ICAO joins Supporting Alliance for CORSIA Carbon Credit Supply
The International Air Transport Association (IATA) has announced that the International Civil Aviation Organization (ICAO) has joined the Supporting Alliance for CORSIA Eligible Emissions Unit (EEU) Supply, a coalition of more than 80 stakeholders working to improve the availability of carbon credits for the aviation sector.
Why It Matters
- The Alliance focuses on addressing obstacles that limit the supply of CORSIA-eligible carbon credits (EEUs), which airlines can use to meet emissions obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Its work includes:
- Supporting countries in authorizing emissions units for CORSIA use.
- Preventing double counting of emissions reductions.
- Helping governments align CORSIA requirements with their climate commitments under the Paris Agreement.
- Providing technical expertise on carbon markets and Article 6.2 implementation.
Progress and Remaining Challenges
- Recent progress shows growing momentum in carbon credit availability:
- As of August 2026, 42 CORSIA-compatible Letters of Authorization covered approximately 72 million EEUs.
- This compares with 40 million EEUs at the beginning of 2026.
- However, a significant shortfall remains:
- The first CORSIA compliance cycle is expected to require 200 to 250 million EEUs, meaning current supply is still well below anticipated demand.
Industry and Regulatory Perspectives
- Marie Owens Thomsen, IATA's Senior Vice President Sustainability and Chief Economist, said the increase in EEU supply is encouraging but emphasized that growth must accelerate to ensure CORSIA can fulfill its role as the aviation industry's globally agreed emissions framework.
- Tetsuya Tanaka, ICAO Deputy Director for Environment, said ICAO's participation in the Alliance will strengthen collaboration among governments, airlines, and carbon market stakeholders to help ensure sufficient EEU availability and support successful CORSIA implementation.
Key Takeaway
ICAO's entry into the Alliance represents a significant step toward expanding the supply of approved carbon credits needed for aviation's global carbon-offsetting framework. While progress is being made, substantial work remains to close the gap between current EEU availability and the volumes required for upcoming CORSIA compliance obligations.
