Paracel, a large-scale forestry and conservation project in Paraguay backed by commodity trader Trafigura, has verified its initial batch of carbon removal credits, totaling over 190,000 tons.
The project is among the first globally to verify credits under Verra’s updated methodology for Afforestation, Reforestation, and Revegetation (VM0047). With 87,000 hectares planted to date, Paracel is projected to generate over 23 million tons of carbon removals over its operational lifespan, while allocating 40% of its total project zone to biodiversity conservation and restoration.
Initial development was financed through international development banks alongside carbon financiers. The project integrates with Paraguay’s first pulp mill, supporting the country’s broader industrial forestry strategy while allocating 10% of carbon revenues to local community initiatives.
The milestone positions the project to tap emerging international compliance channels as Paraguay advances its national Article 6 framework, following bilateral agreements signed with Singapore and the United Arab Emirates.
Bridging Capital Gaps for Large-Scale Nature-Based Removals
The verification validates the commercial role of carbon finance in de-risking long-horizon forestry investments before timber operations reach maturity.
“Forestry is a patient business. The trees we plant today will become an industry over time, and carbon finance bridges that period by providing the additional revenue that makes responsible investment at-scale possible,” said President Santiago Peña of Paraguay.
“Paraguay is not simply generating credits; we are building a modern forestry economy.”
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Trafigura has supported the carbon asset development of the project over the past four years as part of its strategy to bring large-volume, investment-grade removals to global carbon markets.
“Paracel is an embodiment of what carbon markets seek to achieve: how to catalyse investment for business practices that were not previously economically viable,” added Hannah Hauman, Head of Carbon at Trafigura.
“Achieving Verra certification validates that work and positions Paracel to deliver tens of millions of tons of high-quality removals over its lifetime.”
Read more: Verra’s Latest Carbon Standard Gains Eligibility Under ICVCM’s Core Principles
