With the recent enactment of Decree N° 3369/2025, Paraguay has solidified its position as a key player in the global carbon market. The Decree regulates the country’s Carbon Credit Law N° 7190/2023, promoting transparency, integrity, and compliance while reinforcing Paraguay’s reputation as a vital carbon sink and a global leader in climate finance.
By regulating carbon markets, the Paraguayan government is unlocking new investment opportunities in sustainable land use, forestry, agriculture, and energy sectors, while aligning with global climate commitments. This framework enhances environmental conservation efforts, supports emissions reduction initiatives, and positions Paraguay as a destination for climate-driven capital.
A Clear Path for Carbon Market Development
The newly implemented regulation establishes a clear and structured legal framework for carbon credit projects in Paraguay. It defines the role of the Ministry of Environment and Sustainable Development (MADES) as the primary authority overseeing compliance, supervision, and enforcement. Additionally, it introduces key mechanisms to facilitate efficient carbon credit trading and governance, including:
✅ Creation of the Carbon Market Directorate (DMC) – This specialized entity under MADES will oversee Paraguay’s carbon market system, ensuring effective implementation and regulation.
✅ Public Carbon Credit Registry – A free, publicly accessible platform will provide transparent and verifiable information on carbon credits, Internationally Transferred Mitigation Outcomes (ITMOs), and other key project documentation.
✅ Project Certification & Authorization – Carbon credit projects must meet strict environmental and technical criteria, including additionality, measurement, verification, and permanence requirements. Projects with significant environmental impact must hold a valid Environmental License.
✅ Alignment with International Carbon Markets – The DMC is authorized to issue Non-Objection Certificates and Letters of Authorization for ITMOs, preventing double counting of emissions reductions and ensuring compliance with Article 6 of the Paris Agreement.
✅ Fair Market Participation – Carbon credit withholding obligations will only apply to ITMO
transfers, with voluntary carbon market transactions exempt from such requirements. The withholding percentage will be determined by MADES through administrative resolution.
✅ Fee Structure & Exemptions – Fees will apply for registrations, issuance notifications, transfers, and modifications within the Carbon Credit Registry. However, Indigenous communities will be exempt from these costs, ensuring equitable participation.
✅ Robust Oversight & Enforcement – MADES will have full authority to monitor, audit, and sanction violations of carbon credit regulations, safeguarding the market’s integrity and credibility.
A Defining Moment for Paraguay’s Climate & Investment Leadership
At SilviPar and Astarte Capital Partners, we are proud to support Paraguay’s climate ambitions and sustainable investment landscape. As the largest institutional capital pool ever assembled for Paraguay (and among the largest globally in the voluntary carbon market), our investment is also contributing to the establishment of Paraguay’s largest natural grassland reserve, reinforcing our dedication to biodiversity and ecosystem conservation.
For Paraguay, this new regulatory framework paves the way for increased climate finance, environmental sustainability, and long-term economic growth. With clear guidelines, strong governance, and enhanced market transparency, Paraguay is poised to thrive as a global hub for carbon markets and sustainability-driven investments.
💡 This law is about progress, investment, and impact. We look forward to seeing Paraguay unlock its full potential in the global carbon economy.
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