Climate Change Administration

To expand opportunities for climate change cooperation and exchanges between Taiwan and Paraguay, the Ministry of Environment held the “International Carbon Reduction Cooperation Dialogue” on May 7. The event was chaired by Minister of Environment Dr. Peng Chi-Ming and attended by Mr. Victor González, Director of Carbon Markets at Paraguay’s Ministry of Environment and Sustainable Development (MADES); representatives from Paraguay’s carbon market sector; Taiwan’s Green Growth Alliance; and the Taiwan Carbon Solution Exchange (TCX), among others. Participants engaged in in-depth discussions on the potential for Taiwan–Paraguay carbon credit program cooperation, follow-up implementation mechanisms, and pathways for advancing such cooperation. Through international cooperation and public-private collaboration, the two sides hope to create multiple-win outcomes for both governments and businesses.

The Ministry of Environment stated that the Republic of Paraguay is one of Taiwan’s important diplomatic allies. Paraguay’s abundant forest resources constitute a major source of carbon sinks and a core component of its emissions reduction strategy. Following the signing by Taiwan and Paraguay of the Memorandum of Understanding (MoU) for Collaboration under the Paris Agreement on October 1, 2025, Minister Dr. Peng announced in November the launch of 12 Action Plans for Environmental Governance between Taiwan and Paraguay. The dialogue meeting brought together businesses from both sides to exchange views on substantive mitigation mechanisms for future cooperation.

In his remarks, Minister Peng stated that, as the global net-zero transition continues to advance, Taiwan should pursue mitigation cooperation in accordance with the mechanisms under Article 6 of the Paris Agreement, both in terms of government mitigation strategies and corporate development needs. Such cooperation should generate Internationally Transferred Mitigation Outcomes (ITMOs) and apply corresponding adjustments, thereby ensuring the integrity and transparency of mitigation outcomes, preventing double counting, and meeting the requirements for high-quality carbon credits.

The Taiwanese government is currently discussing the conclusion of an Implementation Agreement (IA) with Paraguay. Under the proposed arrangement, the government would lead Taiwanese enterprises in establishing mitigation cooperation with Paraguay, ensuring that high-quality bilateral mitigation projects are aligned with international standards. Carbon credits generated through such cooperation could then be recognized for offsetting up to 5% of emissions subject to Taiwan’s carbon fee scheme (taxable emissions). Taiwan also hopes to participate in forestry carbon crediting projects in Paraguay through the cooperation of Taiwanese enterprises. Such efforts are expected to help Taiwan advance toward its emissions reduction targets while strengthening corporate competitiveness, and at the same time deliver positive benefits to local communities and ecosystems in Paraguay.

In his remarks, Director Victor González stated that Paraguay has advanced cooperative mechanisms under Article 6 of the Paris Agreement in recent years and has worked to establish an ITMO transfer system characterized by high integrity, transparency, and safeguards against double counting. He noted that Paraguay has already cooperated with multiple countries and accumulated practical experience, and that Paraguay and Taiwan are highly complementary in pursuing international mitigation cooperation. He hoped that the two sides could expand cooperation in areas including natural-based solutions (NbS), renewable energy, and green transportation, and that Taiwan–Paraguay cooperation could become an important practical demonstration of the implementation of Article 6 of the Paris Agreement.

Against the backdrop of intense international competition in mitigation cooperation, Minister Dr. Peng expressed his deep appreciation that Director González and representatives of Paraguayan businesses had traveled such a long distance to Taiwan to discuss carbon credit cooperation. In addition to future afforestation and reforestation mitigation projects with Paraguay, Taiwan has recently also been promoting plans for urban forests domestically. Through public-private collaboration, Taiwan aims to achieve multiple-win outcomes encompassing climate action, green investment, sustainable development, and stronger diplomatic ties.