Peru to showcase Article 6 progress with three buyer countries at COP31 and join tropical forest fund board

MINAM said on Monday that Peru will use COP31 to present progress on its carbon market cooperation with three buyer countries. It will also take a seat on the steering committee of a major tropical forest finance initiative.

Peru was a pioneer of Article 6. It signed the world’s first bilateral Article 6 agreement with Switzerland in October 2020 and an Implementation Agreement with Singapore in 2025. In March 2026, MINAM issued its first Letter of Authorisation, to an improved cookstoves project developed by Microsol under the Swiss agreement, allowing up to 726,300 ITMOs to be transferred between 2021 and 2030. Earlier this month, MINAM said it had 12 projects in the pipeline with Switzerland and Singapore, potentially reducing 8.4 million tonnes of CO₂e by 2030 and attracting around US$250 million in finance. It also reaffirmed its intention to sign an Article 6.2 agreement with South Korea.

Projects selling ITMOs from Peru must enrol in the National Registry of GHG Mitigation Measures (RENAMI) and receive a Letter of Authorisation from MINAM. Singapore bought nature-based credits from Peruvian REDD+ projects as part of a purchase of more than 2 million credits announced in 2025. Its agreement with Peru lists Verra’s VM0048 REDD+ methodology among eligible approaches.

Signals to watch

• A third buyer diversifies demand: Adding a third buyer, likely South Korea, would reduce Peru’s dependence on Swiss and Singaporean demand. Watch for an agreement signing or announcement in Antalya, and for the first Korean-bound project authorisations.
• First transfers are the credibility test: Peru’s progress is significant, but the first actual ITMO transfer under the Microsol cookstove project is the milestone buyers and investors will watch most closely as proof that its system works end to end.
• Forest finance and Article 6 converge: A seat on a major tropical forest fund’s steering committee gives Peru influence over how results-based forest finance is designed. Watch how Peru keeps REDD+ ITMO sales separate from fund payments to avoid double claiming on the same forest outcomes.
• REDD+ supply to Singapore: With Singapore accepting nature-based credits and VM0048 on the eligibility list, Peru is positioned as a leading Latin American supplier of forest ITMOs. Developers should watch Singapore’s next procurement rounds and RENAMI’s approval pace.
• COP31 showcase value: Expect Peru to present itself as a model host, with an early bilateral agreement, a working national registry and a diversified pipeline. Other Latin American hosts such as Chile, Paraguay and Panama will be competing for the same buyer attention.

Sources:

• Carbon Pulse – Peru aims to attract US$250 mln with carbon project pipeline
• Carbon Pulse – Peru seeks endorsed methodologies, first ITMO transaction
• carbon-mechanisms.de – First bilateral agreement on Article 6 cooperation signed
• MINAM – Peru–Singapore pre-approved methodologies list