Importance of Environmental permits for developers following Government Reforms

Alejandra Hernández, Alegalis,  November 4, 2024

On 26 September 2024, Governmental Agreement 148-2024 came into force, reforming the Regulation on Environmental Evaluation, Control and Monitoring (RECSA) in Guatemala.

These reforms have the objectives of adjusting to the provision that agencies can only demand requirements expressly mentioned in laws or governmental agreements, established within the Law for the Simplification of Administrative Requirements and Procedures, to ensure efficient and effective institutional management; The same applies to extending by one year, with the deadline of 27 September 2025, for the regularisation of projects, works, industries or activities before the Ministry of Environment and Natural Resources, so that more people and companies can comply with environmental regulations, promoting mitigation measures to preserve environmental quality with a focus on sustainability.

The reforms to be highlighted are the following:

1. Articles 22 TER and QUATER are added, which establish in detail the requirements, documents and deadlines that must be met when submitting Environmental Instruments, according to the corresponding environmental assessment category (A, B1, B2, C and Registration Activities) of the project, work, industry or activity. It also establishes the requirements, documents and procedures for the application for the issuance of Licences.

2. Environmental assessments may no longer be interrupted by the filing of criminal complaints, which speeds up the analysis deadlines for each category of environmental assessment.

3. Article 36 establishes that files will be definitively archived if the proponent does not submit corrections within 6 months or does not push the file forward. This includes an archiving resolution that will oblige the proponent to start the procedure from scratch.

4. Article 38 allows for further changes to a project to be requested by the proponent, as long as they do not modify the assigned environmental category.

5. Article 44 requires that notices be published in Spanish and in the predominant language in the region of the project, work or activity, guaranteeing greater access to information.

6. Article 60 Bis allows for a request for an extension of 15 additional days to issue environmental licenses.

7. Article 109 eliminates fines based on the magnitude of environmental damage, allowing DIGARN to determine the value of the damage in national currency, which will be imposed as a sanction. In addition, Article 109 BIS introduces the possibility of signing payment agreements for fines resulting from sanctioning processes.

The purpose of this newsletter is to call on real estate developers to prioritise and consider the importance of environmental licensing in their projects. This reform of the Regulation is currently in force, adjusting to the Law for the Simplification of Administrative Requirements and Procedures, and extending the deadline for regularisation until 27 September 2025.

These reforms seek to facilitate compliance with environmental regulations, streamlining the assessment processes and ensuring greater transparency and efficiency.

It is crucial that real estate developers adapt to these changes, not only to comply with legal regulations, but also to promote sustainable development that preserves the country’s environmental quality.

Environmental licenses are a fundamental pillar to ensure that projects are executed within the current regulatory framework, avoiding penalties and guaranteeing the success of their activities.

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