CORSIA carbon credits: Will airlines land on quality?
The size of the carbon credit market under the CORSIA first phase is likely to top USD 2 billion, multiple times the current annual transaction value of the entire voluntary carbon market (VCM).
There are already over 200 million available credits which are “in-scope” for the CORSIA first phase; cookstove credits have the potential to dominate the market.
Credits that are in-scope for use in the CORSIA first phase range significantly in quality, from ‘AA’ to ‘D’ on the BeZero Carbon rating scale: airlines run the risk of procuring credits which have a low likelihood of delivering their carbon claim.
Airlines should account for the performance of credits in their long-term procurement strategies for CORSIA credits, using ratings as their guide.
Contents
What is CORSIA?
Who’s involved in CORSIA?
What’s the size of the market for CORSIA carbon credits?
CORSIA first phase credits - what’s in and what’s out?
Which project sectors could CORSIA first phase credits come from?
What do we know about the quality of CORSIA first phase credits?
Conclusion