The United Nations has approved the first set of carbon credits under the market mechanism established by the Paris Agreement, marking a major milestone in global climate cooperation.
The mechanism, created under Article 6 of the Paris Agreement, allows countries to trade carbon credits generated from emissions-reduction projects. The goal is to help nations meet their climate targets more cost-effectively while maintaining environmental integrity and transparency.
The newly approved credits are expected to come from projects aimed at reducing greenhouse gas emissions, such as renewable energy development and forest conservation. Supporters say the move could unlock billions of dollars in climate finance, especially for developing countries.
However, critics caution that strict oversight is essential to ensure the credits represent real, measurable, and additional emissions reductions l and to prevent double counting.
The approval represents a significant step forward in operationalising the Paris Agreement’s global carbon market, as countries work to limit global warming and meet their nationally determined contributions (NDCs).