Asunción, Agencia IP.- The Ministry of Environment and Sustainable Development (MADES) and the Global Green Growth Institute (GGGI) have launched a project to accelerate the implementation of the carbon market to attract climate investment.
This project, titled «Operationalization of the National Carbon Market Framework of Paraguay,» is financed by the Carbon Transaction Facility. This initiative will assist the government in implementing a robust and transparent national carbon market aligned with Article 6 of the Paris Agreement, benefiting Paraguay’s economy while supporting sustainable development.
In 2023, the country enacted Law 7190, which establishes the framework for the trading of carbon credits. In February 2025, its regulations were approved for implementation, creating the Carbon Markets Directorate and launching the Carbon Credits Registry. However, to ensure effective implementation, this project will build and strengthen institutional capacities and governance and develop monitoring mechanisms.
The operation of Paraguay’s carbon market will encourage economic diversification by providing financial incentives for activities that reduce carbon emissions.
At the same time, it will promote the use of technologies and the adoption of low-carbon solutions and create financing opportunities for environmental activities or projects that benefit society.
«The launch of this project is an important milestone in Paraguay’s strategy to strengthen its carbon market and attract international climate finance,» explained Víctor González, director of the Carbon Markets Directorate at MADES.
He added that with this initiative, we seek to generate tools that provide economic incentives for activities that promote our country’s sustainable development.
Around 50 participants, including government authorities, representatives of international organizations, the private sector, and civil society members, attended the event, where the establishment of an interministerial table was announced. This table will function as the governance body for implementing the carbon market. The committee will consist of MADES, the Ministry of Economy and Finance (MEF), the Ministry of Foreign Affairs (MRE), and the Ministry of Industry and Commerce (MIC).
“With this new project, Paraguay positions itself as a strategic actor in the international carbon market in line with Article 6 of the Paris Agreement,” mentioned Aaron Drayer, Deputy Director of the Carbon Pricing Unit at GGGI.
He emphasized that the goal is to build a carbon market that complements Paraguay’s productive activities while creating new opportunities.
According to MADES, the project will focus on developing the regulatory framework, training key stakeholders, and creating monitoring mechanisms in the coming months to ensure proper functioning and compliance with Paraguay’s climate commitments.