• Categories
  • Archives

Brazil Creates Fund to Collect Fines for Eco Damages

Brazil’s National Environmental Compensation Fund was launched Thursday, March 16, by the Brazilian Minister of the Environment, Marina Silva, in an agreement between the Ministry, the IBAMA (Brazilian Institute of Environment and Renewable Natural Resources) and Caixa Econômica Federal (Federal Savings Bank).

Companies that cause harm to the environment in the course of executing their projects can make recompense by depositing money in a fund in the Caixa Econômica Federal. The fund will be used for the creation, maintenance and implementation of parks, reserves, and ecological stations.

The Minister said that the agreement will give transparency, efficiency, and agility to fulfilling this type of legal obligation.

Up to now the companies themselves have been administering the application of these resources in Conservation Units, based on amounts fixed by the IBAMA in accordance with the extent of damage caused and never less than 0.5% of the total investment in the project.

Silva explained that payment of the compensation is mandatory, although adhesion to the fund is voluntary. The IBAMA received US$ 142.4 million (300 million reais) last year in compensation commitments by companies and is currently in the process of trying to collect another 40% of this value.

According to the Minister, some of the funds will also be used to expedite processes of land regularization. She recalled that one of the obstacles to the creation of Conservation Units is the matter of indemnifying individuals who possess property in these areas.

The fund, she went to say, is destined for units chosen in accordance with the IBAMA’s criteria: Properties with all their legal documents in order will receive priority, and those with pending legal questions will not be included in this process.

The Minister also pointed out that the companies that adhere to the National Environmental Compensation Fund will be benefited, because, "when the law is respected, and these resources are destined for environmental protection, the company is associating its image with the preserved areas."



  • Show Comments (1)

  • Guest

    Collecting funds…..
    …has been a specialty of Lula and his government !
    They really excelled at it !
    so much funds were collected that they forgot to collect taxes….as only 10 % of citizens are subject to an income tax !


Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

Brazil Construction Industry Draws Attention in Middle East

Brazil’s participation in the Big 5 Show, the Middle East’s biggest trade show for ...

Brazil Hands Out US$ 3.7 Billion for 2008/2009 Crop

State-owned Bank of Brazil (BB) has disbursed 6.7 billion Brazilian reais (US$ 3.7 billion) ...

All Brazil Needed: An American Martyr!

There are cadavers and cadavers, isn’t it true? Some are sacred. Others aren’t worth ...

Brazilian Executives Haven’t Been So Gloomy in Two Years

A survey by the Getúlio Vargas Foundation of the manufacturing sector (Sondagem Conjuntural da ...

Brazil: IMF Praises Fallen Palocci and Welcomes Incoming Mantega

Rodrigo de Rato, Managing Director of the International Monetary Fund (IMF), issued the following ...

Brazilian crowd

Brazil, a Nation Divided Between North and South, Middle Class and Masses

On October 29, Luiz Inácio Lula da Silva won the second round of Brazil’s ...

The Poor Plight Is the Wealthy Nations’ Responsibility, Says Brazil’s Lula

Brazilian President Luiz Inácio Lula da Silva reinforced his appeal to wealthy nations to ...

A Silver Lining for Brazil’s Agriculture: the Stronger Dollar

Agribusiness in Brazil has already been affected by the economic crisis, but at a ...

CVRD Expands Brazilian Steel Industry Partnering with ThyssenKrupp

Brazil’s metals and mining company Vale do Rio Doce (CVRD) announces that it has ...

Echoing Beneath the Fingers

The speech in its entirety, in Portuguese:By Brazzil Magazine Inside the old Helms Bakery ...