Brazilian Climate Litigation Platform
Type of Action
Direct Action of Unconstitutionality (ADI)
Court of origin
Federal Supreme Court of Brazil (STF)
Filing Date
03/2025
Original case number
7795
State of origin
Distrito Federal (DF)
Link to court of origin’s consultation website
https://portal.stf.jus.br/processos/detalhe.asp?incidente=7195552Summary
This is a Direct Action of Unconstitutionality (ADI) with a request for a preliminary injunction, filed by the National Confederation of General Insurance, Private Pension and Life, Supplementary Health, and Capitalization Companies (CNseg) seeking a declaration of the unconstitutionality of Article 56 of Federal Law 15.042/2024 (Brazilian Emissions Trading System Law). The disputed article requires insurance companies, open supplementary pension entities, capitalization companies, and local reinsurers to compulsorily acquire carbon credits or investment fund shares in these assets for a minimum of 0.5% per year of their technical reserves and provisions. CNseg argues that the provision has formal and substantive unconstitutionality defects, in the sense that insurers cannot be subject to mandatory investment, due to the provisions of the Complementary Law that regulates the sector. The argument is that the provision restricts freedom, free enterprise, and free competition and requires insurers, even though they are not the largest contributors to GHG emissions, to acquire carbon credits, placing an excessive burden on them for environmental protection. Within this context, the argument is that the credits have an uncertain real value, there is insufficient supply in the domestic market, and that the obligation implies the artificial creation of demand, which could harm insurers and other companies interested in acquiring the assets. As a preliminary injunction, the claim is seeking the immediate suspension of the article. On the merits, the claim is seeking the declaration of unconstitutionality, with ex tunc effects, of Article 56 of Federal Law 15.042/2024.
See morePlaintiff
Type of plaintiff
Defendant
Type of defendant
Main norms mobilized
Brazilian biomes
Not ApplicableGreenhouse Gas (GHG) emission sectors
Not ApplicableStatus
Pending
Type of case
Systemic
Climate in environmental licensing
Non-mentioned
Environmental and/or climate justice approach
Non-existent
Claim alignment with climate protection
Not aligned
Measures Addressed
Climate approach
Contextual approach
Document type
Complaint
Origin
Confederação Nacional das Empresas de Seguros Gerais, Previdência Privada e Vida, Saúde Suplementar e Capitalização (CNseg)
Date
03/2025
Brief description
The formal and material unconstitutionality of article 56 of Federal Law 15,042/2024 is defended and the request is made that the provision be declared unconstitutional with ex tunc effects.