) of native Cerrado forest were cleared at the Jatobá farm without prior authorization from the competent environmental agency. It highlights the great importance of the Cerrado and that the advance of illegal deforestation of the biome contributes to the climate crisis. According to remote sensing images, the plaintiff claims that the area continues to be exploited (even though it has been embargoed by IBAMA), without regeneration measures having been adopted. It argues that the defendants are civilly liable for the specific environmental damage caused by the irregular suppression of native forest in the Cerrado and the existence of resulting environmental damage that includes damage to fauna, soil, climate and biodiversity, among other harmful consequences related to deforestation. Several measures to secure the prohibition of further exploitation of the deforested area are requested as an injunction. In a definitive manner, it is requested that the defendants be ordered to (i) recover an area corresponding to the deforested one, (ii) pay collective moral damages in the amount of R$3.693.828,63, (iii) pay for the transitory and residual damage caused to ecological heritage, in addition to compensation for the economic profit obtained illegally, including climate damage.

On October 10, 2023, the judge did not grant the injunction and IBAMA filed an Interlocutory Appeal. 

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Tocantins

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