The government of Brazil's Sao Paulo state approved a law on Monday to reduce greenhouse gas emissions by 20 percent by 2020.

State Governor Jose Serra said the goal was to reduce emissions from the 2005 level of 122 million tons per year to 98 million tons per year in 2020.

Serra criticized government sectors who argue that it is impossible to reduce carbon emissions without slowing down economic growth.

"What decreases the growth rate is the central bank's policy on interest rates and exchange rates," Serra said.

Serra said the emission cuts would mainly focus on the transportation sector. Fines will be imposed on those who do not meet the targets set by the government.