The IES program in Brazil focuses on the Sao Paulo Metropolitan Region (SPMR), a conglomerate of cities with a total population of almost 17 million people (approx. 10% of the Brazilian population), a GDP of US$100 billion (approx. 20% of the National GDP), and 6 million vehicles (approx. 25% of the national fleet). The workgroup for the IES project consists of representatives from Sao Paulo State Environmental Agency (CETESB), the Medical School of the University of Sao Paulo (FM-USP), the Institute of Astronomy, Geophysics and Atmospheric Sciences of the University of Sao Paulo (IAG-USP), the Institute of Applied Economics Research (IPEA), and two independent energy consultants. This report summarizes the methods and results for the first phase of the project, recently completed, which: Analyzed health impacts of the PROCONVE2 program in Sao Paulo in the 1990s; Developed a set of baseline and alternative energy/emission/air quality scenarios for Sao Paulo to analyze specific technologies and policy measures under consideration for implementation to mitigate local air pollution and also GHG emissions; Assessed and quantify the air pollution, environmental health and climate change benefits of each scenario; Estimated the economic benefits and costs of most relevant scenarios.