The United Nations on Thursday approved the first carbon credits under a new global market set up to help reduce greenhouse gas emissions, marking a key step in a system that has faced concerns over possible misuse, AFP reported.
The market operates under the 2015 Paris Agreement and allows countries and companies to offset excess emissions by funding projects that lower greenhouse gases elsewhere. Supporters say the system can channel finance into climate-friendly projects, while critics warn that weak rules could allow governments or firms to exaggerate their climate progress.
The first credits under the new mechanism have been issued for a project in Myanmar that distributes improved wood-burning cookstoves. According to the UN climate agency, the stoves reduce harmful indoor air pollution and decrease pressure on local forests by using less fuel. The project is being implemented in partnership with a South Korean company, and the resulting credits will count towards the climate goals of both Myanmar and South Korea.
The UN body supervising the mechanism said emissions reductions under the new system are calculated more conservatively and are 40 per cent lower than those under an earlier scheme. Jacqui Ruesga, vice chair of the supervisory body, said the first issuance shows the system is functioning as intended and aims to build trust in the market from the beginning.
Data from the World Health Organization show that more than two billion people worldwide still cook using open fires or inefficient stoves fuelled by kerosene, coal or biomass such as wood, crop waste or dung. The resulting household air pollution causes millions of deaths each year. The improved stoves used in the Myanmar project burn biomass more efficiently, reducing smoke inside homes and cutting fuel use. However, the WHO estimates that at current rates, only 78 per cent of the global population will have access to clean cooking by 2030.
UN climate chief Simon Stiell said clean cooking helps protect health, conserve forests, lower emissions and support women and girls, who are often most affected by indoor air pollution. He added that the new carbon market offers significant opportunities across regions, particularly as environmental safeguards and oversight systems have been put in place.Rules for the carbon market mechanism were finalised at the UN’s COP29 climate summit in Azerbaijan in 2024. Environmental group Greenpeace had earlier raised concerns that loopholes in the agreement could allow fossil fuel companies to continue polluting. Other environmental advocates, however, said the framework provides clearer guidance for regulating carbon credit trading than previous arrangements.
