The current opportunity
The first compliance window for the Carbon Offsetting and Reduction Scheme for International Aviation begins in twenty twenty four. IATA estimates airlines will require up to two hundred thirty six million eligible emissions units during the initial three year phase. At the moment only fifteen point eight million credits are formally approved, leaving a sizeable gap that could stall momentum.
How Letters of Authorisation unlock supply
Under Article Six of the Paris Agreement each host nation issues a Letter of Authorisation confirming that a carbon reduction project may transfer its credits for use in CORSIA. The letter also commits the country to apply a corresponding adjustment so that climate benefits are counted only once. By signing these straightforward documents governments create immediate high quality supply without new legislation or spending.
Non obvious insight
Many developing nations already host forestry, renewable and waste management projects generating certified reductions, yet those projects struggle to monetise future volumes. A rapid Letter of Authorisation provides them with a new revenue pathway that can keep local jobs alive while airlines obtain cost effective compliance options. Thus one administrative signature can simultaneously support rural economies and global decarbonisation.
Tools ready for deployment
· IATA has published step by step templates that simplify national approval workflows.
· Workshops and digital platforms are available to assist officials with quality checks.
· Project developers have committed to allocate fresh units the moment letters are issued.
Positive ripple effects
A robust transparent market for CORSIA eligible units will encourage further investment in mitigation projects, lower airline compliance costs and showcase aviation cooperation ahead of the next ICAO assembly.
Conclusion
Prompt governmental action on Letters of Authorisation can transform a potential credit shortage into an economic and environmental win. By enabling existing projects to serve airlines, states can amplify their climate leadership with a simple administrative step.