By Abbas Nazil
The United Nations has approved the first-ever issuance of carbon credits under the market mechanism established by the Paris Agreement, marking a significant milestone in the global effort to operationalise international carbon trading.
The inaugural credits were granted to a clean-cooking initiative in Myanmar that distributes energy-efficient cookstoves designed to reduce harmful household air pollution and curb deforestation caused by traditional wood-fuel use.
The project is coordinated with authorised participants from the Republic of Korea, allowing a portion of the credits to be transferred to Korean entities for use within the Korean Emissions Trading System, thereby contributing to Korea’s Nationally Determined Contribution under the Paris framework.
The remaining credits will support Myanmar’s own climate targets under its national climate action plan.
Simon Stiell, Executive Secretary of UN Climate Change, said the first issuance demonstrates how the UN carbon market can deliver real-world benefits while mobilising finance for communities most in need.
He noted that more than two billion people worldwide lack access to clean cooking solutions, a situation that contributes to millions of premature deaths annually due to indoor air pollution, while also driving forest degradation and greenhouse gas emissions.
According to him, clean cooking projects protect public health, preserve forests, reduce emissions and empower women and girls who are disproportionately affected by household air pollution.
The Article 6.4 Supervisory Body Chair, Mkhuthazi Steleki, explained that the credited emission reductions were calculated using updated and more conservative methodologies compared to earlier systems.
He stated that the reductions are approximately 40 percent lower than what would have been issued under the previous Clean Development Mechanism, ensuring stronger environmental integrity and alignment with the Paris Agreement’s standards.
The project had earlier received provisional issuance under the Clean Development Mechanism, but the new Paris Agreement Crediting Mechanism applies stricter rules, enhanced safeguards and clearer redress systems to guarantee transparency and credibility.
Article 6.4 Supervisory Body Vice Chair, Jacqui Ruesga, described the clean-cooking initiative as an appropriate starting point, highlighting its measurable climate benefits and social co-benefits such as improved indoor air quality.
The approval remains subject to a 14-day appeal period during which stakeholders and affected parties may raise concerns.
More than 165 projects across sectors including energy, waste management, agriculture and industry are currently transitioning into the Paris Agreement Crediting Mechanism, signalling the broader rollout of the UN’s reformed global carbon market.
