Africa-Press – Uganda. The UN body tasked with operationalising the Paris Agreement’s carbon market has adopted robust new standards for measuring and verifying emission reductions—raising global expectations for integrity in carbon crediting and tackling the threat of greenwashing head-on.
In a major development during its sixteenth session held this week in Bonn, the Supervisory Body overseeing the Paris Agreement Crediting Mechanism (PACM) adopted two foundational standards: one to establish credible baseline emissions and another to account for unintended emissions displaced elsewhere—commonly referred to as “leakage.”
“This was a very significant meeting,” said Martin Hession, Chair of the Supervisory Body.
“We finally adopted a groundbreaking decision ensuring crediting levels are set consistently with a pathway to net neutrality, through a process of minimum downward adjustment of crediting levels over time.”
The baseline standard defines how many emissions would have occurred without a climate project, forming the yardstick by which carbon reductions are measured.
In a break from previous leniencies, all baselines must now be set at least 10% below historic or current levels, with an automatic 1% reduction each year—ratcheting down over time to prevent inflated credits.
“This isn’t just number-crunching—it’s about avoiding the plague of over-crediting that’s undermined trust in carbon markets,” said an environmental economist familiar with the negotiations.
“If credits aren’t real, they’re not helping the planet.”
The leakage standard ensures any unintended increase in emissions—such as when deforestation is merely displaced to another area—is captured in carbon accounting.
This new requirement is expected to reshape REDD+ projects, which aim to reduce emissions from deforestation and forest degradation.
To qualify, such initiatives must now align with their respective national REDD+ strategies, reinforcing national climate goals.
Maria AlJishi, Vice Chair of the Supervisory Body, underlined the collaborative nature of the reforms.
“We’re grateful for the ongoing engagement and feedback from stakeholders throughout this process. These standards provide the clarity developers need to begin designing activities under the Paris Agreement Crediting Mechanism and are key to fully operationalising it.”
The Supervisory Body also introduced provisions to promote equitable benefit-sharing for host countries and committed to greater capacity building—recognising that not all countries are yet equipped to participate fully in the mechanism.
In a significant update, the body resolved to transition legacy cookstove projects—once seen as easy wins for carbon offsetting—to conform with updated methodologies and more rigorous data requirements.
However, not all transitions are proving smooth. Officials acknowledged that fewer projects under the Clean Development Mechanism (CDM) are expected to migrate into the new PACM framework than previously hoped, creating a potential funding gap until a new wave of projects comes online—likely starting in 2026.
Despite this, Hession remained optimistic.
“We are already uniquely placed to support host countries. We’ve decided to enhance communication, initiate a dialogue on roles and responsibilities, and explore options for targeted support.”
With this week’s decisions, the UN has moved the PACM closer to becoming a credible driver of global emissions reductions—one built on scientific rigour, fairness, and ambition rather than market optics.
The first PACM methodologies are expected to be approved by the end of 2025.
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