New framework aims to ensure integrity, equity, and transparency in the global carbon crediting mechanism.
A United Nations supervisory body responsible for implementing the carbon market under the Paris Agreement has adopted two landmark standards to strengthen the integrity and ambition of climate action through the Paris Agreement Crediting Mechanism (PACM).
This decision is expected to bolster global efforts to reduce greenhouse gas emissions by enabling the generation of high-integrity carbon credits.
The new standards, agreed during a recent meeting of the Supervisory Body of the Paris Agreement, set out how emission-reducing projects will measure their actual climate impact.
The goal is to ensure that credits issued under the mechanism are ambitious, real, additional, and verifiable core principles that African countries, in particular, have long demanded be safeguarded to avoid exploitation and ensure fair participation in global carbon markets.
Key Standards Adopted
The Supervisory Body adopted two central standards, which are the Baseline Standard, which sets a framework for estimating the emissions that would have occurred without the carbon-reducing project in place.
The standard includes a mandatory downward adjustment, meaning historic or current baselines must be set at least 10% below business-as-usual emissions.
Furthermore, a minimum 1% annual downward revision will apply across all baseline methodologies, encouraging continual improvement and preventing over-crediting.
The second is the Leakage Standard, which addresses potential unintended increases in emissions that may occur elsewhere as a consequence of the project.
Crucially, it stipulates that Reducing Emissions from Deforestation and Forest Degradation (REDD+ projects must be embedded within national REDD+ strategies.
This ensures coherence with national climate policies and bolsters the credibility of forest-related emission reductions, a priority for African countries rich in forest cover such as the Democratic Republic of Congo, Gabon, and Nigeria.
Martin Hession, Chair of the Supervisory Body, said the new policy is not just a technical rule.
“They are a vital safeguard against greenwashing and a commitment to genuine climate impact,” he said.
Hession added that the new standards would ensure crediting levels are aligned with the Paris Agreement’s net-zero goals.
“We are uniquely positioned to support host countries considering crediting. A dedicated channel for them to secure a fair share of mitigation benefits is now in place,” he said.
Africa’s Opportunity and Challenge
The PACM, unlike its predecessor, the Clean Development Mechanism (CDM) under the Kyoto Protocol, emphasizes national ownership and alignment with host countries’ climate commitments.
This distinction is critical for African nations, which have historically contributed the least to global emissions but suffer the most from climate impacts.
Dr. Fatoumata Diallo, a climate finance expert based in Dakar, said the new mechanism provides an opportunity for African countries to monetize their climate efforts.
“But the integrity of these standards is essential to ensure that projects deliver real benefits both for the environment and local communities,” she said.
The Supervisory Body also committed to a process of consultation on how benefits from crediting activities will be equitably shared with host countries.
This aligns with broader demands from African negotiators for climate justice, particularly in discussions around loss and damage and carbon pricing at COP summits.
Transitioning Old Projects and Strengthening National Systems
In addition to the new standards, the Supervisory Body agreed to transition existing cookstove projects to the new mechanism using updated methodologies and data.
Cookstove initiatives have been widely implemented across Africa, offering both emissions reductions and health benefits by replacing traditional open-fire cooking with cleaner alternatives.
However, the transition from the CDM to PACM has not been as swift or expansive as initially hoped.
The Body acknowledged that fewer than anticipated project transitions from the CDM may create a short-term funding gap until a pipeline of new projects begins to emerge from 2026 onward.
To address this, there will be a renewed emphasis on capacity building in developing countries.
This includes a clearer definition of host country roles, support for the creation of national registries, and technical guidance for local project developers.
Maria Al-Jishi, Vice Chair of the Supervisory Body, expressed appreciation for the continued engagement of stakeholders.
“These standards now give project developers the clarity they need to begin designing and implementing activities under PACM,” she said.
Next Steps
The first methodologies under PACM are expected to be formally approved by the end of 2025. The Body also committed to developing additional tools and guidelines, including a mechanism registry to track carbon credit issuance and transfers.
For Africa, the implementation of these new standards could be a defining moment in shaping its participation in international carbon markets, provided that countries invest in the necessary infrastructure and ensure strong governance at the national level.
As countries prepare to submit their next round of Nationally Determined Contributions (NDCs) under the Paris Agreement, the role of PACM in supporting climate ambition, finance, and sustainable development is expected to grow.
The global carbon market, once plagued by concerns over double counting and a lack of transparency, may finally be turning a corner where African voices, forests, and innovations are not only heard but fairly rewarded.
By Dare Akogun
