Myanmar cookstove carbon credit project involving Korean firms criticized for ignoring junta's abuses

A carbon credit project in Myanmar, involving South Korean companies like SK Group and Korea Electric Power Corporation, is facing criticism for proceeding without addressing the human rights violations perpetrated by the ruling military junta. The project's focus on distributing efficient cookstoves to generate carbon credits is being scrutinized for its environmental, social, and governance (ESG) implications.

A report released by the environmental group Plan 1.5, in collaboration with the Myanmar Policy Institute and Global Forest Coalition, titled 'Controversial Carbon Credits – Myanmar, Anti-Humanitarian Crimes, and the Credibility Crisis Facing the UN's High Integrity Carbon Market,' details these concerns. The report was presented at the 64th Subsidiary Body meeting of the UNFCCC in Bonn.

The project, led by the Korean NGO Climate Change Center since 2021, aims to reduce greenhouse gas emissions by promoting the use of high-efficiency cookstoves in Myanmar households, thereby decreasing reliance on firewood. Participating Korean companies include 12 affiliates of SK Group, Korea Electric Power Corporation, and Korea South-East Power Co.

According to the report, the cookstoves have been distributed primarily in the Sagaing, Magway, and Mandalay regions, areas that have experienced intense military crackdowns since the 2021 coup. During the period for carbon credit issuance (January 2021 to May 2022), these regions saw 1,153 political conflicts and physical attacks, with 298 directly attributed to military actions against civilians. The military has also been accused of destroying public facilities, such as setting fire to a middle school in Chaung Oo village in Sagaing.

“

The data used by the Myanmar military junta to justify the issuance of carbon credits in the Sagaing region is unverifiable and highly likely to be false.

The report further points to an increase in gender-based violence, including sexual violence, in Sagaing and Magway following the coup. It argues that the project's structure, which relies on women's unpaid domestic labor for emission reductions, benefits project operators and investing companies through carbon credit sales, rather than the women using the cookstoves, despite promotional claims. Concerns have also been raised about the lack of human rights impact assessments and the project's continuation under military cooperation without subsequent measures. The local implementing agency, the Dry Land Greening Department, operates under the military-controlled Ministry of Natural Resources and Environmental Conservation.

Verification of carbon reduction achievements has also been questioned. The Climate Change Center reportedly did not conduct on-site inspections for verification before reporting to the UNFCCC, relying instead on remote interviews. A previous report by Plan 1.5 indicated that the effectiveness of cookstove projects involving Korean companies was inflated by an average of 18.3 times.

Jau Tsaing, director of the Myanmar Policy Institute, stated, “The data used by the Myanmar military junta to justify the issuance of carbon credits in the Sagaing region is unverifiable and highly likely to be false.” He urged an immediate halt to credit transfers until neutral, conflict-sensitive audits can be conducted. Han Soo-yeon, a policy activist at Plan 1.5, described the project as unsuitable from multiple perspectives, including human rights, gender equality, and environmental integrity. She called for the Ministry of Climate, Energy and Environment to revise regulations to prevent low-quality, ESG-problematic credits from being used for corporate compliance and national emission reduction targets.

“

This project can be evaluated as an unqualified project in terms of human rights, gender equality, and environmental integrity.