IATA Launches Alliance to Resolve CORSIA Credit Shortage

The aviation sector is working to resolve a significant credit supply gap ahead of the mandatory expansion of CORSIA, the international scheme that requires airlines to compensate for emissions growth above 2019 levels.

Aerial view of a busy international airport with multiple aircraft. AI generated picture.

The International Air Transport Association (IATA) has established the Supporting Alliance for CORSIA EEU Supply, with a target of making between 225 and 250 million CORSIA Eligible Emissions Units (EEUs) available by spring 2027. The group currently has more than 32 members spanning the aviation industry, carbon markets, and national governments, and remains open to new participants prepared to commit meaningful resources to the effort.

CORSIA—the Carbon Offsetting and Reduction Scheme for International Aviation—was agreed upon through the United Nations’ International Civil Aviation Organization (ICAO) in 2016 and entered its pilot phase in 2021. A voluntary participation phase runs through 2026, after which the scheme extends to cover all international flights globally, with limited exemptions for the smallest and least developed nations.

The supply gap stems from the authorisation requirements of Article 6.2 of the Paris Agreement, which oblige host countries to formally approve the transfer of carbon credits into the CORSIA system before they become eligible for compliance use. ‘Credits must be transferred between these systems to avoid double-counting, which has become an important bottleneck,’ said Marie Owens Thomsen, Senior Vice President Sustainability and Chief Economist at IATA.

The potential scale of finance linked to CORSIA is significant. The first compliance phase alone is projected to channel between $4 and $5 billion into environmental and community programmes, with estimates reaching $100 billion by 2035 depending on market conditions. The Alliance will provide pro bono technical assistance to host countries to accelerate the Article 6.2 process, with support tailored to each government’s current stage.

Founding airline members of the Alliance include Lufthansa Group, Air France-KLM, International Airlines Group (IAG), All Nippon Airways (ANA), and Qatar Airways.