On the second day of the 2nd EU-Paraguay Investment Forum, held on June 25th at the Central Bank of Paraguay, Paraguay successfully presented 15 carefully selected sustainable projects to European investors, creating an opportunity to attract large-scale investments ranging from approximately $10 million to $4 billion. This forum focused on strengthening economic cooperation with the European Union (EU) and attracting green investments for Paraguay's sustainable development.
Major Sustainable Projects Unveiled in Key Sectors
The projects unveiled focused on areas crucial for Paraguay's growth and essential for combating climate change, including sustainable forest production, renewable energy and green hydrogen, and sustainable logistics and transportation. These projects underwent a rigorous selection process with the full support and advice of the Investment and Export Network (Rediex), under the Ministry of Industry and Commerce (MIC) of Paraguay.
Javier Viveros, Vice Minister of Rediex, emphasized that the biggest innovation of this forum was the opportunity to directly introduce selected projects to investors. He stated that "the MIC will continue to expand the pool of projects to provide more alternatives for those looking to invest in Paraguay," underscoring Paraguay's proactive stance on foreign investment.
Vice Minister Viveros also highlighted the robust commercial relationship between Paraguay and the EU. Currently, Paraguay exports approximately $1.4 billion worth of goods to the EU annually, and the EU's cumulative direct investment in Paraguay totals $2.5 billion. These figures demonstrate the EU's importance as a key economic partner for Paraguay.
Diverse Projects Introduced to Attract Investment
Key projects introduced to European investors include:
Forestry Sector: 'Proyecto Virtuoso' by Forestal Sylvis, 'Alianza Verde' by Tecnoforestal, 'Chaco Vivo ARR' by Atenil, 'SAIFF II' by Silvipar, 'Inversión en Forestal Felber' by Forestal Felber, 'Proyecto Prosperidad' by Raizes, 'Proyecto RCS: Reforestación, Carbono y Sostenibilidad' by Efisa, and 'Reforestación de Impacto en el Chaco' by Investancia. These projects contribute to carbon absorption and biodiversity conservation through sustainable forest management, aiming for eco-friendly timber production. Reforestation projects in the Chaco region, in particular, are expected to play a crucial role in climate change mitigation.
Renewable Energy and Green Hydrogen: 'GESA Energía Solar' by Gesa Holding, 'Green OHM' by Vía Magna Pannoniae kft, 'Polo de Fabricación Tecnológica' by Heliotec, and 'Proyecto Duncan' by HY2GEN. These projects focus on expanding renewable energy production, including solar power, and generating green hydrogen, a future energy source. They demonstrate Paraguay's strategy to accelerate its transition to a clean energy hub by leveraging its abundant water resources and sunlight. Green hydrogen projects like 'Proyecto Duncan' have the potential to elevate Paraguay's standing in the rapidly growing global market for eco-friendly energy.
Sustainable Logistics and Transportation: 'Green Log' by ATL, 'Wembé Circular' by Wembé, and 'Edificios eficientes' by Teclim. These projects aim to improve logistics efficiency, establish eco-friendly transportation systems, and reduce carbon emissions through the construction of energy-efficient buildings. They reflect Paraguay's plan to grow into a sustainable logistics hub in South America, utilizing its geographical advantages.
Discussion of Sustainable Finance Mechanisms and Enhanced Cooperation
Prior to the project presentations, a panel discussion on 'Sustainable Finance Mechanisms' deeply explored the importance of sustainable investment. Miriam Ferran of the Directorate-General for International Partnerships (DG INTPA) at the European Commission praised Paraguay as a promising destination for sustainable investment and emphasized the need for green finance support to combat climate change. She also stated the EU's commitment to supporting green bond issuance by allied nations and expressed willingness to collaborate on research and development to promote green investment in Paraguay. This indicates strong EU support for Paraguay's sustainable development.
Marco Diogo, Representative of the European Investment Bank (EIB) in Brazil, stated that 60% of EIB loans are allocated to climate change mitigation projects, citing the EIB's support for infrastructure improvement projects by Paraguay's national electricity company (ANDE). This shows European financial institutions' active participation in building Paraguay's eco-friendly infrastructure.
Stella Guillén, President of the Development Finance Agency (AFD) of Paraguay, explained that the AFD has funded projects in the industrial and forestry sectors, as well as for small and medium-sized enterprises (MSMEs), over the past decade. She highlighted AFD's pioneering role in issuing sustainable bonds. The efforts of Paraguay's own financial institutions in sustainable finance serve as a positive signal for attracting foreign investment.
Felipe González, Vice Minister of Economic Planning at Paraguay's Ministry of Economy and Finance (MEF), emphasized the reform of the national portfolio for long-term development, stating that the environment and energy sectors will be one of the key pillars of the '2030 National Development Plan' currently being formulated. This signifies that the Paraguayan government prioritizes sustainability as a central aspect of its national development strategy.
A Platform for International Cooperation
This forum is recognized as an important platform for strengthening trade, investment, and cooperation between Paraguay and Europe. The two-day event brought together key figures and business leaders from various countries, including Argentina, Germany, Belgium, Bolivia, Brazil, Chile, Colombia, Spain, the United States, Estonia, Finland, France, Greece, Hungary, Italy, North Macedonia, Lebanon, Poland, Portugal, Peru, Rwanda, Switzerland, Sweden, Taiwan, and Uruguay, fostering a strong environment for international collaboration.
The EU-Paraguay Investment Forum demonstrated Paraguay's strong commitment to building international partnerships for sustainable development and accelerating its transition to a green economy. The successfully attracted investments are expected to drive the growth of Paraguay's green industries, contribute to climate change mitigation, and ultimately have a positive impact on national economic development. Through this forum, Paraguay has taken a significant step towards a sustainable future and is projected to attract more green investments through continued cooperation with the EU.
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