Lula's Third Term Shows Progress and Contradictions in Brazil's Environmental Policy

In his third term, President Luiz Inácio Lula da Silva has steered Brazil toward significant environmental diplomacy gains while grappling with inherent contradictions in its development model. Under Lula, Brazil has notably improved its international climate standing, marked by a 61.4% drop in Amazon deforestation by May 2026 compared to the prior year and Brazil's hosting of the influential COP30 environmental conference. This shift contrasts with the previous administration under Jair Bolsonaro, which saw increased illegal deforestation and weakened climate engagement globally.

However, despite these milestones, Lula's government faces challenges balancing environmental protection with economic growth, particularly as Brazil continues to rely on fossil fuel extraction. For example, oil production reached 5.531 million barrels per day in March 2023—highlighting tensions between green policy ambitions and energy development. Infrastructure projects such as the BR-319 highway have drawn environmental criticism due to potential deforestation risks.

In Congress, there have been setbacks in advancing robust environmental legislation, complicating efforts to align policy and practice. Still, progress is seen with the recent approval by the Chamber of Deputies of Project Law 6011/25, which aims to bolster agroforestry systems through the National Policy for Promotion of Agroforestry Systems (PNA-SAF). This initiative seeks to restore degraded lands, enhance rural incomes, and promote sustainable practices, including creating low-interest credit lines for rural producers and launching the Agroflor Brazil Seal to certify sustainable products.

The agroforestry policy also prioritizes support for family farmers and traditional communities, linking environmental preservation to economic benefits through carbon markets and environmental service payments. Training for rural extension agents will further bolster implementation. This law will undergo additional committee reviews before final approval.

Environmental experts note that while Lula's administration has made substantial strides in re-engaging Brazil with multilateral climate efforts and reducing deforestation, persistent contradictions between development ambitions and environmental goals remain critical challenges as Brazil navigates its global energy transition.