Article 6.4 Is Live: What the First UN Carbon Credits Mean for India in 2026
On 26 February 2026, the UN's Article 6.4 Supervisory Body approved the first-ever issuance of credits under the Paris Agreement Crediting Mechanism (PACM). The batch was small, but the signal is large: a UN-run, host-country-authorised crediting system now exists in practice, not just on paper. For Indian companies buying, selling or planning around carbon credits, here is what it changes and what it does not.
What was actually issued
The first issuance covered a cookstove programme in Myanmar, transitioned from the Clean Development Mechanism (CDM). Reported volume was 58,428 tonnes of CO2e for the period 1 January 2021 to 31 May 2022, recalculated using more conservative methodological approaches than the earlier CDM figures. The approval carried a 14-day appeal window.
More than 165 host-country-approved projects are reported to be moving from the CDM into Article 6.4. That pipeline, not the first batch, is what will shape supply over the next few years.
Why Article 6.4 is different from the voluntary market
Host-country authorisation is built in. Credits are issued with the host government's approval, which matters for corresponding adjustments and avoiding double claiming.
A single UN-supervised rulebook. Methodologies, baselines and additionality tests are set centrally by the Supervisory Body rather than by competing private standards.
A share of proceeds is directed to adaptation and overall mitigation of global emissions, which makes the units structurally different from a standard voluntary credit.
Article 6.4 is not a replacement for the voluntary market. It is a new, stricter tier that sits above it, and buyers will start asking which tier a credit belongs to.
What it means for Indian buyers
Indian corporates today mostly meet two needs with carbon credits: voluntary claims and, for obligated entities, compliance under the Carbon Credit Trading Scheme (CCTS). Article 6.4 units are a third category. They are unlikely to be eligible for CCTS compliance by default, so treat them as a quality-and-claims tool, not a compliance shortcut.
If you buy credits for neutrality or reduction-plus-contribution claims, the practical question is verification depth. Our guide to how carbon credit verification works for Indian buyers explains the due-diligence steps that become even more important as higher-integrity units appear.
What it means for Indian project developers
Developers of cookstove, renewable energy, methane and nature-based projects now have a clearer long-term route: register under a UN mechanism and, with government authorisation, sell internationally. Renewable developers should read our note on which carbon credit routes remain open in 2026 because additionality rules for grid-connected renewables remain tight.
Two cautions apply. First, authorisation and corresponding-adjustment decisions sit with the government, so timing is uncertain. Second, conservative recalculation, as seen in the first batch, means issued volumes can come in well below earlier expectations. Model your revenue on the conservative case.
Exporters and the CBAM connection
Article 6.4 credits do not reduce a carbon border levy bill. Border mechanisms look at embedded emissions and the carbon price actually paid, not voluntary or international offsets. Our analysis of the UK CBAM recognition of India's CCTS shows where domestic carbon pricing, not credits, delivers relief. For the latest across CCTS, CBAM and COP31, see our October 2026 climate brief.
A practical checklist for the next 12 months
Ask every credit seller whether the project is, or plans to be, registered under Article 6.4 or another authorised pathway.
Separate your portfolio by purpose: compliance (CCTS), voluntary claims, and any export-linked needs.
Prefer reductions first, and document why residual emissions are being addressed with credits.
Track Supervisory Body decisions on methodologies and removals, since these set what counts as high quality.
Where Csquare fits
Csquare helps Indian companies work out which credits fit which purpose, vet project quality, and build a defensible sourcing plan as new standards emerge. If you want a view on how Article 6.4 should shape your 2027 carbon strategy, get in touch with our team.
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