Conectas Direitos Humanos v. BNDES and BNDESPAR
Jurisdiction: 9th Federal Civil Court of the Federal District of Brazil
Principle law(s): Law 12.187/2009, establishing the National Policy on Climate Change (NPCC), regulated by Decree 7.390/2010
Side A: Conectas Direitos Humanos (Ngo)
Side B: BNDES and BNDESPAR (Government)
Core objectives: Whether the Brazilian development bank and it's investment arm should align their investments with the goals of the Paris Agreement.
SummaryOn June 21, 2022, Conectas Direitos Humanos filed a claim against BNDES (Brazil's Development Bank) and BNDESPar, the bank's investment arm responsible for managing its shareholdings in various Brazilian companies held by the bank. According to Conectas, this is the world's first civil climate action against a national development bank. Although BNDESPar, which is publicly owned, follows an Environmental and Social Policy for Operating in Capital Markets, which bans support for companies with a track record of environmental crimes and modern-day slavery, this policy does not include climate criteria. The company also does not report the carbon emissions associated with its investment portfolio and still maintains equity positions in sectors that are among the most carbon-intensive in the Brazilian economy. The lack of rules or protocols for assessing the impacts of its investments on the climate crisis are in violation of the Brazil's commitments under the Paris Agreement and the country’s own PNMC (National Policy on Climate Change), among other provisions.
Related laws and policies
Law 12.187/2009, establishing the National Policy on Climate Change (NPCC), regulated by Decree 7.390/2010
This law creates the NPCC with the following key areas of concern: combining climate protection with socio-economic development; reducing anthropogenic GHG emissions from all its sources and strengthening GHG sinks; adaptation; preservation, conservation and recuperation of national biomes; land ...