Brazil Country Market
Insights and Opportunities
Overview: Environmental experts estimate that Brazil’s environmental technologies market (including equipment, engineering / consulting services and instrumentation associated with pollution control and cleanup projects) is valued at roughly US$ 4.9 billion, of which US$ 2.3 billion is related to the water and wastewater sub-sector (water and sewage US$ 2 billion, industrial investments about US$ 300 million); solid waste management at US$ 2.5 billion (US$ 500 million private investments) and air pollution control at US$ 400 million.
Water and Waste Water: Recent events had a positive impact in the sanitation sector and increased investments in the business. Law 11455 of January 2007 established the regulations, defined the national policy for the sector, enabled states and municipalities to make their sanitation plans, to create consortiums and establish private-public partnerships. A Federal Government social program, known as the Economic Acceleration Program (PAC), attracted R$40 billion (US$18.4 billion) to the sanitation sector from 2007 to 2010, using funds from the federal government, state, municipal and private investors. The PAC’s investment priorities are as follows in US$ billions: Integrated sanitation services in slums – 1.84 billion Water, Sewage, Waste disposal and rainwater management in mid and large cities – 1.84 billion Water, Sewage, Waste disposal and rainwater management in cities of up to 50,000 inhabitants – 1.84 billion. Loans to States, Municipalities and water and wastewater utilities – 5.5 billion Loans to private service providers and market operations – 3.7 billion.
Air Pollution Control: The need to comply with the existing legislation on pollution emissions, the reutilization of raw materials and adoption of environmentally friendly policies, determine investments in air pollution control equipment and services. Industry experts estimate that this market is to increase by about 20% per year. In addition to the industrial market, the increased number of CDM projects in sanitary landfills in Brazil, is also creating a demand for gas emission monitoring technologies.
Solid Waste: Although urban cleaning and public waste management services are under the responsibility of municipalities, some major private sector companies participate through contracts or long-term concessions. In addition, there are several Brazilian manufacturers of solid waste treatment equipment. There are also a number of companies, several of them international firms, in the business of hazardous waste treatment.
Figures from the Brazilian Association of Urban Cleaning and Hazardous Waste Collection and Treatment Companies (ABRELPE), indicate that the sector generates annual revenues of R$ 5 billion (US$ 2.17 billion), has a fleet of 9,600 compactor trucks and invest R$ 300 million (US$ 130 million) in compactor trucks / year. Investments in sanitary and hazardous waste landfills are expanding significantly, as 90% of Brazil’s 5,562 municipalities lack sanitary landfills for waste disposal.
Although smaller than the public sector, the private sector is an important market for pollution control technologies. Some of the driving forces affecting this market are stricter environmental legislation, pressure from communities and clients, the introduction of environmental management practices by a growing number of industries and increased number of industries with ISO 14001 certificates. The ISO 14001 certificate requires continuing improvement in production processes and adoption of pollution prevention measures. Industries in Brazil demand technologies for water reuse, solid waste treatment, recycling, CDM for greenhouse gases, etc.
Opportunities: Existing opportunities for U.S. companies include: soil/water contamination treatment equipment and services; healthcare waste treatment technologies; laboratory instruments; odor control products and recycling technologies.