The Climate Action Center of Excellence (CACE), a Qatar-based organization established by the Gulf Organisation for Research and Development (GORD), has completed its first auction of carbon credits carrying a CORSIA compliance period one (CP1) label, marking a milestone in the development of market infrastructure for the aviation sector’s carbon offsetting scheme.
The auction, conducted on behalf of project developer SIPCO and powered by trading platform Emsurge, offered credits from SIPCO’s Verra-certified Cambodian Water Purifiers Project and closed above a floor price of $14.00 per tonne of carbon dioxide equivalent (CO2e), attracting multiple buyers.
Before the auction, CACE conducted extensive due diligence on both the underlying project and the Letter of Authorization underpinning the credits, providing buyers with independent assurance needed to participate with confidence.
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), established by the International Civil Aviation Organization (ICAO), is designed to address rising emissions from international flights through market-based measures.
“By demonstrating that project-specific CORSIA credits can attract competitive demand in a transparent, auction-based format, CACE and its partners are proving that the infrastructure for a global liquid market is ready,” Dr. Yousef Alhorr, Founding Chairman of CACE and GORD, said in a comment.
CACE Director Dr. Alexandra Soezer described the result as a positive outcome for SIPCO, noting the months of work that went into building an initiative aimed at improving access to credits and price transparency for the market.
Relevant: Verra Updates Article 6 And CORSIA Label Guidance, Releases New Tool For Credit Buyers
SIPCO has committed to regular auctions, with the next scheduled for early next month. CACE will continue to provide independent oversight and due diligence for each round, with the goal of enabling a credible and liquid secondary market for CORSIA CP1 credits to develop over time.
SIPCO’s Cambodian project, alongside Cambodia’s active engagement in Article 6, is helping position the country at the forefront of Paris Agreement carbon market implementation.
Read more: First Major CORSIA Credit Retirement Signals Market Shift, Gold Standard Says
