License to pollute? A longitudinal analysis of environmental performance, compliance, and enforcement in 232 licensed projects in Brazil

Abstract

Environmental legislation in most countries mandates a wide range of development projects to obtain environmental licenses prior to construction and operation, thus hoping to prevent and control adverse impacts. Authorities almost always decide to grant such licenses but conditioned to the implementation of mitigation and compensation programs. The effectiveness of such programs has long been a matter of controversy due to the weak accountability of licensed projects’ environmental performance. Aware of this knowledge gap, this article set out to: (1) evaluate the norms and procedures of post-approval control in Minas Gerais, a large Brazilian jurisdiction that requires frequent evaluations of environmental performance; and; (2) evaluate post-approval environmental performance and enforcement in a sample of 232 licensed projects. The evaluation of norms and procedures was based on best practice criteria drawn from the literature. The content of hundreds of documents (e.g., performance evaluations, sanctions, license conditions) associated with the 232 projects was coded and organized in spreadsheets, thus allowing for statistical analysis. Findings suggest that the post-approval legal requirements of Minas Gerais are similar and at times stronger than those commonly found in international jurisdictions. However, the content analysis of post-approval records revealed numerous implementation problems. Most projects (74%) reported poor performance issues and almost 90% of the projects received administrative sanctions (e.g., fines) due to legal violations. The state authority lacks clear post-approval decision-making criteria and reacts late to performance problems. Findings suggest that impact assessment and licensing in Minas Gerais are unable to prevent environmental pollution. The study discusses its implications and likely solutions.