Paraguay Establishes Legal Framework for Carbon Market Activities with New Decree

Photo Credits: Quadriz – https://www.quadriz.com/

[Charlottesville, Virginia, USA; 12 May 2025]

In March 2025, the Government of Paraguay enacted Decree No. 3369, a pivotal regulation that implements Law 7190/23 “On Carbon Credits.” This landmark decree establishes Paraguay’s first formal legal framework for carbon market activities and aligns national procedures with international climate commitments, particularly Article 6 of the Paris Agreement.

The move signals Paraguay’s readiness to scale its role in global carbon markets, while offering regulatory clarity for project developers, landowners, and investors. It’s a defining moment for the country’s sustainability agenda and a major step toward unlocking finance for climate-positive development.

Building a Transparent, Credible Carbon Market

At the heart of the decree is the creation of the Direction of Carbon Markets (DMC) under the Ministry of Environment and Sustainable Development (MADES). The DMC will oversee the implementation of the law and manage the National Carbon Credit Registry, a centralized system to ensure transparency, avoid double counting, and track carbon credit transactions, including Internationally Transferred Mitigation Outcomes (ITMOs).

To ensure environmental integrity, the decree defines additionality standards, establishes monitoring and verification procedures (MRV), and requires that projects comply with national environmental impact laws. It also outlines how Paraguay will apply corresponding adjustments in line with its Nationally Determined Contributions (NDCs) under the Paris Agreement.

These measures aim to create a high-integrity carbon market that is fully interoperable with international systems, including Verra, Gold Standard, and other leading methodologies.

“An Opportunity for the Entire Nation”

Paraguayan authorities have emphasized the broader national benefits of this new framework. According to Rolando de Barros, Minister of Environment and Sustainable Development:

“This is a historic achievement made possible through collaboration with the private sector. This law will benefit all of Paraguayan society—it will improve quality of life, fulfill environmental obligations, and open the door to new sources of financing that can be directed toward our country,” he stated.
Source: La Nación, February 2025

Similarly, Javier Giménez, Minister of Industry and Commerce, noted:

“The Carbon Credits Law represents an opportunity to build an industry that is environmentally responsible, offering the possibility to generate profits through forestry, energy, and agro-livestock projects that can lead us toward a more sustainable future.”
Source: mic.gov.py, 2025

The government expects the law to help attract up to $300 million USD in green investments in the coming years, particularly in rural areas where carbon projects can deliver long-term economic and environmental value.
Source: InfoNegocios

Pioneering Carbon Projects in Paraguay

At Climate Investment Partners, we welcome this important regulatory milestone and are proud to support high-impact projects that align with Paraguay’s new carbon vision.

Through partnerships with leading regional actors such as Quadriz and Investancia, we are helping develop large-scale afforestation and conservation initiatives that deliver verifiable climate results while benefiting local communities.

1. Corazón Verde del Chaco Project (with Quadriz)

• 560,000+ annual carbon credits
• 32,000+ hectares conserved
• 5.6M+ tonnes of CO₂e reduced or removed
• Protection for 5+ IUCN-listed threatened species
  Explore the project

2. Impact Reforestation in the Chaco (with Investancia)

• 50 million native trees to be planted
• 700,000+ annual carbon credits
• 120,000 hectares to be restored
• 250+ local community members employed
  Explore the project

These projects reflect Paraguay’s potential to lead in nature-based climate solutions. They also exemplify what Minister de Barros referred to as a “triple-impact” approach—delivering environmental, social, and economic benefits simultaneously.

A Step Toward a Greener, More Equitable Future

Paraguay’s decree is more than a regulatory milestone—it’s a signal to the global market that the country is ready to welcome responsible climate investment. With transparent rules, institutional oversight, and international alignment, the path is now clearer for carbon project developers and investors to engage with confidence.

✅ Paraguay is open for business, in a way that prioritizes climate integrity.
✅ The carbon market is evolving, and Paraguay is taking an active role in shaping it.
✅ Communities, ecosystems, and investors alike stand to benefit from this momentum.

If you’re interested in exploring investment opportunities or developing high-quality carbon projects in Paraguay, we’d love to hear from you.

Contact us at info@climateinvestmentpartners.com