The UN body overseeing the Paris Agreement’s international carbon market has approved its first methodology, marking a significant step toward operationalizing the long-awaited system for trading emission reductions.
The new framework, adopted by the Article 6.4 Supervisory Body, details how to calculate emission cuts from landfill methane management projects. Methane is a greenhouse gas over 80 times more potent than carbon dioxide over 20 years.
“This is a breakthrough for the Paris Agreement Crediting Mechanism,” said Martin Hession, Chair of the Supervisory Body. “As the world looks for credible ways to cut emissions and deliver on climate promises, I hope this is only the first of many innovative methodologies.”
First Paris-Aligned Credit Methodology
The approved methodology sets the rules for how landfill methane emissions can qualify for UN-backed carbon credits. It is the first in the world to outline how project baselines can align with Paris Agreement targets in practice.
The system introduces a downward adjustment mechanism that gradually lowers crediting levels over time. Projects that flare methane will see credits decline faster, while those that use the gas to generate energy will retain higher levels for longer.
This approach, the UN said, incentivizes better climate solutions, encourages innovation and avoids locking in less sustainable technologies.
Market Now Fully Operational
With this approval, the UN carbon market becomes fully operational. Developers can now submit projects for registration under the Paris-aligned framework. Additional methodologies for other project types, such as renewable energy, are expected soon.
“Starting with landfill methane, we’re showing how carbon markets aligned to the Paris Agreement can deliver real-world solutions,” Hession said.
Alongside the methodology, the Supervisory Body adopted an investment analysis tool. This requires project developers to prove that their projects would not be financially viable without carbon credit revenue, ensuring only genuine emission reductions earn credits.
Strengthening Integrity and Transparency
Since countries agreed on the market’s rules at COP29, the Supervisory Body has focused on building a system that ensures integrity and transparency.
In 2025, the Body approved standards to define how projects estimate avoided emissions, also referred to as the baseline, and account for possible unintended increases elsewhere or leakages.
It also adopted a reversal standard to safeguard stored emissions and prevent the loss of climate benefits over time.
A separate standard was designed to support projects in communities lacking basic needs, ensuring that the mechanism benefits vulnerable populations.
Next Steps at COP30
At the upcoming COP30 in Belém, Brazil, the Supervisory Body will present its annual report to Parties of the Paris Agreement. Governments may then clarify or expand their mandate and guide future work on new methodologies and market rules.
The Supervisory Body’s presentation at COP30 is expected to shape the next phase of global carbon market governance, setting the tone for future cooperation among countries.
The Paris Agreement Crediting Mechanism — also known as Article 6.4 — enables countries to cooperate to reduce emissions while advancing their national climate goals.
It aims to lower the cost of meeting commitments and attract private investment into verifiable climate projects.
With its first methodology approved ahead of COP30, the mechanism now enters its operational phase, a key milestone toward making international carbon markets a reality under the Paris Agreement.
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