Quadriz participated in the stakeholder consultation process and draft of the newly approved law, as a developer of high-quality carbon offset projects in the threatened Paraguayan Chaco forest.
The Paraguayan Senate approved the Bill on 20 September, and on Friday 13, the President of Paraguay, Santiago Peña officiated the Carbon Law. Paraguay’s Minister of the Environment, Rolando de Barros, endorsed the new legislation as an opportunity for innovation and progress in the country’s sustainability policy and contribute enormously to sustainable growth and development.
“We can have a double impact, conserve and sustainably manage our resources and generate income for our production system,” he said.
He added: ”we are one of the few countries that have a tool like this that contributes directly to the conservation, protection and sustainable management of natural resources, and that Paraguay can truly develop in balance with nature.”
Benefits of Paraguay’s new Carbon Credits Bill
The global market for carbon credits represents an opportunity for Paraguay to protect its abundant natural resources and wealth of biodiversity, while also generating a sustainable and profitable source of income for local communities.
By bringing in this new law, Paraguay is recognising that high-quality carbon credits contribute to the conservation of the environment through the reduction, elimination or capture of carbon emissions and preventing habitat loss for endangered species, and providing income for indigenous communities.
The bill creates a legal framework that provides legal security over the ownership of carbon credits generated by projects developed in Paraguay, and grants transparency for transactions in the voluntary carbon market.
“A robust legal framework around carbon projects is one of the main axes for their development, which is why this Law lays the foundations for the field and thus opens the opportunity to diversify sources of income with the nature-based solutions approach”said Gabriela Viñales. REDD+ Lead at Quadriz
The Ministry of Environment and Sustainable Development (MADES) will oversee the law and is charged with keeping a record of all carbon credits generated in Paraguay and sold abroad, to avoid double accounting, which will help ensure the integrity of the carbon offsets.
The law allows for the generation of a clear legal framework and consequently the legal security that it provides, both for the owner or developer, as well as for the acquirer of carbon credits and other actors who voluntarily decide to venture into said activity, will allow Paraguay as an attractive destination for investments in the carbon market.
“With this tool, the ownership of the credits is clarified, and the corresponding adjustment is ensured to avoid double accounting, two essential points for the quality, security and transparency of the projects. We celebrate that the country demonstrates its commitment to sustainable development, with concrete actions, which aim to guarantee the conservation of natural resources and national and international investments linked to this business.”added Gabriela Viñales.
These changes will strengthen the veracity and validity of existing carbon credits projects by providing legal oversight, and increasing transparency – a measure which has been called for by the VCM community for some time.
In turn, this bolsters the reputation of carbon credits generated by Paraguayan projects, and will lead to increased buyer confidence.
Developing and promoting high-quality carbon projects: Quadriz supporting Paraguay’s carbon law
As the largest carbon project developer with operations in Paraguay, Quadriz has worked closely with the two Government institutions that play a fundamental role in the application of Article 6: MADES, – specifically with the National Directorate of Climate Change (DNCC), and The National Forestry Institute (INFONA).
Quadriz’ REDD+ Corazón Verde del Chaco Project has operated with consent and endorsement from the Paraguayan government since October 2021 and is recognised by DNCC/MADES and by INFONA as national leaders in forest conservation. Through the development and monitoring of the Corazón Verde del Chaco project, Quadriz’ has first-hand knowledge of carbon project development along with the carbon credits generated by nature-based solutions in the country, as well as strong evidence of carbon projects’ benefits and contributions.
Quadriz has actively supported the development of the new carbon credit law. The company actively participated in the stakeholder consultation process and construction of the new law, under the technical work specifications coordinated by the Chamber of Senators of the Nation. Already back in 2021, Quadriz signed framework agreements of cooperation and commitment with DNCC/MADES and INFONA. In turn, MADES, through the DNCC, has confirmed its commitment to register the Quadriz’ carbon projects, as soon as the institution officially launches its National Carbon Registry.
Gabriela Viñales, in her position as REDD+ Lead and Paraguay Country Manager at Quadriz is a prominent speaker locally, and was invited to speak at the Paris Agreement event organised by the DNCC for Climate Action Day in October last year. During her talk she presented the Quadriz’ projects and their successes in conserving forest and wildlife, and improving local communities lives.
Gabriela Viñales has for years been a particularly active proponent of the groundwork leading up to the new legislation and upcoming National Carbon Registry. Before joining Quadriz in 2021, she worked closely with the Paraguayan government at both UNEP and UNDP Paraguay.
At UNEP she was part of the team responsible for the REDD+ preparation phase for Paraguay, supporting the implementation the UN REDD + National Program, and lastly at UN Development Programme (UNDP) working on the Forests for Sustainable Growth programme (BCS).
Gabriela and the entire Quadriz team welcome the new carbon credit law, and acknowledges the improvement in regulation, transparency, and Article 6 security it will bring to local carbon credit projects and international carbon credit buyers.
For any enquiries related to the new carbon credits bill do not hesitate to reach out to Quadriz’ team of experts.