UN Approves First Carbon Credits Under Paris Agreement: Big Climate Shift or Greenwashing Risk?

The United Nations has officially approved the first ever carbon credits under the Paris Agreement‘s carbon market mechanism. The credits come from a clean cooking project in Myanmar which is designed to reduce greenhouse gas emissions and protect forests. This marks a historic moment in global climate governance. The move enables countries like South Korea and Myanmar to trade verified emissions reductions. However, experts are also warning about possible greenwashing risks if the system is not strictly monitored and transparently implemented.

First UN Carbon Credits Under Paris Agreement: What Has Been Approved?

• The United Nations Framework Convention on Climate Change (UNFCCC) has approved the first credits under the Paris Agreement Crediting Mechanism (PACM).
• This new carbon market mechanism allows countries and companies to offset excess emissions by investing in emission reducing projects abroad.
• The first approved project is a clean cooking initiative in Myanmar, partnered with a South Korean company.
• These UN carbon credits will count toward the climate targets of both Myanmar and South Korea.
• The system was finalized under new rules adopted at COP29 in Azerbaijan (2024).

This marks the operational start of the long-awaited global carbon trading system under the Paris Agreement.

Clean Cooking Project in Myanmar

The project distributes efficient cookstoves that burn woody biomass more effectively.

• These stoves use less fuel and reduce indoor smoke pollution.
• Lower fuel demand reduces deforestation pressure in Myanmar.
• The project directly cuts greenhouse gas emissions, generating tradable UN carbon credits.
• According to the World Health Organization (WHO), over 2 billion people globally still rely on unsafe cooking methods.

The clean cooking project in Myanmar not only supports climate change mitigation but also improves public health and empowers women, who are most affected by indoor air pollution.

Why the Paris Agreement Carbon Market Mechanism Matters Globally

• The Paris Agreement (2015) aims to limit global warming to well below 2°C, preferably 1.5°C.
• Article 6 of the agreement allows cross-border carbon trading.
• The newly approved UN carbon credits activate this system for the first time.
• The UN climate body states emissions reductions are calculated 40% lower compared to previous systems to ensure stricter standards.
• The mechanism is supervised by an independent UN body to maintain transparency.
• This global carbon market mechanism is expected to mobilize billions in climate finance for developing countries.

COP29 Azerbaijan and Greenwashing Concerns in Carbon Credits

• Rules for the Paris Agreement carbon market mechanism were finalized at COP29 in Azerbaijan (2024).
• Environmental groups like Greenpeace have warned about potential loopholes.
• Critics argue weak oversight could allow countries or companies to exaggerate emissions reductions.
• However, UN officials state that stricter accounting standards reduce such risks.
• The credibility of UN carbon credits will depend on transparency, monitoring, and independent verification.
• The debate highlights the balance between enabling climate finance and preventing misuse of carbon markets.

Paris Agreement and Carbon Markets

• The Paris Agreement, adopted in 2015 and it is a global treaty under the UN to combat climate change.
• Nearly 200 countries agreed to reduce greenhouse gas emissions and limit global warming.
• Article 6 of the agreement allows countries to cooperate through carbon markets.
• The new Paris Agreement Crediting Mechanism (PACM) replaces older systems like the Clean Development Mechanism (CDM).
• It introduces stricter emission accounting standards.
• The approval of the first UN carbon credits marks the operational launch of this new global carbon trading system.

Question

Q. The first carbon credits under the Paris Agreement were approved for which project?

A. Solar park in India
B. Wind farm in Brazil
C. Clean cooking project in Myanmar
D. Hydropower plant in Nepal