CORSIA​

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is a global framework developed by the International Civil Aviation Organization (ICAO) to address CO₂ emissions from international flights. It requires airlines to offset emissions above an established baseline by purchasing approved carbon credits or using eligible low-carbon fuels.

All airlines operating international routes between participating ICAO member states must report emissions and, from Phase 1 onward, compensate for those exceeding 85% of 2019 levels. Participation expands further in Phase 2, starting in 2027.

ICAO set the baseline at 85% of 2019 emissions, following adjustments made after the COVID-19 traffic collapse. This baseline defines the level above which offset obligations apply until 2035.

Only carbon credits issued under ICAO-approved programs that meet strict environmental integrity standards qualify. They must demonstrate additionality, permanence, and be backed by corresponding adjustments under Article 6 of the Paris Agreement to prevent double counting.

CORSIA credits are compliance-grade instruments approved under ICAO’s eligibility framework, while voluntary market credits are used for non-regulated climate commitments. The CORSIA system imposes higher scrutiny on program approval, host-country authorization, and registry transparency.

The key constraints are limited supply of fully eligible credits, delays in Article 6 authorizations, and uneven readiness among host countries. These factors increase price uncertainty and procurement timing risk for airlines.

Fastmarkets provides weekly CORSIA Phase 1 spot assessments, price forecasts to 2030, and visibility into eligible supply and program approvals. Airlines, fuel buyers, and investors use this data to benchmark procurement costs, anticipate supply constraints, and manage financial exposure.

Yes. While distinct from regional systems like the EU ETS or CBAM, CORSIA draws from the same global credit pool and is shaped by Article 6 of the Paris Agreement. Over time, credit pricing and eligibility trends across these systems are expected to converge.

2024–2026: Phase 1 – limited to participating states and approved credits.​ 2027–2035: Phase 2 – expanded participation and potentially tighter baselines.​ Ongoing updates to ICAO-approved programs and Article 6 guidance will define future supply and compliance costs.

All CORSIA-related benchmarks, forecasts, and program updates are available through Fastmarkets Carbon, delivered via web platform, desktop, Excel, and API integration.