According to NY1, local company Atlas Materials will be providing the confetti for the parade:
Atlas Materials in Red Hook, Brooklyn is donating recycled confetti strips for the celebration. They say parades these days are much more environmentally friendly than ticker-tapes of the past.
"What we're doing here today is taking 1,200 pounds of shredded, recycled paper to be delivered to the buildings of Lower Manhattan to start the process of what kind of paper should be thrown from the windows tomorrow. It will all be cleaned up by the sanitation department and recycled yet again. So this is going to be a green parade," said John Cioffi of Atlas Materials.
A video of the confetti being made at Atlas, as well other info about the parade, is over at the NY1 website here (still no embedding NY1?)