First issuances approved under PACM from Myanmar cookstove project with LoA

The Article 6.4 supervisory body (SB) approved the first request for issuance under the Paris Agreement Crediting Mechanism (PACM) on Thursday February 26. The credits will be issued to a Myanmar-based cookstove program of activity (PoA) that has successfully transitioned from the Clean Development Mechanism (CDM).

The PoA (reference number 10471) has submitted a provisional request for issuance which has completed substantive checks by the SB. Issuance approval is subject to an appeal within 14 days from any stakeholder affected by the project, post which the credits will be eligible for issuance.

Revised monitoring reports submitted by the Myanmar cookstove PoA, which deploys the AMS-II.G. methodology (Energy efficiency measures in thermal applications of non-renewable biomass, version 09) and TOOL33, shows emission reduction achievement of 648,783 tonnes of CO2 equivalent for the January 1, 2021-May 31, 2022 vintage period.

The volume of verified credits is 41.5% less than the estimated reductions in monitoring reports submitted under the CDM, which was at 1,108,379 tCO2e. This is due to the project’s re-evaluation of the fraction of non-renewable biomass (fNRB) values based on the latest available default values from TOOL33. The project revised its fNRB down from 0.615 to Myanmar’s default value of 0.36. This fNRB adjustment mandated by the Article 6.4 SB will result in a significant decrease in the expected PACM supply pipeline.

The PoA is made up of 54 component project activities (CPA), and there are two provisional issuance requests submitted; one for CPA 001-006 (218,955 cookstoves distributed), which has 58,428 tCO2e of the total verified reductions, and a second for CPA 007-054 (864,000 cookstove distributed), which has 590,355 tCO2e of verified reductions.

The project is implemented with the Korean coordinating/managing entity (CME) Climate Change Center (CCC), a non-governmental organization focused on creating climate leadership. As the CME, CCC is responsible for contracting the CPA implementer and monitoring that they fulfil technical requirements of the project. The CPA implementer and local partner for the project is Dry Zone Greening Department (DZGD) which undertook distribution of the cookstoves and data collection through sampling surveys.

The PoA also has a letter of authorization (LoA) from relevant Myanmar authorities. The LoA authorizes use toward achievement of the buyer country’s Nationally Determined Contribution (NDC) and use for other international mitigation purposes (OIMP) which includes usage under International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

As per the issued LoA, for the CPA 001-006, Myanmar will receive 10% and CCC will receive 90% of the issued credits until the December 31, 2025, monitoring period. For CPA 007-054, Myanmar will receive 20% and CCC will receive 80% of the issued credits until the May 31, 2026, monitoring period. After the mentioned period, the allocation ratio will be renegotiated and determined under another LoA.

Once approved for issuance, the credits will be subjected to 5% share of proceeds (SOP) and 2% overall mitigation of global emissions (OMGE) contribution obligations as per the Article 6 guidance. The units subsequently available on issuance will be around 603,368 tCO2e.

Expected use case of the issued credits

Once issued, credits authorized for Korea’s NDC can be used under the Korean Emissions Trading System. Korean Allowance Units (KAU) were priced at $7.09 per tCO2e on December 31, 2025, by the International Carbon Action Partnership’s (ICAP) allowance price explorer.

The credits are also authorized for use under CORSIA, but PACM is yet to be approved by ICAO’s Technical Advisory Body, meaning any issued credits would currently not be tagged as CORSIA-eligible. As the first crediting period for the project starts from August 21, 2019, and the vintages of the issued credits will be 2021-2022, the credits may be eligible under CORSIA Phase 1 if PACM and the used methodology (AMS-II.G.) receives ICAO’s nod for approval.

Separately, there is another cookstove PoA transitioning from CDM in Myanmar (reference number 10415) which is registered under PACM that could be next in line to issue credits. The project managed by Ecoeye, a Korean carbon consultancy firm, also has an LoA from the Myanmar government for use toward achievement of NDCs and OIMP including CORSIA.

However, Myanmar is yet to submit its first Biennial Transparency Report (BTR), which would allow the credits to be fully correspondingly adjusted under the Paris Agreement.

Carbon credit markets have become a critical mechanism for funding decarbonization. By setting a market price for emissions reduction and removal, they influence investment in forestry, industrial capture, and emerging carbon removal technologies. Learn more.

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