Ñeembucú

Itapúa

Caazapá

Alto Paraguay

Concepción

Guairá

Amambay

Misiones

Alto Paraná

Boquerón

Caaguazú

Canindeyú

Paraguarí

San Pedro

Central

Asunción

Presidente Hayes

Cordillera

Paraguay

Decrease in 20% the share of fossil fuels in annual total energy use by 2030 against a 2013 baseline

100% of solid biomass products to be used with certification at the sixth year of regulation

Increase in 60% the share of renewables in annual total energy use by 2030 against a 2013 baseline

Paraguay Nationally Determined Contribution. NDC3.0; Adaptation Communication. AC2

The fertilizer industry is a significant source of greenhouse gas emissions, driven largely by fossil fuel-based ammonia production. With long-lived infrastructure and high investment costs, the sector faces structural barriers to adopting cleaner technologies. Without dedicated support, it will remain locked into carbon-intensive practices undermining global climate goals.

The project aims to reduce emissions in fertilizer production by constructing and operating a green fertilizer facility powered by renewable electricity. The facility will produce green hydrogen via electrolysis and use it to manufacture low-emission calcium ammonium nitrate (CAN) fertilizer, enabling a shift away from fossil fuel-based inputs. It will also showcase a viable pathway for decarbonising fertiliser production at scale, potentially helping to unlock future investments across Latin America.

GCF will provide USD 50 million in concessional finance to reduce the project’s cost of capital and support market competitiveness. The project includes a technical assistance component, led by IFC, to promote replication by developing open-access guidelines for financing green fertilizer projects, focusing on gender inclusion. Its large-scale demonstration effect positions it as a catalytic step toward decarbonising fertilizer production across the region.

Decree No. 3369 establishes Paraguay’s first formal legal framework for carbon market activities by implementing and regulating <a href="https://app.climatepolicyradar.org/document/law-7190-2023-of-carbon-credits-ley-no-7190-de-los-creditos-de-carbono_7748" target="_self"><ins>Law 7190/23</ins></a>,, as mandated in Chapter V, Article 25 of the law.
The Decree aligns Paraguay’s carbon market regulations with the Paris Agreement, particularly Article 6, which encourages international co-operation to support the achievement of nationally determined contributions (NDCs) through mitigation and adaptation measures. It also aligns with constitutional principles set out in Article 7, which recognises the right of every person “to live in a healthy and ecologically balanced environment”, and Article 8, which establishes that “activities likely to cause environmental alteration shall be regulated by law”.
The Decree creates the Carbon Markets Directorate (DMC), responsible for implementing, supervising, and regulating the carbon market system in Paraguay. It also outlines the foundational rules for the Carbon Credit Registry (created by Law 7190/23), ensuring transparency and traceability through measurable and verifiable data related to carbon credits, Internationally Transferred Mitigation Outcomes (ITMOs), and NDC compliance projections.

It is Paraguay’s strategic roadmap for the National System of Protected Wild Areas (SINASIP) for the years 2025-2030. It aims to strengthen conservation, improve management and governance of protected areas, and ensure their sustainability.
The document acknowledges the fundamental role of natural ecosystems in mitigation and adaptation to climate change.
The document highlights as essential to develop and implement these plans with an emphasis on the conservation and adaptive measures to climate change, enabling strategic management that guarantees the protection of biodiversity and the resilience of ecosystems.

Geography

Paraguay

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Targets 4

Decrease in 20% the share of fossil fuels in annual total energy use by 2030 against a 2013 baseline

100% of solid biomass products to be used with certification at the sixth year of regulation

Energy intensity target

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