The International Air Transport Association has launched a new alliance aimed at increasing the supply of aviation carbon credits ahead of stricter international emissions rules due to take effect from 2027.
The new Supporting Alliance for CORSIA EEU Supply brings together airlines, governments and carbon market stakeholders to help make 225-250 million CORSIA Eligible Emissions Units available by spring 2027. The initiative focuses on easing bottlenecks that currently limit the transfer and use of carbon credits under the global aviation emissions framework known as CORSIA.
IATA said the alliance will pool expertise and resources to support countries implementing Article 6.2 of the Paris Agreement and to improve access to international carbon markets. Assistance will also help governments manage reporting processes and authorize the use of domestic emissions units under CORSIA.
“CORSIA is the only globally agreed framework to address international aviation emissions, established by ICAO and its Member States in 2016,” said Marie Owens Thomsen, Senior Vice President Sustainability and Chief Economist at IATA.
“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,” she added.
IATA estimates that CORSIA could generate between $4 billion and $5 billion in climate finance during its first phase, with the figure potentially reaching $100 billion by 2035 depending on carbon market prices.
“This will help fund climate action, support remote communities, and spur economic development,” said Marie Owens Thomsen.
The alliance is open to national governments and organizations willing to provide technical expertise and practical support. More than 32 entities joined the initiative at launch, including airlines such as AirAsia, Air France-KLM, All Nippon Airways, Austrian Airlines, Egyptair, IAG, Japan Airlines, Lufthansa Group, Pegasus Airlines, Qatar Airways, Singapore Airlines and SWISS.
CORSIA, short for the Carbon Offsetting and Reduction Scheme for International Aviation, was adopted by governments through the International Civil Aviation Organization in 2016. The framework was designed to create a single global market-based mechanism for international aviation emissions and avoid overlapping regional systems.
Offsetting requirements under CORSIA began in 2021. Airlines must demonstrate compliance at the end of each three-year period by cancelling an equivalent number of eligible emissions units.
Under the current pilot and first phases running from 2021 to 2026, only flights between countries voluntarily participating in CORSIA are subject to offsetting requirements. From 2027, the rules will expand to most international flights, although some exemptions will continue for least developed countries, small island developing states and smaller aviation markets.
IATA said the alliance’s implementation support will be provided free of charge to countries requesting assistance ahead of the first CORSIA compliance deadline in December 2027.
