Bolivia is set to formalise its carbon market with a national regulatory framework, expected to be made public by the end of April 2025. Jorge Avila, Vice Minister for Environment, made the announcement at the Bolivia Carbon Forum, held in Santa Cruz de la Sierra.
The framework has been in development for some time and has undergone review by independent consultants, with funding provided by the European Union. The government has yet to confirm whether it will pass through Congress or be enacted via national decree.
'It's currently under construction,' Avila told attendees. 'It's been reviewed by independent consultants paid by the European Union. We are still not sure whether it will be introduced via a bill in Congress or via a national decree... but we will likely have it by the end of April.'
A draft bill tabled in December will be set aside in favour of the new framework. Avila was clear on the distinction: that earlier proposal was the work of a single lawmaker, whereas the incoming framework has full government backing. Bolivia's current administration, in place since last year, has taken a markedly more open stance towards private carbon markets.
Capacity building sits at the heart of the new framework. 'Our focus is to integrate private carbon markets as part of the national climate strategy, linking economic development with environmental protection and international cooperation,' Avila said.
The European Union, Germany, Sweden, and the United Kingdom have all contributed to Bolivia's carbon market development. Bolivia is also engaged in talks under Article 6 of the Paris Agreement, the mechanism that enables carbon credit trading between countries.
The country already has a notable presence in the carbon space. Exomad, the world's largest biochar producer, is based in Bolivia and has struck deals with major international companies, including Microsoft. It is targeting an annual carbon capture capacity of one million tonnes of CO2 equivalent by 2027.