Background
Since 2021 global airlines have prepared for the Carbon Offsetting and Reduction Scheme for International Aviation, the worldwide mechanism created by the International Civil Aviation Organization. At the Asia Climate Summit in Bangkok in July 2025 senior carbon market specialists reported that grey areas around eligibility and accounting are finally shrinking. Singapore, the European Union, Japan and Qatar have already signalled early enforcement, giving the market stronger demand signals for CORSIA eligible credits. Speakers explained that the Article Six rulebook now guarantees that once a corresponding adjustment is issued it cannot be revoked, increasing confidence among project developers.
Key messages from the summit
· Supply pipelines are expanding, with forecasts of up to two hundred seventy four million eligible credits between 2027 and 2030, comfortably above conservative demand projections.
· Price discovery is progressing, recent auctions cleared near twenty two dollars per metric ton, well below earlier estimates.
· Host countries are issuing Letters of Authorization more quickly, cutting approval time from several months to only weeks in many cases.
Non-obvious insight
A practical takeaway emerged: airlines can reduce future compliance cost swings by arranging forward purchase contracts that activate only after credits receive final CORSIA approval. This built in safeguard lowers counterparty risk while locking todays prices, a tactic already adopted by Qantas and a handful of Asian peers yet still overlooked by many global competitors.
Digital enablement
Delegates also reviewed new Article Six registries that apply blockchain style technology to track ownership in real time. Early adopters could trim monitoring reporting and verification expenses by up to thirty percent, releasing funds for sustainable aviation fuel investments and other decarbonisation projects.
Conclusion
Growing regulatory clarity, expanding supply and smarter contracting tools are transforming the CORSIA scheme from perceived burden into strategic opportunity. Airlines that engage early stand to cap costs, unlock climate finance and accelerate the journey toward net zero flight.