1E9Ct5D

indigenous peoples and communities, and climate change, in addition to regulations enacted by theentities and bodies in charge of implementing the actions set out in the mentioned policies, especiallythose comprising the National Environmental System (Sistema Nacional do Meio Ambiente).Also worth noting is the development of the environmental permitting system, which has becomeincreasingly complex, especially due to the enhancement of control systems (assessments, zoningand specific permits) and the introduction of cultural (archeology) and social (affected communities,such as Indians and quilombolas) aspects in the permitting process.To ensure compliance with such vast legislation, which is based on command and control instruments,there are specific laws regulating civil (strict) liability, administrative liability and criminal liability forenvironmental violations, such as Law 6,938/1981 and Law 9,605/1998.Besides legislation, the financial architecture of projects – particularly infrastructure projects – requirescompliance with sustainability policies and indexes used by financial institutions (Equator Principles,for example), and sustainability reports have been using international methodologies (GlobalReporting Initiative) as reference. Another market initiative worth noting is the creation of the BusinessSustainability Index (Índice de Sustentabilidade Empresarial – ISE), which introduced a tool thatallows for a comparative analysis of the performance of companies listed on the BM&FBOVESPAbased on economic efficiency, environmental balance, social justice and corporate governance.In practical terms, it is important for entrepreneurs and investors to carry out their business in Brazilaware of the environmental laws applicable to their activities – whether due to the need to previouslyassess the viability and risks involved or due to the inevitable need to review the applicable permittingsystem before implementing a project (applicable licenses, authorizations and environmentalassessments, besides interfaces with other regulatory authorizations), or to adapt to new or updatedenvironmental laws, even when the respective project or activity already has an operating license. Inaddition, successor liability arising from the acquisition of a company (whether through the acquisitionof control or purchase of assets) that has environmental liabilities requires an environmental audit tobe conducted prior to the transaction – both from a legal and from a technical point of view – includingin the event of transfer of environmental permits as a result of a purchase of assets.Besides imposing on companies a series of obligations, the environmental laws also create manyopportunities for investment in green economy. For example, the Rio de Janeiro Stock Exchange(Bolsa de Valores do Rio de Janeiro – BVRio) is beginning to develop the market for forest assets,waste (reverse logistics), carbon (emissions) and effluents with the purpose of trading credits asprovided in the law, thus facilitating compliance with environmental obligations.Federal Law 12,305/2010, which introduced the National Solid Waste Policy (Política Nacional deResíduos Sólidos) provides for the closing of all dumps currently in operation in Brazil and establishesan environmentally friendly waste disposal in 2014. In this field, excellent investment opportunities in79