The UN body overseeing the Paris Agreement's carbon market has adopted a new methodology to cut nitrous oxide (N₂O) emissions from nitric acid production, expanding the scope of climate action under the Paris Agreement Crediting Mechanism.
Agreed at a meeting in Bonn this week, the Article 6.4 Supervisory Body decision enables projects that reduce emissions from nitric acid plants to generate carbon credits under the Paris Agreement.
Nitrous oxide is one of the most potent greenhouse gases, with a warming effect far stronger than carbon dioxide. Its levels have risen sharply in recent decades, increasing by around 40 per cent since 1980, and it is widely covered in national climate plans, with 97 per cent of recent Nationally Determined Contributions (NDCs) including it.
Nitric acid production is a significant industrial source of these emissions. Around 400 to 600 plants operate globally, producing roughly 70 million tonnes of nitric acid each year, much of it used in fertiliser production. Many of these plants are in developing countries, where abatement technologies are not yet widely in place. The new methodology enables proven technologies to be deployed at scale in these facilities, turning climate commitments into measurable emission reductions.
Delivering results under the Paris Agreement Crediting Mechanism
The adoption reflects how the UN carbon market is moving into delivery, expanding coverage to new sectors and enabling real emission reductions on the ground.
"This is a strong step forward in delivering real emission reductions through the mechanism," said Mkhuthazi Steleki, Chair of the Supervisory Body. "We are expanding into sectors where proven solutions exist and where action can have an immediate impact. This is part of a broader push to deliver practical results this year."
"We are delivering on our commitment to implementation. With each methodology adopted, there are more tools in the toolbox for high integrity climate action" said Jacqui Ruesga, Vice-Chair of the Supervisory Body.
In addition to the N₂O methodology, the Supervisory Body also adopted other key methodological products to enhance implementation:
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A methodological tool on lock-in risk, helping ensure that activities avoid "locking in" older, high-emitting technologies or practices that are not aligned with long-term climate goals.
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A revised standard on the demonstration of additionality, strengthening how projects show they go beyond business-as-usual.
These elements are central to ensuring that emission reductions are credible, robust and aligned with the goals of the Paris Agreement.
Scaling up delivery
With each new methodology, the Paris Agreement Crediting Mechanism is expanding its ability to deliver emission reductions across more sectors and regions.
Work is advancing on additional methodologies through the Methodological Expert Panel, with further proposals expected at meetings later this year. Upcoming work includes approaches that could unlock mitigation in areas such as clean cooking and household energy use, sectors with strong potential for both climate impact and sustainable development benefits.
Further progress will see the Sustainable Development tool continue to be strengthened through the agreed regular revision process, while the mechanism's infrastructure continues to take shape, including ongoing development of the mechanism registry to enable the issuance, tracking and use of carbon credits.
Together, these outcomes reaffirm that the mechanism is taking shape as a practical tool to support countries and companies in delivering real, measurable emission reductions at scale.
