UN approves first carbon credits under Paris Agreement market mechanism

"The UN-run market allows companies and countries to offset their excess emissions by financing projects that cut greenhouse gases in other nations. The new initiative involves a clean cooking project in Myanmar, which distributes efficient cookstoves that reduce pressure on local forests. Implemented in partnership with a South Korean company, the project will generate credits that will count towards the climate targets of South Korea and Myanmar."

"Clean cooking protects health, saves forests, cuts emissions and helps empower women and girls, who are typically hardest hit by household air pollution. The new mechanism can support solutions that make a big difference in people's daily lives, as well as channelling finance to where it delivers real-life benefits on the ground."

"Some critics fear that, if set up poorly, such schemes can undermine the world's efforts to curb global warming by allowing countries or companies to greenwash or overstate their emissions reductions. The UN climate agency said the credited emissions reductions are 40 percent lower than under a previous scheme, as more conservative calculations are applied under the new Paris Agreement Crediting Mechanism."

The United Nations has issued the first carbon credits under the Paris Agreement's carbon market, allowing companies and countries to offset emissions by financing greenhouse gas reduction projects globally. The initial project involves distributing efficient cookstoves in Myanmar through a partnership with South Korea, addressing the fact that over two billion people lack access to clean cooking. This mechanism generates credits toward climate targets for participating nations while providing health, environmental, and social benefits. The new Paris Agreement Crediting Mechanism applies more conservative calculations, reducing credited emissions reductions by 40 percent compared to previous schemes. Critics have raised greenwashing concerns, but the UN emphasizes the system's integrity and its potential to channel finance toward real-world climate solutions.

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