“UN’s First Carbon Credit Approval Raises Concerns: Is the Paris Agreement Crediting Mechanism Flawed?”

The approval of the first project under the Paris Agreement Crediting Mechanism (PACM) by the United Nations has sparked controversy among carbon experts. The Myanmar-based scheme, which distributes fuel-efficient stoves to communities, has been criticized for its flawed methodology and lack of sustainability.

The project aims to reduce deforestation and emissions by providing communities with improved stoves that use less wood for cooking. However, independent carbon credit rater Calyx Global ranked the project in Tier 3, the lowest category, citing issues with the estimation of sustainable harvesting of wood.

One of the key problems with the project’s methodology is the calculation of “non-renewable biomass,” where project developers have the discretion to downplay the amount of sustainable harvesting to maximize the impact of the stoves. The methodology, developed by the non-profit Gold Standard, was also rejected by the Integrity Council for the Voluntary Carbon Market.

The approval of this project highlights a compromise made during the negotiations for the PACM, allowing projects from the previous Clean Development Mechanism (CDM) to apply for approval. This transition window will close at the end of the year, introducing more stringent rules for future projects.

Climate policy expert Lambert Schneider from the Oeko-Institut in Germany believes that the PACM should enforce tougher rules on baselines and additionality. Many projects applying for PACM approval lack additionality, meaning they would have been completed without carbon credit funding.

Despite the controversy surrounding the first approved project, experts believe that with stricter rules and better methodologies, cookstove projects can have significant sustainable development benefits. Buyers are advised to scrutinize the label on PACM credits to determine the project’s integrity and adherence to new rules.