Paracel, a large-scale carbon removals project in Paraguay backed by Trafigura, has verified its first carbon removal credits, totalling over 190,000 tonnes. The Paracel project combines ecosystem conservation with FSC-certified sustainable forestry activities, and is designed to remove carbon at-scale and conserve local biodiversity in-line with IFC Performance Standards. The credits are verified under Verra’s methodology for Afforestation, Reforestation and Revegetation (“ARR”) projects (“VM0047”), making Paracel one of the first projects globally to verify credits under the methodology.

With 87,000 hectares planted to date, Paracel is one of the largest VM0047 projects in the world and is forecast to produce over 23 million tonnes of carbon removals over its lifetime, with a further 40% of the project zone supporting ecosystem conservation and restoration.

From inception, the Paracel project was designed to deliver socio-economic development alongside carbon removals. With initial funding secured by international development banks and carbon financiers, the project has created approximately 3,000 jobs and trained 5,000 people in best-in-class forestry practices. Paracel is also reinvesting 10% of carbon revenues into local environmental and social initiatives, while supporting the development of Paraguay’s forestry industry via greater vertical integration with the country’s first pulp mill.

Paraguay is rapidly operationalising Article 6 of the Paris Agreement and strengthening its position within the emerging international compliance carbon market, having already signed an Implementation Agreement with Singapore and Memorandum of Understanding (MoU) with the United Arab Emirates. These agreements provide a framework for high-quality Paraguayan carbon credits to access international carbon markets, whilst facilitating carbon revenues to flow back to the country.

President Santiago Peña of Paraguay said: “This is a truly exciting milestone — not only for the Paracel project, but for Paraguay and our country’s growing role as a global leader in carbon markets. This is a large-scale, investment-grade removals project, which has now achieved registration under international carbon standards and is well-positioned for Article 6 export approvals. Beyond the certificate, this matters because 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. Paraguay is not simply generating credits; we are building a modern forestry economy. For us, production and conservation are not rivals: they work together, with benefits that reach our communities.”

Per Olofsson, Chairman at Paracel, said: “We are proud to mark the verification of our first carbon removal credits. We have spent years building a project that combines genuine scale with rigorous environmental and social standards – protecting and restoring natural ecosystems while delivering high-integrity removals. Achieving Verra certification validates that work and positions Paracel to become one of the most significant sources of investment-grade carbon removals in the world.”

Hannah Hauman, Head of Carbon at Trafigura, said: “Paracel is an embodiment of what carbon markets seek to achieve: how to catalyse investment for business practices that were not previously economically viable. This is a project of genuine scale and integrity, verified under one of the most rigorous methodologies available and positioned to deliver tens of millions of tonnes of high-quality removals over its lifetime. Trafigura has been proud to support Paracel’s development on carbon over the past four years, and is excited to bring these credits to international compliance markets.”