The carbon credit market continues to spark interest in Paraguay given the opportunities it could represent for sectors linked to forest conservation, sustainable production, and clean energy generation. However, the gap between the touted potential and the revenue actually generated remains an obstacle for the country.
Alfredo Molinas, former Minister of the Environment and of Agriculture and Livestock, believes Paraguay has favorable conditions to take part in this emerging business, thanks to its natural resources, renewable energy matrix, and the regulatory framework established by Law No. 7190/23 on Carbon Credits. Despite this, the specialist warned that a significant difference persists between the revenue projections frequently mentioned and the funds actually obtained in real operations.
In an analysis released by the Unión de Gremios de la Producción (UGP), Molinas argued for the need to distinguish between projects in development, potential credits, certified credits, and sales actually completed. For him, the consolidation of the market will require more detailed information on ongoing projects, traded volumes, buyers, and income obtained. Having verifiable data, according to the former minister, will make it possible to measure the economic contribution of the activity more accurately and strengthen the trust of investors, producers, and the communities involved.
The international landscape also poses challenges. Data cited by Molinas indicate that the voluntary carbon market reached a global value of USD 535 million in 2024, but registered a decline compared to the previous year. A supply of credits exceeding demand in some segments makes the environment more competitive for countries and projects trying to position themselves in this area. Even so, the former minister considers that the opportunity for Paraguay remains in place.