Environmental Services Certificates (Paraguay)

A recent law (PES law 3001/06) in Paraguay provides a mechanism for copmensation for environmental damage. The law requires 25% of land to be maintained in natural forest. If 25% is not met, damage must be compensated through reforestation, by purchasing ESCs provided by landowners exceeding the 25% minimum forest cover required. Owners of large impact projects must also invest 1% of their total project budget in ESCs as compensation. In the future, the market will decide the prices of ESCs, as it is not set by government and is not a tax system. In reality, however, the law is only infrequently applied, and some forests have been cleared almost entirely.

Program Statistics

Date Established: 2006 Status: Active Program Type: Compensation
About the program:
Annual size of program (area): (acre) Year of Data:
Cumulative size of program (area): (acre) Years of Data: -
Annual payments of program (US$): Year of Data:
Cumulative payments of program (US$): Years of Data: -
Notes on program size or payments:
Species or habitat types (if applicable):
Notes: http://wwf.panda.org/who_we_are/wwf_offices/paraguay/?151222/INNOVATION-IN-CONSERVATION-THE-CASE-OF-PARAGUAYS-ATLANTIC-FORESTS
Bank regulator information: Last Updated: June 24, 2010