In February 2026, the UN's Article 6.4 Supervisory Body issued the world's first carbon credits under the Paris Agreement Crediting Mechanism (PACM). The issuance covers emission reductions from a clean-cooking project in Myanmar — the Distribution of Improved Cookstoves project under the CCC Programme of Activities (UNFCCC reference: 10471) — which distributes efficient cookstoves that reduce household air pollution and reduce pressure on local forests.
PACM is the successor to the Clean Development Mechanism (CDM) established under the Kyoto Protocol. The key difference is rigor: PACM credits apply emission reduction calculations that are 40% more conservative than CDM-era equivalents, using more stringent baseline methodologies and additionality criteria. The goal is to ensure that every tonne claimed under PACM represents a genuine, additional, and permanent reduction.
The Supervisory Body has also approved the first PACM methodology — for landfill gas flaring and use — with additional methodologies across sectors expected throughout 2026. PACM operates within the Article 6.4 framework, meaning that credits can be used both by host countries toward their Nationally Determined Contributions (NDCs) and by corporate buyers for voluntary claims, subject to corresponding adjustments to prevent double counting.
PACM's operationalisation was a key outcome of COP30 in Belém in November 2025, where funding for the mechanism was secured and the Supervisory Body's governance structure was confirmed. The first issuance in February 2026 means PACM has moved from institutional framework to functioning market infrastructure in under three months — a faster transition than most observers expected.
The mechanism is now accepting project registrations, issuing credits, and publishing approved methodologies. For developers working across Article 6 pathways — both bilateral Article 6.2 deals and the multilateral Article 6.4 mechanism — PACM represents the most structurally sound route to internationally recognized, double-count-proof carbon credits.
Context: Switzerland completed the first-ever ITMO transfer under Article 6.2 with Thailand in January 2024. PACM's first issuance under Article 6.4 in February 2026 closes the last remaining gap in the Paris Agreement carbon market architecture becoming operational. Both pathways are now live.
PACM's launch is the most structurally significant event in international carbon markets since the Paris Agreement itself. For TrustVal's clients working on project development, advisory, and corporate carbon strategy, the implications are immediate: PACM credits will command a premium because they eliminate double counting by design, carry UN-backed governance, and reflect the most rigorous additionality standards in the market.
For corporate buyers currently relying on VCM credits for Scope 3 and supply chain claims, PACM offers a credible pathway to credits that can survive regulatory and reputational scrutiny. For project developers, the approved PACM methodology pipeline defines the priority sectors for investment. TrustVal monitors all PACM methodology approvals and advises clients on project positioning across both Article 6.2 and 6.4 frameworks.
TrustVal helps corporate buyers and project developers navigate carbon markets with confidence. Talk to our team about Article 6 strategy and PACM project positioning.
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