The concept of sustainability, in recent years, has evolved from a simple buzzword to an urgent need, a global call for concrete actions. Amid this scenario, Brazil, with its vast territorial extension and biological diversity, is a global leader in predominantly renewable energy generation and the 4th country with the most renewable energy matrix in the world, according to Our world in data. On the other hand, Brazil is the 5th largest emitter of greenhouse gases. Our global protagonism depends on how we lead the transition to an increasingly sustainable future.

One of the allies on this journey is biomethane, obtained from the purification of biogas, a renewable energy source with the potential to contribute to the country's decarbonization route and, in particular, the state of São Paulo.

When we analyze the biggest emitters of Greenhouse Gases, one of the biggest opportunities is the decarbonization of transport, especially the heavy fleet and public transport, which are responsible for around 12% of Greenhouse Gas emissions and consume around 35 % of diesel in Brazil. In São Paulo, for example, the transport sector is responsible for 29% of the state's Greenhouse Gas emissions, so replacing the diesel consumed in the state with conventional or renewable natural gas can significantly reduce its carbon emissions, improve air quality in cities and set a precedent for other states.

In addition to the environmental benefits, biomethane can present economic advantages, such as creating jobs and increasing tax collection. Such transformation, however, is not without challenges. Biomethane production requires robust infrastructure and technologies, as well as significant investments.

In this sense, the role of the State is to establish an environment with legal and regulatory security, without creating subsidies, costs or charges to be shared among consumers. On the other hand, the private sector must lead in innovation, invest in technology and production capacity and develop a competitive product.

The convergence of interests of the State, private sector and community is crucial. São Paulo, with its influence, can be the catalyst for this transformation, showing the way to an even cleaner and more self-sufficient Brazil.

However, in order to create a sustainable development plan for biomethane, some points need to be observed carefully:

• International comparisons: when evaluating policies such as the United States Inflation Reduction Act and the European Union's Green Deal for eventual application in Brazil, it is essential to consider socioeconomic, geographic and cultural differences. It should not be assumed that success in one region of the world will automatically translate into similar results in Brazil, given the uniqueness of our challenges and opportunities.

• Economic viability: biomethane plants must be economically viable, without depending on the state or federal government for subsidies. The attractiveness of the biomethane molecule will be dictated by the market, which will indicate whether or not it wants to pay for the renewable attribute.

• Molecule indexer: the market needs to develop a derivative exchange structure for biomethane, currently priced in reais plus Broad National Consumer Price Index, to be able to be competitive in the long term with conventional natural gas, most commonly priced in US dollars plus Brent.

• Security of supply: industrial customers, such as glassmakers, ceramicists, among others, cannot run the risk of interruption in gas supply, and it is essential to understand and mitigate the impacts of seasonality in biomethane production.

• Challenge of scale: biomethane is more like “country distributed generation ”than“ country pre-salt”, due to the supply being characterized by low volumes distributed across several different production points and not necessarily in the same location where the demand is.

Finally, the state of São Paulo, with its capacity and influence, has the opportunity to lead this energy transition agenda in Brazil. For this vision to become a reality, it is critical that challenges are recognized and addressed proactively. This transformation could very well begin with the hum of engines powered by natural gas, whether conventional or biomethane, on the roads of São Paulo.