With strong legislative enforcement of the Carbon Credit Law, the Republic of Paraguay is advancing environmental protection and conservation in the Chaco region, supporting projects that safeguard ecosystems while attracting over USD 10 million in responsible investment. At the same time, the country is expanding certification processes across more than 400,000 hectares, strengthening long-term stewardship of forests, biodiversity, and natural carbon sinks.

Rising interest in global carbon markets has prompted Paraguay to leverage domestic capacities and rich biodiversity to create new revenue streams for the nation. Through the introduction of the Carbon Credit Law, Paraguay affirms that high-quality carbon credits are essential in reducing, eliminating, and capturing carbon emissions while preserving ecological integrity and providing vital income opportunities for indigenous communities.

The Ministry of Environment and Sustainable Development leads the country’s carbon market efforts, establishing a clear legal framework that prioritizes transparency, environmental accountability, and rigorous oversight of carbon credit projects. By aligning with international voluntary carbon market standards, Paraguay is reinforcing its commitment to credible, conservation-focused climate solutions and building trust among project partners and buyers alike.

As a member of the CVF-V20, Paraguay’s strategy aligns with the organization’s carbon finance agenda, recognizing its immense potential to strengthen national economic resilience, promote social equity, advance climate action, and protect biodiversity—while unlocking critical funding for countries facing the greatest climate vulnerabilities and the deepest gaps in climate finance.

The Carbon Credit Law is expected to draw significant carbon market investments to Paraguay, potentially generating over USD 100 million in annual revenue. The country aims to become a global leader in carbon credit regulation while expanding access to high-quality projects for the international carbon market.