Brazil Environmental Protection Market Report

1. Know the market basics

A. WHAT'S THE MARKET & NUMBERS

Environmental experts estimate that Brazil's environmental
technologies market equaled $2.8 billion in 2002, including equipment,
engineering and consulting services and instrumentation
associated with pollution control and cleanup projects. The market
for air pollution control products is projected at $200 million,
for water and wastewater treatment at $1.6 billion and for solid
waste treatment at $1.0 billion. The market is growing at a rate of
5- 8% per year.
Some of the driving forces affecting this market are stricter
environmental legislation, pressure from the community and
clients, introduction of environmental management practices by a
growing number of industries, and increased number of industries
with ISO 14001 certificates. This certificate foresees continuing
improvement in production processes and adoption of pollution
prevention measures. In 2003, the number of ISO 14001 certified
companies in Brazil reached 900.
Basic sanitation services in Brazil are provided by 27 state
owned companies that serve 3,800 municipalities under concession
contracts, whereas municipal sanitation companies serve
1,700 municipalities. There are 5,507 municipalities in Brazil. The
concession law of 1995 allows private sector participation in this
market through concession contracts. The presence of international
companies in this market is small, however some international
leaders such as Lyonnais des Eaux, Vivendi, Aguas de
Portugal and the US companies Earth Tech, Montgomerry Watson
and CH2M Hill are active in Brazil.
Water distribution services cover 98% of Brazilian municipalities,
but only 64% of the residences in Brazil. The sewage situation
is much poorer: sewage collection systems are available in 52% of
municipalities but only 33% of residences. About 76% of the residences
in Brazil throw their untreated sewage in water bodies.
According to the Urban Development Secretariat, water distribution
and sewage collection for 100% of the Brazilian residences would
require investments of $35 billion within the next 10 years.
Although smaller than the sanitation market, the industrial
sector is an important market for effluent treatment systems.
Investments in effluent and industrial waste treatment in Latin
America for 2002-2005 are estimated at $2.2 billion, of which $1.1
billion will be invested in Brazil.

The Brazilian market for solid waste equipment and services
was established with participation by several Brazilian and foreign
companies. Engineering and consulting companies, distributors of
foreign equipment and locally established equipment manufacturers
supply this market.
According to the Brazilian Institute of Geography and Statistics,
daily collection of solid waste in Brazil reaches 224,413 metric tons,
of which 125,258 metric tons is residential waste. Statistics indicate
that 74% of the residential waste ends up in garbage dumps, 24% in
landfills, and only 2% is recycled.
The Brazil-German Chamber of Commerce and ABETRE
(Brazilian Association of Special Waste Treatment, Recovery and
Disposal) estimate that industries in Brazil generate 2.7 million
metric tons of industrial hazardous waste per year, of which only
600,000 metric tons are adequately treated and disposed.
Best prospects: Best prospects for US environmental products
and services include: water reuse and saving technologies,
sophisticated filtration methods (ultra filtration and reverse
osmosis) and compact sewage treatment stations. Suppliers of
water treatment stations incorporate specific imported equipment
such as automatic valves, oil separators, and ultra-violet systems.
Laboratory and analytical instruments are usually imported.
Best prospects for US companies in the solid waste sector
include: special small vehicles for city cleaning services; automatic
street wipers; high pressure water trucks; machines and
tractors for beach cleaning; heavy machines for mechanical
street wiping; equipment for rubber, paper and debris recycling;
odor control products; soil clean up technologies; and waste-toenergy
projects.

B. REFERENCE PRICES

Retail

Wholesale

Equipment

2002

2003

D. IMPORTANT PLAYERS

Beverage

Poultry & Meat

Snacks

Equipments

E. ASSOCIATIONS

Associa?o Brasileira das Concession?ias Privadas de Servi?s P?licos de ?ua e Esgoto - ABCON

ASSOCIA?O BRASILEIRA DAS EMPRESAS DE CONSERVA?O AMBIENTAL (ABECAM)

COAL

F. TRADE SHOWS

Fitma / Aquatec 2004 Stops: S? Paulo, Brazil Date: June/2004 Sector: Environmental

2. Test the market through Brazilian Newspapers

3. Reach relevant prospects from our CD-Rom Directory

4. Find reps / distributors through our mailing & telemarketing