With its strong agricultural and industrial base—particularly in the sugar-energy sector—the State of São Paulo is strategically positioned to lead the production, innovation, and commercialization of second- and third-generation biofuels. This panel will discuss opportunities for technological development, incentive policies, and supply chain integration to expand the role of biofuels in both the state and national energy matrix. It will also address regulatory challenges, environmental sustainability, and socioeconomic impacts, seeking solutions that balance efficiency, innovation, and the creation of green jobs.