In a move signaling deepening climate diplomacy, Taiwan and Paraguay have signed a memorandum of understanding (MOU) on carbon credit cooperation, Taiwan Today has reported.
The signing, which took place on October 1 in Taiwan’s capital Taipei, reflects both governments’ ambition to leverage the carbon market in pursuit of net‑zero emissions.
The agreement, inked by Taiwan Environment Minister Peng Chi‑ming and Paraguayan counterpart Rolando de Barros Barreto, was witnessed by Taiwan’s Vice Foreign Minister Ger Bau‑shuan and senior officials from both sides.
The partnership aims to expand collaboration in areas such as carbon credit regulation, governance frameworks, capacity building, and talent cultivation.
Relevant: Taiwan Partners With European Exchange To Launch Carbon Market
Under the agreement, Paraguayan forests and land resources—particularly in regions eligible for afforestation and reforestation projects—are considered prime sources of carbon credits.
Paraguay targets a greenhouse gas (GHG) reduction of 10% to 20% by 2030 as part of its climate strategy, officials said.
Taiwan’s Ministry of Foreign Affairs framed the MOU as an affirmation of the two nations’ support for the Paris Agreement and the U.N. Framework Convention on Climate Change.
It is also a result of Taiwan’s integrated diplomacy strategy, which seeks to align climate partnerships with foreign policy goals.
During the ceremony, Peng described Taiwan and Paraguay as having “complementary advantages” in emission reduction, according to Taiwan Today.
Barreto, meanwhile, called Taiwan “a reliable technical partner,” noting he looked forward to expanding cooperation.
The MOU follows a March delegation visit by Taiwan to Paraguay, and marks Taiwan’s first agreement of this kind with an ally.
The deal is positioning Taiwan to deepen its footprint in international carbon markets, while reinforcing its diplomatic ties with key partners.
So far, Singapore has emerged as a leader in bilateral carbon credit cooperation, having signed 13 MOUs and concluded nine legally binding implementation agreements to date, including one with Paraguay.
