Brazilian court throws doubt on ‘economic harm’ actions

A court in Brazil has ruled that economic concerns cannot override environmental factors, as part of a decision to ban the burning of sugar cane stalks.

In a move that could set a precedent, the highest court in Sao Paulo – a region which produces over half of the sugar cane in the world’s sixth-largest economy – said that environmental considerations should trump economic ones.

Specifically, the court stated that ‘economic harm’ arguments can no longer override concerns over environmental impact.

Companies had maintained that being forced to mechanically remove stalks rather than manually burn them would increase unemployment.

Many firms in the region have already pledged to stop burning the stalks over the next five years, and Sao Paulo already has a ban on daytime burning because of public health concerns.

The judgement is thought to have implications for other industries. Experts have suggested that the decision may be relevant to sectors such as dam construction – in which ‘economic harm’ arguments are used to support dam construction in spite of their huge environmental consequences, because the Brazilian economy would suffer if they were not built.