This country note briefly summarizesinformation relevant to both climate change and agriculturein Paraguay, with focus on policy developments (includingaction plans and programs) and institutional make-up. Likemost countries in Latin America, Paraguay has submitted onenational communication to the United Nations FrameworkConvention on Climate Change (UNFCCC) with a second oneunder preparation. Land use change and forestry are thelargest contributors to green house gas (GHG) emissions inthe country. The emission reduction potential is large andseveral reforestation programs have been initiated. Paraguayis among the few countries in Latin America without a singleClean Development Mechanism (CDM) project, and carbontrading opportunities can be explored. Agriculture is highlyvulnerable to climate variability, this coupled withproblems of land degradation in the country. A greateremphasis on developing and applying adequate insurancemechanisms can be placed for better management of publicresources in light of natural disasters in the agriculture sector.