REGULATORY · MARKET STRUCTURE · GLOBAL
Paris Agreement carbon market (Article 6.4): first UN-approved credits
Change
UN Climate Change approved the first carbon credits under the Paris Agreement’s UN-run market mechanism, tied to a clean-cooking cookstove project in Myanmar that will generate credits counted toward South Korea and Myanmar’s climate targets.
Why it matters
The approval marks the first issuance pathway under the UN-run Paris Agreement market mechanism, moving it from framework to operational credit generation. The initial credits come from a Myanmar clean-cooking project distributing efficient cookstoves, implemented with a South Korean company, and the credits are designated to count toward South Korea and Myanmar’s climate targets. This creates a new compliance-relevant unit for entities relying on international carbon markets, with implications for credit eligibility, accounting, and reputational exposure given ongoing integrity concerns. The project type (clean cooking/household energy) also signals which methodologies may be prioritized early in the mechanism’s rollout.
Implications
- • First UN-approved Article 6.4 credits become available as a new eligible unit type
- • Precedent set for crediting rules and integrity expectations under the UN mechanism
- • Credits explicitly linked to national climate targets, tightening accounting constraints
- • Clean-cooking projects gain a UN-backed pathway to monetize emissions reductions
Who is affected
- • National climate authorities using international credits toward NDCs (e.g., South Korea, Myanmar)
- • Project developers and carbon credit issuers seeking Article 6.4 registration/issuance
- • Companies using offsets for compliance or target-claiming where UN eligibility matters
- • Carbon market intermediaries (brokers, registries, auditors) handling UN-issued units
Source
Topics
World & Politics Policy & Regulation Climate & Environment Climate Change Carbon Markets