The legislation allows certain developers to self-report their environmental impacts via an online process, which advocates claim will reduce bureaucratic hurdles. Riaño expressed deep concerns regarding this approach, particularly for mining projects, forecasting negative consequences for the Amazon region. The new regulations would also enable automatic renewal of project licenses without comprehensive environmental reviews, raising alarms about the potential for increased deforestation without proper oversight.

While supporters of the bill argue it will drive economic growth and facilitate renewable energy initiatives, detractors point out that it could escalate environmental disasters and infringe on the rights of indigenous populations. Riaño highlighted significant risks, estimating that over 18 million hectares of land, equivalent to the size of Uruguay, could lose protections under the new law.

Despite objections from Brazil's Environment Minister Marina Silva, the legislation has garnered support in Congress. If President Lula da Silva does not veto it by August 8, critics warn it could represent the most significant environmental setback in Brazil since the military dictatorship, which saw rampant deforestation fueled by infrastructure projects.