Peru Approves Six New Carbon Credit Protocols

Peru just took a major step forward in the fight against climate change by approving six new carbon crediting methodologies that will help fund environmental projects across the country. One of these methods is currently the only internationally valid approach under Article 6.4 of the Paris Agreement, making Peru an early mover in the global carbon market.

The approval allows companies and conservation groups to earn carbon credits through various environmental projects, from protecting rainforests to developing renewable energy. These credits can then be sold to organizations looking to offset their emissions, creating a financial incentive for climate-friendly work.

This latest approval builds on Peru's rapid progress in establishing its national carbon registry, called Renami. The country launched the registry in November 2024 after months of preparation, and has been steadily adding new methodologies ever since.

Peru now has multiple bilateral agreements in the works, including a deal with Singapore that officials expect to finalize soon. These partnerships allow countries to trade carbon credits while ensuring the environmental benefits are real and properly counted.

The timing matters because Article 6.4 represents a new generation of carbon markets with stricter rules and better transparency. By being among the first nations to adopt these protocols, Peru is positioning itself as a trusted player in what could become a multibillion-dollar global market.

The Ripple Effect

Peru's moves are creating momentum far beyond its borders. As one of the most biodiverse countries on Earth, home to vast sections of the Amazon rainforest, Peru's carbon credit system could channel millions of dollars into protecting critical ecosystems that benefit the entire planet.

The country has already enacted special orders to boost private investment in national parks through carbon projects. This approach turns conservation into an economic opportunity for local communities rather than just a cost, creating jobs while protecting nature.

Other developing nations are watching closely to see how Peru's system works in practice. If successful, it could serve as a blueprint for countries across Latin America, Africa, and Asia looking to monetize their conservation efforts while meeting Paris Agreement targets.

International buyers are also paying attention because they need access to high-quality carbon credits to meet their own climate goals. Peru's methodologies include projects focused on cookstoves, water filtration, renewable energy, and methane reduction, offering diverse options for different types of buyers.

The approval of these six methodologies represents more than paperwork. It creates a clear pathway for turning environmental protection into sustainable economic activity, proving that climate action and development can move forward together.