Publication: Paraguay Country Climate and Development Report
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2025-08-01
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2025-08-01
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Paraguay, an upper middle‑income country (UMIC), is blessed with abundant natural resources. This reliance on natural resources makes Paraguay vulnerable to weather‑related shocks, including those stemming from climate change. Extreme weather events such as droughts and floods are regular occurrences in Paraguay. While the country is accustomed to experiencing such events, climate change is projected to increase the frequency and severity of these shocks, potentially reducing crop yields, increase transportation costs, and disrupting energy production. Climate change is also expected to result in higher temperatures in Paraguay, potentially having negative effects on health, learning, and worker productivity. Increasing resilience to climate shocks is therefore key to ensure climate change does not hamper Paraguay’s socioeconomic progress. Opportunities and challenges for decarbonizing Paraguayan economy are different from the ones faced by most countries. The Country Climate and Development Report (CCDR) explores opportunities and challenges that climate change poses to Paraguay’s development. The report examines how Paraguay can build better resilience to climate shocks. It also examines how Paraguay can benefit from decarbonization by leveraging its hydropower sector and transforming its forestry, agriculture, and transport sectors. Finally, it discusses how the government can prioritize and finance investments for climate change adaptation and mitigation and leverage more action toward these objectives from the private sector.
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“World Bank Group. 2025. Paraguay Country Climate and Development Report. CCDR Series. © World Bank Group. http://hdl.handle.net/10986/43534 License: CC BY-NC-ND 3.0 IGO.”
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