IATA Launches Alliance to Boost CORSIA Carbon Credit Supply by 2027

IATA launches supporting alliance for CORSIA EEU supply

New Delhi, June 7

According to an official release, the alliance seeks to pool the participating organisations' resources and target bottlenecks with tailored, practical, and pragmatic implementation assistance.

Facilitate and enable countries' management of the interface between their Nationally Determined Contributions under the UNFCCC and the process required to make carbon credits available for use under CORSIA. Improve countries' access to carbon markets and related resources.

CORSIA is the only globally agreed framework to address international aviation emissions, established by ICAO and its Member States in 2016. States, however, have their own obligations under the Paris Agreement and the UNFCCC. Credits must be transferred between these systems to avoid double-counting, which has become an important bottleneck. The Supporting Alliance will provide implementation assistance to clear this and other bottlenecks that prevent credits from coming to the CORSIA market, the release stated.

"It should be noted that CORSIA will likely generate $4-5 billion of climate finance in the first phase, and potentially $100 billion by 2035, depending on market prices. This will help fund climate action, support remote communities, and spur economic development. We welcome all carbon market stakeholders and related organisations to join forces in the Supporting Alliance to help CORSIA realise its potential social, economic and climate benefits," said Marie Owens Thomsen, IATA's Senior Vice President Sustainability and Chief Economist.

The Alliance is open to all organisations and national governments willing to commit expertise and practical resources and to make a significant contribution to the development of CORSIA EEU supply and the robust implementation of CORSIA and Article 6.2 guidance of the Paris Agreement, the release highlighted.

The initial Alliance membership encompasses over 32 entities, including the following airlines: Air Asia, Air France-KLM, All Nippon Airways (ANA), Austrian Airlines, China Airlines, Corsair, Egyptair, IAG, Japan Airlines, KM Malta Airlines, Lufthansa Group, Pegasus Airlines, Qatar Airways, Scoot, Singapore Airlines, and SWISS.

The host country implementation assistance will importantly involve recognised Article 6, and CORSIA experts in the Supporting Alliance, and it will provide pro bono support to countries that want to authorise the use of domestic emissions units under CORSIA.

This support will facilitate the process ahead of the first CORSIA compliance deadline in December 2027 and help countries manage reporting and review processes on an ongoing basis, the release noted.

Assistance is provided to countries upon request and tailored to their specific needs and their progress in implementing Article 6.2 under the Paris Agreement.

— ANI