By Abbas Nazil
A United Nations body overseeing the Paris Agreement’s carbon market has approved a new methodology aimed at reducing nitrous oxide (N₂O) emissions from nitric acid production, marking a significant expansion of global efforts to curb potent greenhouse gases from industrial sources.
The decision was taken at a meeting in Bonn this week by the Article 6.4 Supervisory Body, enabling projects that reduce emissions from nitric acid plants to generate carbon credits under the Paris Agreement Crediting Mechanism.
Nitrous oxide is considered one of the most powerful greenhouse gases, with a warming impact significantly stronger than carbon dioxide, and its concentration in the atmosphere has increased by about 40 percent since 1980.
The gas is widely recognised in global climate frameworks, with nearly all recent Nationally Determined Contributions including measures to address its emissions due to its high climate impact and persistence in the atmosphere.
Nitric acid production is identified as a major industrial source of nitrous oxide emissions, with an estimated 400 to 600 plants operating globally and producing about 70 million tonnes annually, much of it used in fertiliser manufacturing.
Many of these facilities are located in developing countries where emissions reduction technologies have not yet been widely implemented, making them key targets for new climate finance and mitigation efforts.
The newly adopted methodology is expected to allow the scaling up of proven abatement technologies, enabling measurable emission reductions while generating tradable carbon credits under international mechanisms.
Officials involved in the decision said the approval represents a shift toward practical implementation of the Paris Agreement carbon market, expanding coverage into new industrial sectors with high emissions reduction potential.
The Chair of the Supervisory Body, Mkhuthazi Steleki, described the development as a major step forward in delivering real emission cuts through structured carbon market systems, noting that it brings proven solutions into wider use.
He added that expanding methodologies into sectors where immediate action is possible will strengthen global efforts to achieve climate targets through verified reductions.
The Vice-Chair of the Supervisory Body, Jacqui Ruesga, said the latest approvals demonstrate continued progress in building a robust framework for high-integrity climate action and emissions accounting.
Alongside the N₂O methodology, the body also adopted additional technical tools, including a framework addressing lock-in risks to prevent long-term dependence on high-emitting technologies.
It also revised rules on additionality, strengthening requirements to ensure that carbon credit projects deliver emissions reductions beyond standard business practices.
Officials said these updates are essential for maintaining the credibility, transparency, and environmental integrity of the carbon market system under the Paris Agreement.
The Supervisory Body confirmed that further methodologies are under development, with upcoming proposals expected to cover sectors such as clean cooking and household energy use.
These future expansions are intended to broaden access to carbon finance while supporting sustainable development goals in vulnerable and developing regions.
Work is also ongoing to strengthen digital infrastructure, including a registry system for tracking issuance and use of carbon credits globally.
The United Nations concluded that the evolving mechanism is becoming a practical tool for scaling up verified emissions reductions across multiple sectors and regions worldwide.
