Taiwan and Paraguay have formalised a new partnership to collaborate on carbon credit trading under Article 6 of the Paris Agreement, strengthening their joint commitment to meet UN green targets.
Panoramic view of Paraguay’s rainforest with waterfalls, mist, and morning light Ai-generated picture.
The agreement was sealed on 1 October in Taipei, where Taiwan’s Foreign Minister Peng Chi-ming and Paraguay’s Environment Minister Rolando de Barros Barreto signed a memorandum of understanding (MoU) establishing the Carbon Credit Cooperation Memorandum.
According to Taiwan’s Ministry of Foreign Affairs, the initiative aims to ‘work together to achieve net-zero emissions and promote a green economy.’ The two nations will coordinate efforts on carbon market regulation, governance frameworks, professional training, and capacity building. The ministry added that the collaboration will ‘accelerate the realisation of a win-win situation of economic prosperity and environmental sustainability.’
While details such as project locations, credit volumes, and timelines have not yet been disclosed, previous cooperation between the two countries offers clues. Taiwanese firms are expected to act as carbon credit buyers, while projects in Paraguay will likely serve as suppliers.
Read more: Uganda validates strategy to restore forests and boost carbon crediting
In July 2024, the Taiwan Carbon Exchange approved an afforestation project in Paraguay designed to generate credits for Taiwanese companies, helping them offset future carbon tax obligations. Taiwan is preparing to implement its first domestic carbon fee system in May 2026, targeting manufacturers and power producers with annual emissions above 25,000 tonnes of CO₂. These entities will be permitted to use voluntary carbon credits to cover up to 10% of their emissions instead of paying the full carbon fee.
For Paraguay, the agreement with Taiwan aligns with its broader strategy to expand participation in global carbon markets. The South American country recently signed a separate MoU with US-based carbon standard Verra to strengthen its carbon project development capabilities and boost engagement in international carbon trading.
Read more: Who’s who in the carbon market: Key institutions and frameworks and what they do
As more nations like Taiwan and Paraguay embrace carbon trading partnerships to accelerate their path to net zero, the demand for verified, high-quality credits continues to rise. The focus is shifting from simple offsets to measurable impact—projects that restore nature, empower communities, and deliver lasting environmental gains. At Green Earth, we develop exactly these kinds of premium, nature-based solutions: initiatives built on transparency, scientific rigour, and meaningful local benefits. For investors and companies alike, this is the moment to engage with projects that deliver both credibility and impact. Ready to be part of the next wave of transformative restoration?
