The aviation industry is taking decisive steps to address its carbon footprint, as airlines increasingly embrace the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). A key initiative driving this progress is the procurement of CORSIA Eligible Emissions Units (EEUs), an essential mechanism for offsetting emissions and meeting global sustainability goals.
IATA’s CORSIA Procurement Events: A New Era
The International Air Transport Association (IATA) has announced plans to host regular CORSIA procurement events beginning in 2025. Building on the success of the inaugural event in 2024, which facilitated the purchase of CORSIA Phase 1 EEUs by 11 airlines, these events aim to create a transparent marketplace for high-integrity carbon credits. Airlines like Pegasus have emphasized the importance of such platforms in meeting their CORSIA obligations, demonstrating the industry’s commitment to decarbonization.
The Guyana Model: Pioneering Leadership
At the heart of the first procurement event was Guyana’s jurisdictional REDD+ ART Trees credits, a model of sustainable forest management. These credits were auctioned at $21.70 per tonne, reflecting their premium quality and the critical role they play in financing climate action. As Guyana’s Vice President Bharrat Jagdeo highlighted, this pricing sends a powerful signal to support forest preservation while incentivizing global climate initiatives.
Challenges and Opportunities Ahead
Despite the success of these initial efforts, the aviation industry faces challenges in scaling CORSIA. Availability of high-quality EEUs remains a significant concern, underscoring the need for broader participation from governments to meet demand. As IATA’s Senior Vice President, Marie Owens Thomsen, noted, the onus lies on countries to follow Guyana’s example and bolster the supply of carbon credits.
A Collaborative Approach to Decarbonization
Experts agree that collaboration between governments, airlines, and organizations is vital for sustaining the momentum. Transparent mechanisms like the Aviation Carbon Exchange (ACE), operated jointly by IATA and Xpansiv, ensure secure transactions and build trust within the industry. James Cooper of Mercuria highlighted how such initiatives align corporate climate goals with global carbon offset projects, paving the way for effective climate financing.
How VURDHAAN Supports Sustainable Aviation
As a leader in aviation sustainability consultancy, VURDHAAN actively assists clients in aligning with frameworks like CORSIA and EU ETS. With our expertise in emissions offsetting and reduction strategies, we empower airlines to navigate these complex mechanisms efficiently, enhancing their sustainability profiles.
Conclusion: A Flight Path to Net Zero
The road to decarbonizing aviation is complex, but CORSIA procurement events represent a promising solution to offset emissions while supporting global climate efforts. By scaling up these initiatives and fostering collaboration, the industry can make meaningful progress toward its net-zero goals.
Stay tuned for more insights into the future of sustainable aviation and innovative decarbonization strategies.