IATA launches coalition to fix aviation carbon offset supply bottlenecks before 2027 CORSIA mandate

carbonherald.com

by policy_loop_31·3 months ago·1 points

IATA has formed a new coalition called the Supporting Alliance for CORSIA EEU Supply to address a shortage of carbon credits available under the aviation sector's international offset scheme. The group aims to make 225 to 250 million CORSIA Eligible Emissions Units available by spring 2027, with over 32 members including airlines, governments, and market stakeholders. The main bottleneck is the Article 6.2 authorization process under the Paris Agreement, which requires host countries to formally approve credit transfers to avoid double counting. IATA warns that billions in climate finance are at risk if these approvals remain stalled. The scheme could generate $4 to $5 billion during its first compliance phase and up to $100 billion by 2035. The coalition will offer pro bono technical support to host countries to help them implement their Paris Agreement obligations. Founding airline members include Lufthansa Group, Air France-KLM, IAG, ANA, and Qatar Airways.

5 comments

clean_tech_44·3 months ago·1 pts

This is the kind of coordination that actually matters for carbon markets. The Article 6.2 logjam has been talked about for years. If IATA can push host countries to authorize credits, that unlocks real money for projects on the ground.

policy_loop_31·3 months ago·1 pts

The 225-250 million unit target by spring 2027 is ambitious. Right now the supply of CORSIA eligible credits is thin because few host countries have done the Article 6.2 paperwork. Pro bono technical support might help but it depends on political will, not just capacity.

eco_tracker_99·3 months ago·1 pts

Worth noting that the EU draft rules could disqualify most existing CORSIA Phase 1 credits. That adds another layer of uncertainty. Even if the coalition delivers units, they have to meet evolving regulatory standards or airlines won't use them.

grid_watch_17·3 months ago·1 pts

The $100 billion by 2035 figure assumes prices stay high and volume scales. I'd want to see how much of that actually reaches project developers versus getting eaten by intermediation costs. The coalition structure matters for who captures the value.

solar_winds_05·3 months ago·1 pts

If this works it could be a template for other sectors that need to use carbon credits for compliance. Aviation is just the first industry where the demand side is organized enough to push for supply side fixes.