UN Carbon Market Approves First-Ever Credits Under Paris Agreement, Marking Major Milestone for Global Climate Action. Clean Cooking Project in Myanmar Becomes First to Issue Credits Under Article 6.4.
UN Climate Change — A United Nations body has approved the first-ever issuance of carbon credits under the UN carbon market established by the Paris Agreement, formally moving the long-anticipated mechanism from framework to implementation.
The inaugural credits come from a clean-cooking project in Myanmar that distributes efficient cookstoves designed to reduce harmful household air pollution and ease pressure on local forests.
The decision marks a significant step in operationalizing Article 6.4 of the Paris Agreement, a mechanism intended to help countries cooperate on emissions reductions while maintaining environmental integrity.
RELEVANT SUSTAINABLE GOALS
Why Clean Cooking Was Chosen First
The approved activity focuses on providing efficient cookstoves to households in Myanmar. The project aims to cut emissions while reducing indoor air pollution and slowing deforestation.
More than two billion people globally lack access to clean cooking. According to UN Climate Change Executive Secretary Simon Stiell, the consequences are severe.
“Over two billion people globally are without access to clean cooking, which kills millions every year,” Stiell said. “Clean cooking protects health, saves forests, cuts emissions and helps empower women and girls, who are typically hardest hit by household air pollution.”
He added that launching the Paris-aligned carbon market with a clean-cooking project demonstrates how the mechanism can channel finance toward activities that deliver measurable benefits in people’s daily lives.
Credits Split Between Myanmar and South Korea
The project is coordinated with authorized participants from the Republic of Korea.
Credits authorized for use in Korea can be transferred to Korean entities and applied within the Korean Emissions Trading System, contributing to the country’s Nationally Determined Contribution under the Paris Agreement. The remaining credits will be used by Myanmar toward its own NDC.
This structure reflects the cooperative design of the Paris Agreement Crediting Mechanism, which enables cross-border collaboration while supporting national climate goals.
Stronger Standards, Lower Credit Volumes
The issuance also signals a shift toward stricter accounting standards compared to earlier carbon market systems.
Mkhuthazi Steleki, Chair of the Article 6.4 Supervisory Body, said the credited reductions are about 40 percent lower than what would have been issued under older mechanisms.
“This initial issuance reflects the careful application of the rules set by countries under the Paris Agreement,” Steleki said. “By applying updated values and more conservative calculations, the credited reductions are about 40 percent lower than what older systems would have issued.
The project had previously received a provisional issuance under the Clean Development Mechanism. Under the Paris Agreement Crediting Mechanism, updated values and more conservative calculations were applied, recognizing earlier investments while ensuring that credited reductions reflect the latest available science.
The adjustments mean that each credited tonne more closely represents a tonne of emissions reduced in real-world conditions.
Building Confidence in a New Carbon Market
Jacqui Ruesga, Vice Chair of the Article 6.4 Supervisory Body, said beginning with a clean-cooking project sends a clear message about the mechanism’s intended impact.
“Starting with a clean-cooking project is a fitting demonstration of 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,” she said.
She noted that the Supervisory Body had requested an updated methodological approach last year to align credits with the best available information and careful calculation of reductions.
“Our focus is on building confidence in this market from the outset, and this first issuance shows that the system is working as intended,” Ruesga said.
The approval also responds to strong private-sector demand for the UN’s Paris-aligned carbon market to move from design into operational reality.
Appeal Period and What Comes Next
The approval remains subject to a 14-day appeal period. During this window, activity participants, the host country and stakeholders directly affected by the project may submit an appeal.
Beyond this first issuance, more than 165 host Party–approved projects are in the pipeline, transitioning from the Clean Development Mechanism into the Paris Agreement Crediting Mechanism. These projects span waste management, energy, industry, agriculture and other sectors.
The breadth of the pipeline suggests that a wide range of climate mitigation activities across multiple regions could soon follow.
The Paris Agreement Crediting Mechanism, also known as Article 6.4, is designed to help countries raise climate ambition and implement national action plans more affordably.
It identifies opportunities for verifiable emission reductions, attracts funding to implement them and enables cooperation among countries and other groups to conduct and benefit from climate activities.
A Supervisory Body oversees the system. Its responsibilities include developing and approving methodologies, registering activities, accrediting third-party verification bodies and managing the Article 6.4 Registry.
A Turning Point for Global Carbon Markets
For years, negotiators and investors alike have awaited a functioning UN-backed carbon market aligned with the Paris Agreement’s safeguards.
With the first issuance now approved, the mechanism has crossed an important threshold. It demonstrates that environmental safeguards, robust standards and a defined system for redress are in place.
The decision does not solve the broader challenges of global emissions. But it establishes a foundation: a carbon market that begins not with speculative credits, but with a project aimed at cleaner air, healthier households and measurable emissions reductions.
As the appeal window closes and additional projects advance through the pipeline, the world will be watching whether Article 6.4 can deliver on its promise — combining climate ambition, environmental integrity and tangible community benefit in a single global framework.
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