Asunción, Agencia IP.- With the recent implementation agreement signed with Singapore, Paraguay has taken a key step toward positioning itself in the global carbon credit market, with an estimated annual export potential of between USD 250 and 500 million, according to the Deputy Minister of Trade and Services, Rodrigo Maluff.
The head of the Deputy Ministry of Trade and Services stated that the country could capture around 5 million tons of carbon per year through its forestry projects. This amount translates into an equivalent volume of carbon credits with commercial value in international markets.
He emphasized that the agreement with Singapore opens access to a high-integrity market and, therefore, one with higher prices. This means that the carbon credits generated in Paraguay could be traded for up to USD 250 million annually. With the opening of new markets, that amount could double, Maluff explained.
He also noted that carbon credits represent a new export opportunity for the country, combining environmental sustainability with economic development.
It is worth noting that this agreement falls under Article 6.2 of the Paris Agreement, which allows for the establishment of bilateral mechanisms for the validation and commercialization of carbon credits.
Under this system, buyer countries, such as Singapore, can conduct their audits to certify that projects meet environmental quality standards.
Strategic step toward more markets
Kiantar Betancourt, CEO of Chaco Vivo, highlighted the importance of the agreement, noting that entering a market like Singapore’s requires meeting multiple technical and legal requirements.
He explained that the agreement allows Paraguayan projects to be audited under that country’s standards. If they meet them, they can access better prices and greater international competitiveness.
Betancourt also acknowledged the role of the Ministry of Industry and Commerce in coordinating these processes.
In that regard, he stated that while over 190 countries are seeking to sell carbon credits, Paraguay has managed to position itself as a pioneer by finalizing this agreement with Singapore.
«Currently, negotiations are also underway with Finland, Taiwan, Japan, and South Korea, which will significantly expand export opportunities,» said the Chaco Vivo representative.