South Africa could miss out on billions of dollars in climate finance from the aviation sector's carbon offset program, Corsia. The country has not yet set up a mechanism to trade Eligible Emissions Units (EEUs), while other African nations like Tanzania and Rwanda have already made credits available. Airlines globally are expected to buy up to 200 million EEUs by 2028, valued at $4-5 billion. The National Treasury published a consultation paper in late 2025 proposing reforms to modernize carbon credit infrastructure and stimulate investment in low-carbon projects. But without a local certification system and clear regulations, South African airlines cannot participate in the market. Iata estimates Africa could supply 57.6 million EEUs, but only if countries act quickly to establish trading frameworks. The Corsia scheme makes offsetting mandatory for all countries from 2027. South Africa is currently exempt as a developing nation but must comply with monitoring and reporting rules. The new Supporting Alliance for Corsia EEU Supply aims to resolve bottlenecks and boost credit availability to 225-250 million units in 2027.
