Paris Agreement’s First Carbon Credit Project

Why in News?

At least 130 civil society organisations urged the UN’s Paris Agreement Crediting Mechanism (PACM) Supervisory Body to suspend carbon credits linked to a cookstove project in Myanmar.

Cookstove project

• The project became the first to receive carbon credits under Article 6.4 of the Paris Agreement in February 2026.
• Managed by – Climate Change Center (CCC) in South Korea.
• Primary activity – It involves distributing fuel-efficient Envirofit M5000 cookstoves to households in Myanmar.
• Aim – To achieve more than a 50% reduction in household firewood consumption.
• Expected outcomes
  • A reduction in greenhouse gas emissions,
  • Lower pressure on local fuelwood resources, and
  • Reduced household fuel consumption.
• Distribution of Carbon Credits
  • Carbon credits authorized for use in South Korea may be transferred to Korean entities to fulfill emissions trading system obligations.
  • Myanmar will utilize the remaining credits to achieve its national climate commitments.
• Major Concerns Raised by Civil Society Groups
  • Environmental Integrity – Possible overestimation of emission reductions and carbon credits.
  • Independent Verification – Concerns over limited, remote-only verification and inadequate stakeholder representation.
  • Human Rights and Governance – Questions regarding project oversight, independence, and governance amid political instability.
  • Gender and Community Participation – Insufficient inclusion of women’s perspectives and weak household-level monitoring.

Reference

Down To Earth | Paris Agreement’s First Carbon Credit Project