Paraguay and Taiwan have set a floor of 5 million carbon credits as part of negotiations on an international transfer agreement they expect to conclude this year, amid Paraguay’s rapid expansion of a carbon market focused on meeting Article 6 demand, a government official said.
Victor Gonzalez, director of carbon markets at Paraguay’s environment ministry MADES, wrote this week in local outlet Infonegocios that the agreement would initially target demand from Asian companies.
The two countries signed an Article 6 memorandum of understanding in Oct. 2025 and have since advanced an implementation roadmap including reforestation and electric mobility pilots.
Initial forestry projects include 100-hectare pilots, with a first scale-up phase of 500-1,000 ha, with estimated prices floating between $15-40 per credit.
While Taiwan cannot formally participate as a party to the Paris Agreement, it is voluntarily aligning its domestic policies with the agreement’s requirements, mechanisms, and goals, including by pursuing bilateral carbon market cooperation under Article 6.
Paraguay is aggressively seeking to expand its carbon markets through Article 6, including sovereign transactions that could support other countries’ Nationally Determined Contribution accounting as well as other mitigation measures, such as the CORSIA international aviation offsetting scheme.
Read more: FEATURE – Paraguay goes all-in on Article 6
The country has also signed an implementation agreement with Singapore, which is awaiting ratification from the Senate.
Gonzalez said Paraguay now has 21 mitigation projects registered with MADES, while known carbon credit transactions have surpassed $10 mln, mainly involving forestry and conservation projects.
The ministry aims to expand the pipeline into agriculture, livestock, soil carbon, waste, energy, and technological solutions – some of which are of particular interest to Taiwan.
MADES is also shifting its approach from developing credits first and seeking buyers afterwards to identifying demand before structuring projects.
“If we know there is potential demand from Singapore, Taiwan, or CORSIA, we can start structuring projects specifically for those markets,” Gonzalez said.
The approach is intended to provide greater certainty for project developers and investors while increasing the volume and value of credits generated in Paraguay.
By Juan Guerrero – [email protected]