Transition from CDM (Clean Development Mechanism) signals early Operational phase of global Article 6.4 carbon market.
More than 165 climate projects approved by host countries are currently transitioning from the Clean Development Mechanism to the carbon credit mechanism established under the Paris Agreement, marking an early operational phase of the global carbon market governed by Article 6.4.
The projects span multiple sectors, including waste management, energy, industry and agriculture. Their transition reflects a broader effort to align legacy carbon projects with updated international standards designed to ensure stronger environmental integrity and transparency.
As this process unfolds, the global carbon market under the Paris Agreement is gradually shifting from a conceptual framework into real-world implementation.
RELEVANT SUSTAINABLE GOALS
First Carbon Credits Approved for Clean Cooking Project in Myanmar
As an initial step in the new mechanism, the carbon market supervisory body under UN Climate Change has approved the issuance of the first carbon credits for a clean cooking project in Myanmar.
The project distributes energy-efficient cookstoves designed to reduce household air pollution and decrease pressure on forests caused by firewood use.
According to UN Climate Change Executive Secretary Simon Stiell, access to clean cooking technologies remains a global challenge. More than two billion people worldwide still lack access to clean cooking systems, he said.
The approval of the first credits under the Paris Agreement carbon market demonstrates how climate finance mechanisms can support solutions that directly benefit communities.
“Clean cooking protects health, preserves forests, reduces emissions, and empowers women and girls who are most affected by household air pollution,” Stiell said in a statement released on March 7, 2026.
Cross-Border Cooperation With South Korea
The project is implemented with authorised participation from South Korea.
Carbon credits authorised for South Korea may be transferred to entities within the country and used in its national emissions trading system.
At the same time, a portion of the credits generated by the project will remain with Myanmar to support the country’s climate commitments under its Nationally Determined Contribution.
This structure reflects the cooperative nature of the Paris Agreement carbon market, which allows countries to collaborate on emissions reductions while contributing to their respective climate targets.
Stricter Methodology Ensures Environmental Integrity
Mkhuthazi Steleki, chair of the Article 6.4 Supervisory Body, said the first issuance applies a new methodology that is more conservative than the one used under the earlier Clean Development Mechanism framework.
Under the updated approach, credited emission reductions are approximately 40 percent lower than those calculated under the CDM system.
The adjustment is intended to strengthen environmental integrity by ensuring that each carbon credit corresponds to verified emissions reductions.
The clean cooking project had previously received provisional issuance under the CDM. Under the Paris Agreement mechanism, emission reductions are recalculated using updated parameters and the latest scientific methodologies.
Carbon Market Moves From Design to Implementation
Jacqui Ruesga, vice chair of the Article 6.4 Supervisory Body, said the approval represents an important step in activating the Paris Agreement carbon market.
The first issuance signals that the mechanism is moving from the design stage toward implementation, opening the door for a broader pipeline of climate mitigation projects.
However, the project approval remains subject to a 14-day appeal period. During this period, stakeholders may raise objections before the carbon credits are formally issued.
A New Chapter for Global Carbon Markets
The transition of more than 165 projects from the Clean Development Mechanism into the Paris Agreement framework reflects a significant shift in how international carbon markets operate.
While the CDM played a major role in earlier climate agreements, the Article 6.4 mechanism is designed to operate under stricter rules and updated scientific methodologies.
With the first carbon credits approved and hundreds of projects preparing to enter the system, the Paris Agreement carbon market is beginning to take shape as a global platform for financing emissions reductions across multiple sectors.
For countries and communities alike, the transition marks a new phase in the evolving architecture of international climate cooperation.
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