In a historic decision handed down on July 12, 2024, the 7th Federal Environmental and Agrarian Court in Manaus ordered the blocking of Dirceu Kruger's assets and resources, totaling R$292,118,400.00. Kruger is accused of illegally deforesting 5,600 hectares in the Amazon, in a lawsuit filed by the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA). The pioneering decision aims to hold him responsible for the climate damage caused, differing from other environmental rulings in that it focuses specifically on climate impacts.
The decision stands out because it is based on the need for full reparation for climate damage, an innovative approach that recognizes the seriousness of this damage compared to other forms of environmental degradation. Kruger's deforestation resulted in the emission of approximately 901,600 tons of carbon, compromising crucial carbon sinks and significantly impacting the biomass of the Amazon. The amount of financial compensation was calculated based on the social cost of carbon, taking into account the harmful effects of greenhouse gas emissions. On the decision, Gabriel Mantelli, Executive Director of Ação Climática, emphasizes: "The Brazilian courts are moving forward in the fight against deforestation and climate change, holding the guilty parties financially responsible and setting historic precedents for environmental and climate civil liability."
In addition to blocking his assets, the ruling forbids Kruger from carrying out any transactions involving the deforested properties, as well as leasing or lending agricultural equipment, under penalty of a fine of R$1,000,000.00 per act carried out. He is also prevented from selling or donating bovine specimens or agricultural products.
The Brazilian Federation of Banks (Febraban) and the National Registry of Deeds and Documents were notified to implement restrictions against the defendant and to register the litigious nature of the deforested area. In addition, entities such as Fecomércio/AM and Sistema FIEAM were instructed to communicate the prohibitions to their members.
This decision sets an important precedent in holding people accountable for climate damage resulting from illegal deforestation, promoting financial compensation and the adoption of measures to mitigate and adapt to the effects of climate change.