UN approves first carbon credits under Paris Agreement market mechanism

Paris Agreement’s carbon credits enable cross-border trade to support emissions reduction and climate goals worldwide.

The United Nations has approved the first credits to be issued under a carbon market established by the Paris climate accord, aimed at reducing emissions – a mechanism that has faced scrutiny over greenwashing concerns.

The UN-run market allows companies and countries to offset their excess emissions by financing projects that cut greenhouse gases in other nations.

The UN Climate Change announced on Thursday that 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.

“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 empower women and girls, who are typically hardest hit by household air pollution,” UN Climate Change Executive Secretary Simon Stiell said in a statement.

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”, Stiell added.