Carbon Credits Law

By BKM-BERKEMEYER

Paraguay has taken a big step towards tackling climate change and boosting its economy with a new law on carbon credits. Signed in October 2023, Law 7190/2023 establishes a framework for capturing and selling carbon credits on the international market.

Imagine companies paying for your efforts to keep carbon dioxide out of the atmosphere. That's essentially what carbon credits are: certificates that represent a ton of captured or avoided carbon emissions. 

Paraguay boasts vast forests and fertile land, ideal for projects that absorb carbon dioxide, like planting trees or improving land management practices. By supporting these projects, the country can earn money, create jobs, and protect its environment.

The law sets up a system for:

-Identifying and approving green projects that can generate carbon credits.
-Tracking and verifying the amount of carbon each project actually captures.
-Trading carbon credits on the international market, ensuring transparency and fairness.

Implementing the law effectively will require careful planning, robust monitoring systems, and collaboration between various stakeholders. Paraguay also needs to ensure that any carbon credit projects benefit local communities and don't lead to land grabbing or other negative consequences.