This decree marks a significant step in Paraguay’s efforts to establish a robust and transparent carbon market, aligning with international standards and supporting sustainable development.
Quadriz’s Role
Quadriz, as a prominent company in Paraguay’s carbon sector, has been a driving force behind the development of the country’s carbon credit legislation. Quadriz’s involvement in the stakeholder consultation process and its experience in REDD+ projects have been invaluable in the development of a legal framework that ensures the integrity and transparency of carbon credits in Paraguay.
Quadriz was represented by Country Director, Gabriela Viñales, who was present at the signing of the Carbon Decree by President Santiago Peña – a pivotal moment in Paraguay’s climate action journey.
The Carbon Decree: A Step Towards Article 6 Preparedness
The Carbon Decree is part of a three-stage lawmaking process in Paraguay, following the approval of the Carbon Credits Law (Law No. 7190/23) in October 2023. Work now continues to finalise the last remaining stage which involves the defining of Resolutions which will define how the decree will be applied at the ministry level. This decree outlines key measures to enhance Paraguay’s carbon market:
- Creation of the Carbon Markets Directorate (DMC): This entity will ensure traceability and maintain market integrity by preventing the double counting of carbon credits.
- National Carbon Credit Registry: The registry will provide a transparent system for tracking and verifying carbon credits.
- Legal Mechanism for ITMOs: The decree establishes procedures for issuing No-Objection Certificates and Letters of Authorization, facilitating international cooperation under Article 6 of the Paris Agreement.
Expected Impact and Future Developments
The Carbon Decree is expected to attract significant investments in carbon capture and forest conservation projects, potentially generating substantial annual revenues for Paraguay. With clear regulations in place, the country is poised to become a strategic player in global carbon markets, supporting local producers and indigenous communities while enhancing its position ahead of COP30 in Brazil.
As Paraguay moves forward with these legal developments, the collaboration between government agencies, private sector entities like Quadriz, and international partners will be crucial in ensuring the success of these initiatives.
