Brazil issues historic $50 million fine for Amazon deforestation in landmark justice case

The Brazilian government says this case is “only the first” in a series attacking illegal deforestation

A federal court froze the assets of Dirceu Kruger, a Brazilian rancher and ordered him to pay just over BRL $292 million (around USD $50 million) to restore the thousands of hectares of the invaluable Amazon rainforest he has destroyed to create pasture for cows.

The news marks the largest ever civil case brought to court for climate-related crimes in Brazil and signifies further national efforts both to deter lawbreaking and repair some of the damage done via Brazil’s climate emergency fund.

This historic fine comes as a response to Kruger’s illegal destruction of 5,600 hectares (13,838 acres) of the Amazon rainforest, which he cleared using chainsaws and fires to convert the land into pasture for cattle grazing.

Kruger’s actions have had devastating consequences on this ecologically rich federal land located in municipalities such as Boca do Acre and Lábrea. Satellite imagery and on-camera confessions confirmed the extensive damage, which resulted in the release of 901,600 tonnes of carbon dioxide into the atmosphere. The fine was calculated based on a valuation of $65 per tonne of carbon, with the proceeds directed to Brazil’s national climate emergency fund.

However, the court noted that no action taken now could entirely undo the negative environmental impact of Kruger’s deforestation. In addition to the compensation, the court banned him from selling cows and agricultural products and buying related chainsaws, tractors, and other machinery.

In addition to the financial penalty, Kruger faces severe operational restrictions, including bans on selling cattle, agricultural products, and using heavy machinery. He is also required to restore the damaged land to its original state.

This landmark ruling represents a significant step in Brazil’s efforts to enforce environmental laws and achieve national emission reduction goals. While Kruger may appeal the decision, the ruling sets a strong precedent for holding individuals and corporations accountable for environmental destruction, echoing a broader global commitment to combating climate and biodiversity crises.