Promoting low-carbon development in Paraguay via low-emission strategies and direct access entities accreditation

The proposal outlines a 24-month program to address five key barriers to climate finance and mitigation in Paraguay. It focuses on developing a National SLCP Strategy, strengthening the accreditation process for Sudameris Bank and the Agencia Financiera de Desarrollo (AFD), creating a Private Sector Engagement Strategy for the AFOLU sector, updating the national MRV system, and developing a high-quality GCF project concept note.

• Paraguay's updated Nationally Determined Contribution (NDC) targets a 20% emission reduction by 2030 relative to Business as Usual (BAU), consisting of a 10% unconditional target and a 10% conditional target based on international financial support.
• The country faces a critical lack of data and monitoring infrastructure for short-lived climate pollutants (SLCPs), making it the only one of 13 assessed Latin American and Caribbean countries not reporting SLCP data.
• Direct access to GCF funding is hindered by capacity gaps in candidate Direct Access Entities (DAEs), specifically Sudameris Bank and the Agencia Financiera de Desarrollo (AFD), regarding fiduciary standards, environmental and social safeguards (ESS), and gender equality and social inclusion (GESI) policies.
• The existing Measurement, Reporting and Verification (MRV) system is currently inoperative because it is incompatible with the Ministry of the Environment and Sustainable Development's (MADES) Environmental Information System (SIAM).
• Private sector actors in the Agriculture, Forestry, and Other Land Use (AFOLU) sector and local financial institutions (LFIs) lack awareness of climate finance and innovative blended finance mechanisms, contributing to a 'credit crunch' for low-carbon projects.
• Air pollution in Paraguay, particularly in Asunción, is driven by vehicle emissions and the cement and apparel industries, with PM2.5 concentrations (12 µg/m3) exceeding the WHO recommended maximum of 10 µg/m3.
• The proposed grant will implement five workstreams: developing an SLCP diagnostic and strategy, supporting DAE accreditation, raising climate finance awareness, developing a GCF project concept note, and operationalizing the MRV system.

APA

Green Climate Fund (2022). Promoting low-carbon development in Paraguay via low-emission strategies and direct access entities accreditation. https://www.greenclimate.fund/sites/default/files/document/paraguay-gggi-approved-readiness-grant.pdf

Chicago

Green Climate Fund. Promoting low-carbon development in Paraguay via low-emission strategies and direct access entities accreditation. 2022. https://www.greenclimate.fund/sites/default/files/document/paraguay-gggi-approved-readiness-grant.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Promoting low-carbon development in Paraguay via low-emission strategies and direct access entities accreditation |date=6 December 2022 |url=https://www.greenclimate.fund/sites/default/files/document/paraguay-gggi-approved-readiness-grant.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2022promoting, author = {{Green Climate Fund}}, title = {{Promoting low-carbon development in Paraguay via low-emission strategies and direct access entities accreditation}}, institution = {Green Climate Fund}, year = {2022}, month = dec, url = {https://www.greenclimate.fund/sites/default/files/document/paraguay-gggi-approved-readiness-grant.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }