UN Carbon Market Approves First‑Ever Issuance of Credits under the Paris Agreement

(United National Climate Change) A UN Body has approved the first credits to be issued under the UN carbon market established by the Paris Agreement.

The approved activity is a clean‑cooking project in Myanmar, which distributes efficient cookstoves that reduce harmful household air pollution and lessen pressure on local forests.

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.”

The project is coordinated with authorized participants from the Republic of Korea.

Credits authorized for use in Korea can be transferred to Korean entities for use in the Korean Emissions Trading System, contributing to the Republic of Korea’s Nationally Determined Contribution (NDC). The remainder will be used by Myanmar toward 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 a provisional issuance under the Clean Development Mechanism (CDM). Under the Paris Agreement Crediting Mechanism, updated values and more conservative calculations are applied, recognizing earlier investments while ensuring credited reductions reflect the latest available science and information.

These adjustments result in credited reductions that are roughly 40 percent lower than under the CDM, ensuring the issued credits more closely reflect real‑world impact in the current context.

This sets the foundation for the mechanism’s broader role in supporting mitigation activities that deliver tangible community benefits.

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.”

This first issuance also responds to strong private‑sector demand for seeing the UN’s Paris‑aligned carbon market shift from design into real‑world operation.

Approval remains subject to a 14‑day appeal period during which activity participants, the host country, and stakeholders directly affected by the project may submit an appeal.

Looking ahead, there is a growing pipeline of more than 165 host‑Party‑approved projects transitioning from the Clean Development Mechanism into the new Paris Agreement Crediting Mechanism. These activities span sectors such as waste management, energy, industry, agriculture and more, signaling that a wide range of real‑world climate projects across multiple regions are due to follow.