Decree No. 3369 establishes Paraguay’s first formal legal framework for carbon market activities by implementing and regulating Law 7190/23,, 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.
