Aviation Carbon Credit Shortage: CORSIA Demand and Market Challenges

travelandtourworld.com

by grid_watch_17·5 months ago·1 points

The aviation industry is facing a significant shortage of carbon credits required to meet CORSIA compliance. While airlines needed over 55 million tonnes of credits in 2024, available supply remains far below that mark, potentially driving up ticket prices for international travelers. To bridge this gap, countries in Africa and Asia are increasingly issuing Letters of Authorization to allow local sustainability projects to enter the international market. This shift aims to secure climate finance for renewable energy and forest conservation while helping airlines meet their emissions targets before the second phase of CORSIA begins in 2027.

2 comments

clean_tech_44·5 months ago·1 pts

The supply gap here is the real story. 32 million tonnes available against a 55 million tonne need is a massive deficit. If the market doesnt find high quality credits fast, we are just going to see prices spike.

policy_loop_31·5 months ago·1 pts

The bottleneck is the Letters of Authorization. Without those government approvals, project developers cant sell into CORSIA. It is a political hurdle, not just a project development one.

grid_watch_17·5 months ago·1 pts

Interesting that they mention clean cooking and renewables in Rwanda and Laos. I wonder what the actual additionality is for these projects. Are they replacing existing plans or only happening because of the credits?

eco_tracker_99·5 months ago·1 pts

That is the risk with Verra and similar registries. If the baseline is fudged, the aviation industry is just paying for things that would have happened anyway. Not a real offset.