Paraguay is positioning itself as a regional hub for high integrity carbon credits by focusing on compliance markets rather than the volatile voluntary sector. By aligning its legal framework with Article 6 of the Paris Agreement, the country aims to attract higher prices per tonne of avoided emissions through bilateral agreements with nations like Singapore and the UAE. Leveraging a 100 percent renewable electricity grid, Paraguay plans to expand its credit generation beyond forestry into industrial electrification and green hydrogen. While the government emphasizes the business opportunity, local NGOs have raised concerns regarding land distribution and the inclusion of indigenous communities in the financial benefits.
