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In order to promote sustainable development and with a view to fulfilling the commitments entered into under the Kyoto Protocol on Climate Change, in particular with regard to emissions limitation and reduction, Paraguay has implemented policies to enhance energy efficiency in the relevant sectors of the national economy and has taken measures to limit and/or reduce emissions of greenhouse gases.

Accordingly, as part of the clean development mechanism provided for in the Kyoto Protocol, the Government has designed a development policy that is sustainable in environmental, economic and social terms, and that promotes the production and consumption of biofuels (ethanol and biodiesel).

As a result of implementing public policies that incentivize the efficient, economic and environmentally sustainable production of biofuels, sales of ethanol (obtained from sugar cane and grains) were 77% higher in 2016 compared to 2011. Where biodiesel is concerned, consumption was 146,883 litres in 2011 (obtained from vegetable and animal oil), and 10,094,977 litres in 2016 (obtained solely from vegetable oil, resulting in better quality and higher demand).

Moreover, Paraguay has promulgated Law No. 4601/12, as amended by Law No. 5183/14, promoting the use of electric and hybrid vehicles through tax incentives for imports; there is currently pressure to broaden it to include tax incentives for imports of new and used vehicles up to two years old, and to require State bodies and entities to ensure that their new vehicle fleets include at least 25% electric vehicles, preferably assembled in country.

The National Energy Efficiency plan was launched in 2014; its purpose is to generate the general outline and approach to implementing immediate strategic measures on efficient energy use in various sectors as instruments that support sustainable national development.

Similarly MERCOSUR is developing an Energy Efficiency Labelling Scheme for Domestic Appliances with support from the German National Institute of Metrology. The aim is to enhance quality assurance infrastructure for evaluating the energy capacity of domestic appliances and to build consumer confidence by developing awareness around efficiency labelling. At national level the project is coordinated by the Ministry of Industry and Trade and involves the institutions that are part of the National Quality System.

Finally, it should be noted that Paraguay was an active participant in the discussions leading up to the Paris Agreement on Climate Change (COP21) and hopes it will be fully implemented by the international community.

The National Energy Policy 2040 was approved on 10 October 2016 under Decree No. 6.092/2016. Its strategic vision is "To cater for the energy needs of the people and all sectors of production based on criteria measuring quality, socio environmental responsibility and efficiency since energy is a factor that drives economic growth, industrial development and social progress within the framework of regional integration". That vision is to be achieved by reaching strategic targets laid down for the National Energy Sector as a whole and separate targets for each of its subsectors: electricity, binational hydroelectric entities and electrical interconnection; bioenergy and other alternative energy sources; and hydrocarbons.

The Strategic Vision for Energy Policy lays down five core strategic targets that define the goal that its effective implementation and monitoring will achieve, as follows: (1) to guarantee energy security based on criteria for self supply, efficiency, affordability and socio environmental responsibility to support the development of production in Paraguay; (2) to provide access to high quality energy for the entire population, with a specific focus on consumer rights; (3) to use national sources of energy – hydroelectricity, bioenergy and other alternative sources, and to incentivize the production of hydrocarbons as strategic resources to reduce external dependence and increase generation of greater national added value; (4) to enhance Paraguay's position as a hub for regional energy interconnection based on the sustainable exploitation of its natural resources and its strategic geographical location; and (5) to encourage public understanding of the importance of energy and its sustainable use as a factor in all round development.

In terms of regulation, with support from international bodies the Government has strengthened the legal framework of government procurement, with the aim of implementing reforms to bring the national government procurement system into line with international standards on transparency, quality of management and environmental awareness. Additionally, support mechanisms for production, national employment and MSMEs were implemented under existing legislation. The National Government Procurement Directorate is responsible for overseeing compliance with due process.