IATA launches alliance to expand CORSIA carbon market

Tashkent, Uzbekistan (UzDaily.com) — The International Air Transport Association (IATA) has announced the launch of the Supporting Alliance for CORSIA EEU Supply initiative, aimed at increasing the supply of emissions units eligible under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to between 225 million and 250 million units by spring 2027.

The new initiative brings together participants across the CORSIA ecosystem, including governments, airlines and experts, to address constraints in the carbon credit market and improve access to climate instruments for the aviation industry.

Among the alliance’s key objectives are coordinating efforts to identify and remove market bottlenecks, supporting countries in aligning their Nationally Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change with carbon credit issuance mechanisms for CORSIA, and expanding access to carbon markets and related financial instruments.

IATA said that CORSIA is the only globally agreed system for reducing emissions from international aviation, established by the International Civil Aviation Organization (ICAO) and its member states in 2016. The association also stressed the importance of preventing the double counting of carbon units under various climate mechanisms, including the Paris Agreement.

According to IATA estimates, CORSIA could generate between US$4 billion and US$5 billion in climate finance during its first phase and up to US$100 billion by 2035, depending on market conditions. The funds are intended to support climate projects, the development of remote communities and broader economic development.

The alliance is open to governments and organisations willing to support the development of the CORSIA-eligible emissions unit market and the implementation of Article 6.2 mechanisms under the Paris Agreement. More than 32 participants, including major international airlines, have already joined the initiative.

The project also provides technical support for countries seeking to authorise the use of national emissions units under CORSIA. Assistance will be provided free of charge with the involvement of experts in climate mechanisms.

The initiative is intended to prepare for the first mandatory compliance cycle, which will begin in December 2027, and to simplify reporting and verification procedures for participating countries.