Paraguay, under President Santiago Peña's recent approval of the Carbon Credits Act on 12 October 2023, is setting a precedent in Latin America with the establishment of a comprehensive Registry. This Registry, a key component of the Act, will meticulously document all active carbon credit initiatives across the country.
Landscape view of Iguazu Falls, on the border of Argentina, Brazil, and Paraguay.
Boasting rich biodiversity and natural resources, Paraguay aims to protect its environmental treasures while enticing fresh investments focused on carbon and biodiversity. This strategic move facilitates the commercialisation of carbon credits in the voluntary market, positioning Paraguay to harness its substantial carbon capture potential.
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Charles Whitaker, the Managing Partner of Brown&Co, notes, ‘This will allow the commercialisation of carbon credits in the voluntary market and is a big step forward in enabling Paraguay to utilise its significant carbon capture potential.’
International corporations can now offset their carbon footprint by acquiring land in Paraguay, known for its vast intact ecosystems. An ongoing initiative markets an institutional-scale opportunity involving grass-fed livestock in the Gran Chaco region.
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Adam Oliver, a partner at Agricultural Business Consultancy (International), highlights, ‘The new law creates a legal framework that provides security over ownership of carbon credits and aligns Paraguay with international markets.’
Overseen and verified through the Registry by Paraguay’s Ministry of Environment and Sustainable Development (MADES), projects will adhere to measures safeguarding compliance with Paraguay’s Nationally Determined Contributions (NDCs). These include withholding 3–10% of carbon credits per project and promoting knowledge transfer to Paraguayan professionals.
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