The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) aims to gradually increase the responsibility of individual operators in offsetting their carbon emissions. The baseline, agreed upon for the 2021-2023 period, is set at 2019 emission levels. CORSIA’s Phase 1 (2024-2016) establishes a baseline for aeroplane operators equal to 85% of 2019 emissions. The scheme will then become mandatory for all participating air operators between 2026 and 2035.
While initially intended to aid airlines in meeting climate goals, CORSIA credits gained further validation when the Voluntary Carbon Market Integrity Initiative (VCMI) accepted them earlier this year. Subsequently, the Integrity Council (ICVCM) determined that programs eligible under CORSIA also meet the first version of the Assessment Framework for the Core Carbon Principles (CCP) label, subject to additional requirements. Both recognitions, discussed in our analysis (here), contribute to an increased demand for these credits, which has influenced their prices.
Supply funnel Most of the exchanges active in the VCM have CORSIA-eligible benchmark contracts aligned with the Pilot Phase requirements, as is the case with CBL and the Global Emission Offset (GEO), and between ACX and ACX Eligible Tonnes (CET). IATA Avi…
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