São Paulo - Green Economy

SÃO PAULO

GREEN ECONOMY

INTRODUCTION The State of São Paulo has 645 municipalities and about 45 million inhabitants, a diversified economy and an annual GDP that, compared to other countries, would place it among the 25 largest economies in the world.

It is the first subnational government in Latin America to join the UN campaigns Race to Zero and Race to Resilience through a decree, with the ambition of respectively reaching neutrality in Greenhouse Gas (GHG) emissions by the year 2050 and obtaining a consistent adaptation framework for the expected impacts.

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SÃO PAULO: A COUNTRY WITHIN A COUNTRY

3rd largest economy and consumer market in Latin America

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South America’s largest port and airport

32% of the Brazilian GDP

Headquarters of 60% of Fortune 100 Latam companies

The world’s largest producer of sugar, ethanol, and orange juice

Home to 80% of Latin American business events

19 of the 20 best highways in Brazil

Largest leisure and entertainment center in Latin America

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DIVERSED AND QUALIFIED WORKFORCE

Home to 4 of the top 10 universities in Latin America

70% of the country’s skilled labor

39% of Brazil’s PhDs and 13,043 postgraduates in the 3 state universities alone

63% of the population with 11 years or more of study (Brazilian average is 51%)

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31st largest world population 8,8

Sweden Austria

323,8

348,1

Denmark Colombia

388,7 372,1

403,3

Norway Ireland

446,3

Austria

Singapore

449,7

Belgium Argentina

530,8 529,6

Sweden

592,2

Poland

703,1 603,4

38,0

São Paulo

Switzerland

Netherlands

10,3 10,2

10,6

Portugal

Czech Rep.

17,2 11,4

Netherlands Belgium

19,5

Romenia

Poland

46,8 45,5

Spain São Paulo

82,9

Population - million 909,1

66,5

UK 60,4

France Italy

67,0

Germany

SÃO PAULO: A COUNTRY WITHIN A COUNTRY

GDP – US$ billion

21st world economy

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CLIMATE AND ENERGY CLIMATE ACTION PLAN 2050 (Plano de Ação Climática 2050): São Paulo is committed to delivering its plan in 2022. The guidelines presented at COP-26 were widely debated with the scientific community, society, and various state and national economic sectors.

ENVIRONMENTAL AGREEMENT (Acordo Ambiental SP): AA pioneering initiative to reduce GHG emissions and to increase good environmental practices through voluntary adherence by the private sector industries, companies, associations, and São Paulo local governments.

Launched in 2019, it already has more than 800 supporters.

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VEHICULAR POLLUTION CONTROL PLAN (Plano de Controle de Poluição Veicular - PCPV) and Stationary Sources Emission Reduction Program (Programa de Redução de Emissões de Fontes Estacionárias - PREFE): Brazil’s most advanced system for controlling and inspecting emissions of pollutants such as vehicular and industrial, which contributes to climate resilience.

GREENER ETHANOL Protocol (Protocolo Etanol Mais Verde): a pioneer in the large-scale use of ethanol from sugarcane, the state has signed a partnership with the sugar-alcohol sector to reduce its carbon footprint. In ten years, the program has eliminated the burning of sugarcane and avoided the emission of more than 11 million tons of CO2 and 71 million tons of air pollutants.

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SÃO PAULO LOW CARBON AGRICULTURE PLAN (Plano de Agricultura de Baixo Carbono - ABC): it promotes the adoption of sustainable technologies used by rural and agroindustrial producers and reduces GHG emissions, besides increasing CO2 fixation in the soil and vegetation.

It promotes efficiency in production and adaptation to climate changes by the agriculture and cattle-raising industries.

RESILIENT MUNICIPALITIES IN THE STATE OF SÃO PAULO PROGRAM (Programa Municípios Paulistas Resilientes – PMPR): it provides geodata on the state and trains managers to identify climate vulnerabilities in cities and prepare adaptation and resilience plans.

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NATURAL DISASTERS AND RISKS REDUCTION PROGRAM (Programa de Redução de Riscos e Desastres Naturais - PDN): a program for the support of São Paulo municipalities by the Civil Defense in the prevention of natural disasters and geological risks.

GREEN CITY PROGRAM (Município VerdeAzul): it strengthens and trains the local environmental governance in the 645 municipalities of the state and ranks the cities that adopt more sustainable actions.

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NATIVE FORESTS AND BIOECONOMY

BIODIVERSITY HERITAGE: 154 Protected Areas throughout the State of São Paulo, corresponding to 20% of the state’s territory. Conserves and preserves regional biodiversity and ecosystem services in line with the socioeconomic inclusion of traditional peoples and communities, a measure that aims to foster sustainable development, ecotourism and scientific research.

CONTROL OF DEFORESTATION: increase of 5% of the native vegetation cover in the state, which jumped from 18% in 2010 to 23% in 2020 and means an increase of 1.3 million hectares. Currently the state has 5.6 million hectares of native forest in various stages of recovery.

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REFLORESTA SP: The largest forest recovery program in Brazil that aims to reforest 1.5 million hectares of native vegetation by 2050: 800,000 hectares will be carried out through the Agro Legal initiative and 700,000 hectares will have green financing and payments for environmental services, for ecological restoration, and fostering of the bio economy.

The amount of BRL200 million will be made available for the actions from the Fundo Estadual de Prevenção e Controle da Poluição FECOP (State Pollution Prevention and Control Fund).

AGRO LEGAL PROGRAM (Programa Agro Legal): environmental regularization of about 390,000 rural properties registered in the Rural Environmental Registry. It promotes social, economic, and environmental balance. The program also aims for the recovery of 800,000 hectares of native vegetation.

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SPRINGS PROGRAM (Programa Nascentes): ecological restoration and protection of springs areas with the planting of almost 40 million seedlings since 2015; revitalization of more than 23,000 hectares of native forest, which corresponds to more than 32,000 official soccer fields (July/21).

ENVIRONMENTAL ICMS LAW (ICMS Ambiental): it redirects the transfer of BRL 5 billion to São Paulo municipalities, over ten years, for compensation and performance in environmental actions. It has four axes: biodiversity preservation, biodiversity restoration, water safety and energy generation, and solid waste management.

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LEGAL WOOD (Madeira Legal): inspection and requirement of the certificate of native wood coming from other Brazilian states, which contributes to the control of deforestation in the Amazon region.

ENVIRONMENTAL PROCON-SP (Procon-SP Ambiental): task force against the illegal sale of native wood.

FIRE FIGHTING OPERATION (Operação Corta-Fogo): BRL 18 million will be invested, in 2021, invested in preventive actions and the fighting of forest fires in protected areas.

DEFENSE OF WATER OPERATION (Operação Defesa das Águas): environmental supervision and actions to curb irregular construction around the dams.

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SUSTAINABLE AGRICULTURE

AGRO-ECOLOGICAL TRANSITION PROTOCOL (Protocolo de Transição Agro-ecológico): it is an instrument created to support and enable the gradual process of changes from the conventional production system to the organic production system, based on the principles and practices of agroecology and focusing on family farmers, urban and peri-urban, rural settlements, traditional communities, among other groups in situations of social vulnerability.

SÃO PAULO AGRIBUSINESS IN 2020: 8.27% growth in the sector’s GDP. It had the largest participation in the historical series of the state GDP recorded since 2008 (14%).

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INCENTIVES FOR RURAL PRODUCERS AND RECORD INVESTMENT IN AGRICULTURAL RESEARCH: BRL 52 million released in 2021 to modernize research laboratories in the capital and countryside.

RURAL ROUTES PROGRAM (Programa Rotas Rurais): platform with all the digital addresses of the rural zone of the state to locate rural roads on official maps. Around five thousand kilometers of roads have already been identified.

SAFE+ AGROSP (AgroSP + Seguro): delivery of 250 vehicles exclusively for rural patrol.

INNOVATION IN BIOLOGICAL CONTROL PROGRAM (Programa de Inovação em Controle Biológico - PROBIO): it allows the implementation of biofactories in the state and generates bio-inputs to replace agrochemicals.

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INFRASTRUCTURE, ENERGY AND SANITATION

SÃO PAULO’S ENERGY MATRIX: 60.2% renewable PIONEER IN THE LARGE-SCALE USE OF ETHANOL FROM SUGARCANE IN THE 2020/21 harvest, the state of São Paulo led the production of sugarcane and represented 54.1% of the national production. In the same period more than 14 billion liters of ethanol were also produced.

INTEGRATED ENERGY MANAGEMENT PROGRAM (Programa Integrado de Gestão Energética): actions for 30% energy savings in state public buildings by the end of 2022.

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PRO-SOLAR PROGRAM (Programa Pro-Solar): implantation of 50 solar plants, by private initiative, in distributed generation in the state by the end of 2023.

SUSTAINABLE CITIES PROJECT (Projeto Cidades Sustentáveis): partnership with the private sector for the production and distribution of biomethane from sugar cane vinasse in the countryside of the state, with an investment of BRL180 million and start-up in the 3rd quarter of 2022.

SÃO PAULO ENERGY PLAN 2050 (Plano Paulista de Energia 2050): elaboration of guidelines with the objective of promoting energy efficiency, increasing renewable sources, and expanding biofuels, which is expected to be concluded in 2022.

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STATE SOLID WASTE PLAN 2020/2035 (Plano de Resíduos Sólidos 2020/2035): the document revised in 2020 incorporated themes such as waste at sea, circular economy, mining, and contaminated areas.

It strengthened the themes of regionalization and formation of consortia of municipalities, the Online Solid Waste Management System (SIGOR), among others. The revision aligns the new guidelines to the UN’s Sustainable Development Goals.

REVERSE LOGISTICS (Logística Reversa): The legislation to improve waste management in the territory of São Paulo was implemented before the federal law. The 2011-2025 strategic plan contemplates actions such as pilot programs with industries and importers, gradual expansion to these sectors and to commerce, as well as partnerships with civil society and private initiative in the scope of the circular economy.

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NEW PINHEIROS RIVER PROGRAM (Programa Novo Rio Pinheiros): Latin America’s biggest socio-environmental initiative is underway, which benefits more than three million people in one of the world’s largest metropolises. It has connected more than 400,000 properties to the sewage network, especially in socially vulnerable regions.

Around 44,000 tons of garbage have been removed from the Pinheiros River. The Program has created 4,000 direct and indirect jobs in the construction work.

There are new parks, bike paths, and green areas. In addition, more than BRL 3.5 billion has been invested.

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TIETÊ PROJECT (Projeto Tietê): reduction of more than 80% in the pollution of the main river of the state. More than US$ 3 billion has been invested by SABESP. More than 12 million people have benefited with sewage collection and treatment, which is equivalent to the sum of the populations of London and Paris.

NEW SANITATION LEGAL FRAMEWORK: sanctioning of Law 17,383/2021 that provides for the creation of regional sanitation units with the goal of universalizing water and sewage services by 2033.

LEGAL WATER (Água Legal): program awarded by the UN for the provision of more than 185,000 free connections to the water network for people in vulnerable situations.

WATER LOSSES REDUCTION PROGRAM (Programa de Redução de Perdas de Água): SABESP has invested BRL 2 billion since 2018. The savings generated are enough to supply more than 640,000 people.

NEW MEASURES FOR WATER SECURITY: drilling of wells in cities with up to 50,000 inhabitants, construction of dams, desilting of rivers, and protection of springs.

Around BRL 900 million has been invested.

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PIRACICABA-PANORAMA HIGHWAY (Rodovia Piracicaba Pindorama – PIPA): the largest highway network ever granted as concession in Brazil received the Gold Seal of sustainability from the Brazilian GHG Protocol Program, Cycle 2021, for the work developed to make it a zero carbon highway according to international protocols.

SUSTAINABLE TRANSPORTATION PLANS: development of the Integrated Urban Transportation Plan (PITU 2040) and the Logistics and Transportation Development Plan (PDLT-2030). Progressive investments are being made in railroads - subways and trains -, rail, waterways, pipelines, and airports using low carbon technologies.

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GREEN INVESTMENTS, RESEARCH AND INNOVATION ZEE NETWORK (Rede Zoneamento Ecologico Economico – ZEE): a planning and territorial intelligence tool focused on climate resilience to guide private investors, public managers and decentralized environmental licensing.

INVESTSP has worked since 2010 to attract 281 new projects, amounting to BRL 82.4 billion in new investments and contributing to the generation of more than 180,000 direct and indirect jobs. The new green economy projects have BRL16 billion available for investment.

Of this total, the Green Economy portfolio amounts to BRL16 billion in new investments with the generation of 78,000 jobs.

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Activities

Projects

Investments (BRL MM)

Jobs

Forests, paper, and cellulose

5

8.138

14.219

Logistics

3

5.902

62.503

Solar energy

10

802

1.189

Waste and recycling

2

662

64

Water resources

2

662

64

Biogas and biofuels

2

502

170

Sustainable mobility

3

257

700

38

Ecotourism

1

2

8

Total

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16.925

78.917

INTERNATIONAL CENTER FOR TECHNOLOGY AND INNOVATION (Centro Internacional de Tecnologia e Inovação - CITI): The Silicon Valley of Latin America consolidates SP as a global reference in science, technology, and innovation.

IDEIAGOV: open innovation hub of the State Government that supports the development of solutions for challenges of public interest, connects actors of the ecosystem, and shares knowledge to generate positive results in society. Twenty impact businesses from Latin America and 15 startups from the UK have been selected to foster partnerships and promote acceleration within four axes: (1) changing the energy matrix, (2) reducing greenhouse gas emissions, (3) mobility and sustainable fuels, and (4) resilient cities.

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CLIMATE CHANGE RESEARCH: Partnership with the São Paulo Research Foundation (FAPESP) in the BIOTA-Síntese, BIOENBioenergia, and Climate Change.

The USP/FAPESP/Shell partnership - BRL 84 Million - Research Center for Innovation in GHG - BRL 63 million; IPA projects - Institute for Environmental Research in geological risk reduction, botany, and forest research - BRL 30 million.

SCIENCE CENTER FOR THE DEVELOPMENT OF CLIMATE NEUTRALITY IN CATTLE RAISING (Centro de Ciência para o Desenvolvimento da Neutralidade Climática da Pecuária de Corte): under development, its goal is to implement production systems for Carbon Neutral Beef by 2030.

UN’s 17 Sustainable Development Goals. For example, studies on sugarcane that increase productivity by 30% in relation to traditional cultivation.

INCENTIVES OF BRL 215 MILLION FOR lines of credit and insurance for rural producers with a focus on sustainability.

ELECTRIC VEHICLES: a 4% reduction in the ICMS tax to foster the sector’s growth.

SUSTAINABLE PUBLIC PROCUREMENT (Compras Públicas Sustentáveis): determines the socioenvironmental criteria for the acquisition of goods and services by the State.

SIX INSTITUTES AND ELEVEN REGIONAL CENTERS OF AGRICULTURAL RESEARCH: focus on sustainable solutions for the productive sector aligned with the 40

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SABESP: THE 3RD LARGEST SANITATION COMPANY IN THE WORLD

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Estimated value: US$

14 billion

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CONCESSIONS AND PARTNERSHIPS IN OTHER SECTORS ENVIRONMENT

RELEVANT ECONOMIC AREAS 30% of total Brazilian production 32% of total Brazilian services value added

Zoo and Botanical Garden Investment: US$

70 million

SPORTS CENTERS

20% of total Brazilian agribusiness GDP

42% of total refined oil in the country

40% of total foreign tourists in Brazil

Ibirapuera Complex Investment: 44

US$

200 million

40% of total jobs in Brazil related to creative economy 45

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THERE ARE MORE THAN 150 PROTECTED AREAS IN SÃO PAULO STATE, CORRESPONDING TO 4,7 MILLION HECTARES

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1 Morro do Diabo State Park – sight from the Morro do Diabo Trail 2 Alto Ribeira State Park (PETAR) – Temimina Cave 3 Serra do Mar State Park – Caminhos do Mar Route 4 Jureia-Itatins Ecological Station – Rio Verde Waterfall 5 Edmundo Navarro de Andrade State Forest (FEENA) 6 Fontes do Ipiranga State Park 7 Ilha Anchieta State Park

global.sp.gov.br

saopaulo.sp.gov.br/ meioambiente/

infraestruturameioambiente.sp.gov.br/ fundacaoflorestal/unidades-de-conservacao/

IN PARTNERSHIP WITH ITALY

São Paulo State Government Green Economy