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Bolivia Opened Its Carbon Market: From Prohibition to Green Financing Opportunity
By Juan Pablo Sánchez, Senior Associate, PPO Indacochea
The Constitutional Ruling 0040/2024 (June 2024) annulled Article 32.5 of Law 300, which prohibited the “commercialization” of environmental functions, on the grounds that it violated the right to a healthy environment and the primacy of treaties such as the Kyoto Protocol and the Paris Agreement.
End of the Restriction: Constitutional Ruling 0040/2024
The ruling redefines the article as a political guideline and allows the use of carbon markets to meet the country’s Nationally Determined Contributions (NDCs).
Supreme Decree 5264: Guidelines for the New Carbon Market
Supreme Decree 5264 (October 2024) establishes the architecture for climate finance:
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RENAPP, a central registry under the Ministry of Environment and Water (MMAyA).
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Ministry of Economy designated as the authority over carbon bonds and debt-for-nature swaps.
RENAPP and Resolutions RM 066-067/2025
The resolutions (March 2025) approved the Operational Regulations for RENAPP and the Regulations for Project Evaluation and Prioritization, activating the registration and certification of projects.
How the Regulation Defines a Carbon Credit
Article 7 of Supreme Decree 5264 recognizes the carbon bond as a negotiable instrument equivalent to 1 tCO₂e reduced, avoided, or captured, with traceability and no double counting through RENAPP.
Sectors with the Greatest Potential for Emission Reduction Units (ERUs)
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Afforestation and reforestation
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Renewable energy and energy efficiency
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Waste management
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Forest conservation
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Climate-smart agriculture
Challenges for 2025–2026
Strengthen institutional capacity, ensure environmental integrity, involve subnational governments and indigenous communities, and build confidence for international investors. President Luis Arce has already confirmed the issuance of environmental bonds as an additional financing mechanism.
Bolivia has taken the first step. The challenge now is to consolidate a climate model that attracts investment, accelerates sustainable development, and guarantees environmental justice.
PPO Indacochea
PPO Indacochea is Bolivia’s leading full-service law firm, formed through the strategic merger of PPO Abogados and Indacochea & Asociados—two of the most prominent and respected legal institutions in the country. With the largest team of lawyers and the broadest geographic coverage in the market, we are uniquely positioned to deliver legal solutions that are innovative, multidisciplinary, and business-oriented.
Our approach is simple and effective: we provide solutions, not just opinions. We work closely with our clients to understand their businesses and deliver strategic advice tailored to their most complex challenges. We channel transformative foreign investment into Bolivia, advise on high-stakes disputes before local and international tribunals, and offer end-to-end legal services that bridge the gap between law and business.
With a team of 85 lawyers and over 180 professionals led by 14 partners, we operate across six offices in five cities nationwide. Our professionals include top-tier talent—most trained or specialized abroad—with a strong commitment to diversity, inclusion, and social responsibility.
At PPO Indacochea we redefine legal services to anticipate and exceed the demands of a fast-evolving business environment. We are proud to be consistently recognized by the most prestigious international legal directories, including Chambers and Partners, Legal 500, IFLR1000, Leaders League, Latin Lawyer, LACCA, and others, as Bolivia’s leading law firm. PPO Indacochea: Where law meets strategy, and local depth meets global vision.