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Civil society groups have called for an investigation into the first carbon credits approved under a new UN mechanism, alleging the project is linked to Myanmar’s military junta – which the UN says is guilty of human rights abuses – and has “massively” overstated its climate impact.

The programme, which aims to cut emissions by distributing efficient cookstoves across Myanmar, received approval to issue around 650,000 carbon credits from the Article 6.4 Supervisory Body in February, in a landmark moment for the Paris Agreement’s carbon market. Only two projects have been given the green light by the mechanism’s regulator so far.

But two reports published last week, led by the Global Forest Coalition and Brussels-based NGO Carbon Market Watch, raised serious concerns about the project’s implementation in conflict zones where civilians have faced airstrikes and mass displacement as well as its emission-reduction calculations.

Project continued after military coup

Myanmar has been ravaged by a brutal civil war since the country’s military overthrew the democratically elected government in a coup d’état in February 2021. The military regime has attacked civilian populations, persecuted ethnic minorities and committed widespread sexual violence, among other serious human rights violations, the UN Special Rapporteur on the situation of human rights in Myanmar said in April.

The cookstove programme started in 2018 under the previous UN-run carbon offsetting scheme – the Clean Development Mechanism (CDM) – as a partnership between Myanmar’s Ministry of Natural Resources and Environmental Conservation (MONREC) and the Climate Change Center (CCC), a South Korean NGO, with investment from private South Korean firms.

    The project continued operating after the coup. For most of the period between 2021 and 2022 in which the issued credits were generated, MONREC was led by Colonel Khin Maung Yi, who was sanctioned by the European Union in 2021 for supporting the military regime, the Global Forest Coalition report said.

    CCC acknowledged engaging with government authorities after the coup but said this “should not be interpreted as political endorsement” of the junta. The South Korean NGO added that abandoning the programme when political circumstances changed “would not necessarily have been the most responsible outcome for the households involved”.

    Conflict prevents on the ground verification

    The Global Forest Coalition report raised particular concerns about the project’s implementation in Myanmar’s central Dry Zone, including Sagaing Region, an anti-junta resistance stronghold that has been most heavily affected by the conflict and routinely targeted by airstrikes and violent attacks. The region accounts for more than a third of Myanmar’s 3.8 million internally displaced people.

    The NGOs said that, in addition to ethical concerns about carbon credits being produced by the military government in an area actively affected by its attacks, this raises questions over the ability to effectively verify the climate integrity of the projects.

    TAK, THAILAND – JANUARY 01: Internally displaced people (IDP) from Myanmar carrying bags of donated supplies from Thailand while crossing the Moei river as seen from behind a fence with razor wire on the river bank in Mae Sot, a district at the Thai-Myanmar border on new year on January 1, 2022 in Tak, Thailand. (Photo by Sirachai Arunrugstichai/Getty Images)

    TAK, THAILAND – JANUARY 01: Internally displaced people (IDP) from Myanmar carrying bags of donated supplies from Thailand while crossing the Moei river as seen from behind a fence with razor wire on the river bank in Mae Sot, a district at the Thai-Myanmar border on new year on January 1, 2022 in Tak, Thailand. (Photo by Sirachai Arunrugstichai/Getty Images)

    Before carbon credits are issued, external auditors need to validate the claims made by project developers and confirm that the emission reductions claimed are correct. This process usually includes site visits to a representative sample of households to check how the improved cookstoves are being used.

    But, because of the “volatile political situation” in Myanmar, the auditing team was not able to leave the capital Yangon and could only speak to project participants remotely via Zoom, project documents show.

    “Due to ongoing armed conflict on the ground, the data currently used to justify carbon credit issuance in Sagaing by the Burmese military junta is unverifiable and highly likely fraudulent,” said Zaw Tuseng, founder and president of the Myanmar Policy Institute, which contributed to the report, in a written statement. “This demands an immediate suspension of credit transfers until a neutral, conflict-sensitive audit can be conducted.”

    “Exceptional circumstances”

    CCC told Climate Home News that, although it recognises that on-site verification is “generally preferable, particularly in complex operating environments”, the decision to opt for remote controls was not taken “as a discretionary shortcut, but as an approved alternative under exceptional circumstances”.

    The South Korean NGO added that it reviewed the feasibility of the project at community level “on an ongoing basis” and it “did not identify conflict-related incidents that directly affected project implementation activities in participating communities during the monitoring period”.

    A spokesperson for the UN climate change body told Climate Home News that, when site access is not possible, the UN carbon credit mechanism allows for “alternative verification approaches while still maintaining conservative assumptions and environmental integrity safeguards”. “These provisions ensure that crediting can only proceed where evidence is reliable,” they added.

    Contested methodology

    Carbon markets are seen as an important channel to raise money to help low-income communities in developing countries switch to less polluting cooking methods, both reducing CO2 emissions and improving air quality. But several cookstove offsetting projects have faced criticism from researchers and campaigners who argue that climate benefits are often exaggerated and weak monitoring can undermine claims of real emission reductions.

    The project in Myanmar uses a contested methodology developed under the earlier Kyoto Protocol that was rejected last year by The Integrity Council for the Voluntary Carbon Market (ICVCM), a watchdog that issues quality labels to carbon credit types, because it found it “insufficiently rigorous”.

    EU carbon credits could supercharge world’s clean cooking push, France says

    After transitioning from the CDM to the new mechanism, the project was required to apply “more conservative” assumptions to calculate emission reductions, which resulted in 40% fewer credits being issued, according to the UN climate change body.

    “The result is consistent with environmental integrity requirements and ensures that each credited tonne genuinely represents a tonne reduced and contributes to the goals of the Paris Agreement,” Mkhuthazi Steleki, the South African chair of the Article 6.4 Supervisory Body, which oversees the mechanism, said in February.

    Too many credits issued

    But Carbon Market Watch claimed in a second report last week that, despite the adjustment, the project is still likely to issue seven times more credits than its real climate impact justifies, comparing its calculations with values from peer-reviewed scientific literature.

    The biggest driver of the credit inflation, the group said, is the failure to account for “stacking” – the widespread practice of households using multiple stoves at the same time, including more polluting ones the project does not monitor.

    Peer-reviewed science considers a stacking rate of 68% a conservative assumption, but the methodology used by the Myanmar programme makes no allowance for it at all, the report said.

    CCC disputed those findings. In a written response to Climate Home News, it said the project was developed under methodologies approved within the UN climate framework and that external recalculations by researchers are not “determinative of the level of crediting achieved”.

    The credits are expected to be used primarily by major South Korean polluters to meet obligations under the country’s emissions trading system – a move that will also enable the government to count those units toward emissions reduction targets in its nationally determined contribution (NDC), the UN climate body told Climate Home News.

    Myanmar will use the remaining credits to achieve in part the goals of its own national climate plan under the Paris Agreement.

    “Over-crediting, at any magnitude, cannot be compatible with the climate ambition of a world striving to limit global warming to 1.5ºC,” said Isa Mulder, an expert at Carbon Market Watch.

    The post UN’s first Paris Agreement carbon credits face human rights and climate concerns appeared first on Climate Home News.

    UN’s first Paris Agreement carbon credits face human rights and climate concerns

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    REPORT: WA Clean Energy, Jobs & Industry Plan

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    Prepared by a coalition of nine Western Australian union, industry, conservation, and community organisations—including UnionsWA, the Conservation Council WA, and the Smart Energy Council—the WA Clean Energy, Jobs & Industry Plan provides a practical roadmap to transform Western Australia into a clean energy powerhouse while creating thousands of secure local jobs.

    Western Australia stands at a pivotal crossroads: lead the global clean energy economy or watch investment, future industries, and secure jobs go elsewhere. The WA Clean Energy, Jobs & Industry Plan outlines a transformative blueprint to harness the state’s world-class solar and wind resources. Discover how legislated renewable targets, green iron manufacturing, and a dedicated regional training strategy can generate tens of thousands of local jobs, lower household bills, and build a resilient, net-zero future for all Western Australians.

    WA needs a clear and forward-thinking plan if it is going to become a competitive renewable energy powerhouse and maintain its economic strength through the energy transition.
    “Western Australians know a faster renewable energy transition will lower their household expenses and prevent harmful climate pollution. But the community also needs clear direction to ensure this transition will create jobs, lower costs and not cause undue environmental harm.
    “Here, sectors representing a broad range of interests have laid the groundwork for those outcomes, clearly outlining what is needed to create a future for WA that is good for the environment, for the climate, for workers and for the economy.

    Summary

    • Creating local employment.
    • Maintaining industrial competitiveness.
    • Lowering household energy costs

    To realize this vision, the framework details actionable measures to follow on from the recent WA Government announcement of a 75% Renewable Energy Target by 2031 for the South West Interconnected System. This includes developing a statewide Renewable Energy Target, coordinating statewide workforce and training pipelines, strategically planning regional infrastructure to safeguard high-value biodiversity and cultural heritage, and ensuring equitable benefit-sharing through household electrification incentives and First Nations equity partnerships. Ultimately, the plan highlights that establishing clear policy and regulatory certainty will unlock lower energy bills, boost power reliability, and secure the state’s global competitiveness in emerging green commodity export markets.

    Photo of wind turbines located near the sea at Albany Wind Farm in Western Australia.

    Key Findings

    • Statewide Renewable Energy Target and Emissions Reduction Targets: The report calls for a statewide RET and 1.5°C aligned emission reduction targets to remove policy risk, lower capital costs, and attract clean energy investment.
    • Transformative Job Creation: Accelerating the transition offers massive employment prospects, including up to 8,800 solar and battery jobs by 2050, as well as 24,000 ongoing and 11,000 construction jobs in a commercial green iron industry.
    • Industrial Electrification & Competitiveness: Requiring large gas users to adopt binding electrification timetables and providing concessional financing will protect existing energy-intensive manufacturers from rising energy costs and impending domestic gas shortfalls.
    • Green Commodity Export Leadership: Western Australia can build new export markets in green iron, green ammonia, and offshore oil/gas decommissioning by constructing shared common-user infrastructure and setting dedicated Green Commodity Export Targets.
    • Coordinated Workforce & Training Pipeline: To address critical skill shortages the plan recommends establishing a WA Clean Energy Jobs Plan 2050, three regional training hubs, and dedicated pathways for female and under-represented apprentices.
    • Environmental Safeguards & Community Benefits: Fast-tracked development must be paired with State Planning Policies that avoid high-biodiversity and cultural heritage lands, mandate new data centres to run on additional renewable power, and deliver household electrification rebates and First Nations equity partnerships.
    Workers at Keppel Prince in Portland manufacture and install wind turbines in Australia's burgeoning industry.

    What you can do

    WA has an opportunity to lead on sustainable, clean energy and associated industries. You can help by:

    REPORT: WA Clean Energy, Jobs & Industry Plan

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    Climate Change

    COP17: Key outcomes agreed at the UN biodiversity conference in Yerevan

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