Energy generation is needed in Sao Paulo and MSW represents a promising alternative, although it is more expensive than hydroelectric power. About 14 900 t/day of MSW is generated, of which 8433 t/day is domestic and commercial MSW. From this amount, 1800 t will be destined to generate 30 MW of power. The eco-balance of CO2 has been considered for incineration and recycling. The recycling program of plastics, metals, paper and glass would represent a significant reduction in energy and CO2 emission. The total CO2 released is 3.34 x 10(5) t/yr without recycling. and is 1.25 x 10(5) t/yr with a recycling program. Most of the CO2 comes from plastics and paper production. Economic aspects could probably favor Incineration with energy production as the best option.