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On May 12, 2026, the National Monetary Council (Conselho Monetário Nacional – CMN) approved adjustments to environmental rules applicable to rural credit disbursement with controlled and directed resources. The changes, outlined in CMN Resolution No. 5,303, modify Section 9 (Social, Environmental and Climate Impediments) of Chapter 2 (Basic Conditions) of the Rural Credit Manual (Manual de Crédito Rural – MCR). The adjustments introduce staggered implementation timelines based on rural property size to enhance operational feasibility and regulatory predictability. Financial institutions must verify illegal native vegetation suppression on rural properties using data from the Amazon Deforestation Monitoring Project (Projeto de Monitoramento do Desmatamento na Amazônia Legal por Satélite – Prodes), administered by the National Institute for Space Research (Instituto Nacional de Pesquisas Espaciais – INPE) and the Ministry of Environment and Climate Change (Ministério do Meio Ambiente e Mudança do Clima – MMA). Verification requirements apply to vegetation suppression occurring after July 31, 2019, with the following effective dates: January 4, 2027 for properties exceeding 15 fiscal modules; July 1, 2027 for properties between 4 and 15 fiscal modules; and January 3, 2028 for properties up to 4 fiscal modules. The resolution establishes a January 3, 2028 deadline for collective-use properties belonging to agrarian reform settlements and traditional communities. Additionally, the CMN now accepts alternative documentation demonstrating environmental compliance, including equivalent native vegetation suppression authorisation and environmental commitment agreements signed with competent state environmental bodies. Rural producers whose credit proposals were rejected under previous rules may resubmit applications. These measures aim to ensure rural credit access for producers complying with environmental control mechanisms while allowing adequate time for operational adjustment across all involved entities.

On May 12, 2026, the National Monetary Council (CMN) adopted Resolution No. 5,303 amending Section 9 of Chapter 2 of the Rural Credit Manual (MCR) relating to social, environmental and climate-related impediments applicable to the granting of rural credit. The amendments establish phased implementation dates for financial institutions’ obligation to verify whether native vegetation suppression occurred after July 31, 2019 on rural properties associated with rural credit operations. Financial institutions must conduct the verification using data made available by the Ministry of the Environment and Climate Change through the Brazilian Biomes Monitoring Program (BiomasBR) and the National Institute for Space Research (Inpe) . Under the revised framework, the verification requirement will apply from: January 4, 2027 for properties larger than 15 fiscal modules; July 1, 2027 for properties larger than four and up to 15 fiscal modules; and January 3, 2028 for properties with up to four fiscal modules. The Resolution also establishes that the January 3, 2028 implementation date will apply to collectively used properties occupied by agrarian reform settlements and traditional peoples and communities where the Rural Environmental Registry (CAR) refers to the collective perimeter. In addition, the amendments expand the forms of documentation that financial institutions may accept to demonstrate environmental regularity, including Vegetation Suppression Authorizations (ASVs), equivalent environmental authorizations and Environmental Commitment Agreements entered into with competent state environmental agencies for the regularization of properties associated with native vegetation suppression. The Resolution entered into force on May 12, 2026.

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Brazil's Monetary Council Adjusts Environmental Requirements for Rural Credit

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Brazil's Monetary Council Adjusts Environmental Requirements for Rural Credit