The Executive Branch of the Republic of Paraguay issued, on Tuesday, February 18th, the Decree N° 3369/2025, which regulates Law N° 7190/2023 on Carbon Credits, with the objective of establishing the foundations for the implementation of the law, aligning national regulations with international commitments on climate change, defining the competencies of the Ministry of Environment and Sustainable Development (MADES) as the enforcing authority, and setting the basic rules for the operation of the Carbon Credit Registry.

Below are some key points of this new regulation:

  1. The Carbon Market Directorate (DMC) is created under MADES, which will be responsible for the implementation, supervision, and regulation of the carbon market system in Paraguay.
  2. The Carbon Credit Registry is implemented as a publicly accessible and free platform, intended to provide measurable and verifiable information on carbon credits, Internationally Transferred Mitigation Outcomes (ITMOs), and other documentation issued by the DMC.
  3. Requirements are established for the certification and authorization of projects, which must demonstrate additionality, comply with measurement, verification, and permanence criteria, and, if required by the project activities, hold a valid Environmental License.
  4. The DMC is authorized to issue Non-Objection Certificates and Letters of Authorization for ITMOs, to ensure that there is no double accounting of emission reductions and to allow projects to access the mechanisms under Article 6 of the Paris Agreement.
  5. The obligation to withhold carbon credits is limited to ITMO transfers, clarifying that the withholding percentage will be determined by administrative resolution of MADES and confirming that this obligation does not apply to private transfers in the voluntary carbon market.
  6. Fees are set for procedures before the Carbon Credit Registry, including payments for registrations, issuance notifications, transfers, and modifications, while exempting from payment projects or credits held by Indigenous communities.
  7. A supervisory and sanctioning regime is established, authorizing MADES to monitor, audit, and sanction any violation of the carbon credit regulations.

With this regulation, the Government seeks to position Paraguay as a leader in the carbon credit market, providing the sector with predictability and strengthening its legal framework, promoting mechanisms that contribute to emission reductions and the fight against climate change, while safeguarding national interests and ensuring compliance with the country’s environmental commitments under international agreements.