The United Nations has adopted key standards for a new carbon credit system under the Paris Agreement — Paris Agreement Crediting Mechanism (PACM). This system allows countries and businesses to generate high-quality credits for reducing emissions, contributing to the global fight against climate change.

Two main standards were approved as part of the agreed rules:

1. Baseline standard — it requires setting an initial emissions level below “business as usual” (minus 10% at the start and minus 1% annually), which incentivizes a continuous increase in the ambition of projects.
2. Standard for combating emission transfer (leakage) — it requires that projects stop the possible transfer of emissions to other regions and, in particular, that REDD+ initiatives be linked to the national strategic documents of host countries.

In addition, a decision was made on the equitable distribution of benefits for host countries, and training and support programs for such countries were introduced. Standardized approaches to retrofitting “kitchen” projects (e.g., stove retrofitting) in accordance with the latest technological data.

“This was an extremely important approach. We have finally adopted an innovative solution that ensures a consistent level of crediting on the path to carbon neutrality, through minimal reduction of crediting levels over time” — said Martin Geschen, Chairman of the PACM Supervisory Board.

These solutions pave the way for the launch of the first methodologies and project registration by the end of the year, and the system itself can become a powerful tool for strengthening climate ambition and attracting investments in emission reductions from 2026.

400;”>Source: https://unfccc.int/news/key-rules-agreed-for-credible-climate-project-crediting-under-un-carbon-market?utm_source=chatgpt.com