A United Nations body has approved the first carbon credits to be issued under the Paris Agreement’s Article 6.4 carbon market mechanism, marking the transition of the UN-backed system from design to operational phase.
The inaugural credits stem from a clean-cooking project in Myanmar that distributes efficient cookstoves to reduce household air pollution, lower emissions and ease pressure on local forests. The project is coordinated with authorised participants from the Republic of Korea.
UN Climate Change Executive Secretary Simon Stiell said: “Over two billion people globally are without access to clean cooking, which kills millions every year. Clean cooking protects health, saves forests, cuts emissions and helps empowers women and girls, who are typically hardest hit by household air pollution. The first credits to be issued through the UN carbon market under the Paris Agreement come from a clean-cooking project, and they show how this mechanism can support solutions that make a big difference in people’s daily lives, as well as channeling finance to where it delivers real-life benefits on the ground. The opportunities presented by this UN carbon market across all regions are vast, particularly now that strong environmental safeguards, robust standards, and a clear system for redress are in place to ensure integrity, inclusiveness and efficiency.”
Credits authorised for use in Korea may be transferred to entities under the Korean Emissions Trading System, contributing to the country’s Nationally Determined Contribution (NDC). The remaining credits will be used by Myanmar towards its own NDC.
Article 6.4 Supervisory Body Chair Mkhuthazi Steleki said: “This initial issuance reflects the careful application of the rules set by countries under the Paris Agreement. By applying updated values and more conservative calculations, the credited reductions are about 40 percent lower than what older systems would have issued. The result is consistent with environmental integrity requirements and ensures that each credited tonne genuinely represents a tonne reduced and contributes to the goals of the Paris Agreement.”
The project previously received provisional issuance under the Clean Development Mechanism (CDM). Under the new Paris Agreement Crediting Mechanism, updated methodologies and more conservative calculations have reduced credited volumes by around 40% compared with the CDM, aligning credits more closely with current scientific standards.
Article 6.4 Supervisory Body Vice Chair Jacqui Ruesga said: “Starting with a clean-cooking project is a fitting demonstration of where the demand and impact are what the Paris Agreement Crediting Mechanism can do: support activities that bring clear co-benefits for people, such as better indoor air quality, while reducing emissions. Last year we requested the use of an updated methodological approach, which means the credits issued are aligned with the best available information and a careful calculation of the reductions achieved. Our focus is on building confidence in this market from the outset, and this first issuance shows that the system is working as intended.”
The approval is subject to a 14-day appeal period during which project participants, the host country and directly affected stakeholders may lodge an appeal.
More than 165 host-party-approved projects are currently transitioning from the CDM to the new Paris Agreement mechanism across sectors including waste management, energy, industry and agriculture, signalling a broader pipeline of climate mitigation activities expected to follow.
