The International Air Transport Association (IATA) has formed a new coalition aimed at resolving a growing shortage of carbon credits available under the aviation sector’s international emissions offset scheme, CORSIA, warning that billions of dollars in climate finance are at risk if the bottlenecks persist.
IATA announced Friday at its annual general meeting in Rio de Janeiro the launch of the Supporting Alliance for CORSIA EEU Supply, a group whose stated goal is to make 225 to 250 million CORSIA Eligible Emissions Units (EEUs) available by spring 2027.
The alliance currently has more than 32 members—including airlines, governments, and carbon market stakeholders—and is open to all organizations and national governments “willing to commit expertise and practical resources and to make a significant contribution” to this shared goal, IATA said.
CORSIA, the Carbon Offsetting and Reduction Scheme for International Aviation, was agreed upon by governments through the United Nations (UN) International Civil Aviation Organization (ICAO) in 2016 and requires international carriers to offset emissions growth above 2019 levels.
The scheme has been rolled out in phases, with the pilot running from 2021 to 2024 and the first phase with voluntary participation finalizing in 2026. From 2027, it will extend to cover all international flights, with exemptions for the smallest and least developed nations.
The central obstacle the Alliance is designed to address is the authorization process under Article 6.2 of the Paris Agreement, which requires host countries to formally approve the transfer of carbon credits into the CORSIA system.
“Credits must be transferred between these systems to avoid double-counting, which has become an important bottleneck,” said Marie Owens Thomsen, Senior Vice President Sustainability and Chief Economist at IATA.
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The scheme could generate $4–$5 billion in climate finance during its first compliance phase alone, and potentially $100 billion by 2035, depending on market prices—revenue she said would support climate action, remote communities, and economic development.
The Supporting Alliance will offer pro bono technical support to host countries on request, tailored to each government’s stage of implementing its Paris Agreement obligations. Founding airline members include Lufthansa Group, Air France-KLM, International Airlines Group (IAG), All Nippon Airways (ANA), and Qatar Airways, among others.
Read more: New EU Draft Rules Could Disqualify Almost All Existing CORSIA Phase 1 Credits
