The International Air Transport Association (IATA) plans to hold regular procurement events in 2025 for airlines to purchase Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Emissions Units (EEUs).
\nThe first procurement event saw 32 airlines participate and 11 airlines purchase CORSIA Phase 1 EEUs from the Government of Guyana.
\nThis was the first large-scale purchase of CORSIA Phase 1 EEUs by airlines. The CORSIA EEUs purchased were Jurisdictional REDD+ ART Trees Guyana credits, which remain the only CORSIA EEUs available, and sold for $21.70 \/tonne as part of the fixed-price auction\/offering. These will be useable by airlines in fulfilling their CORSIA Phase 1 offsetting obligations covering traffic for the period 2024-2026. The EEUs must be canceled by 31 January 2028.
\nThe first procurement event was open to airlines only and ran from 28 October to 29 November 2024, and was supported by the Government of Guyana, Mercuria, and Xpansiv. Xpansiv operates, with IATA, the Aviation Carbon Exchange (ACE) which facilitated the sale.
\nIATA, via the ACE, intends to host quarterly CORSIA EEUs procurement events for airlines in 2025, with the next event being held alongside Guyana and Mercuria in Q1.
\nThose involved with the first procurement event shared various perspectives:
\n\u201cIATA\u2019s procurement event provided an optimal transparent and auditable process for Pegasus to purchase credits to fulfill our obligations under CORSIA. We were pleased to acquire EEUs to support the market for high-integrity carbon credits that are essential for airlines to meet the ambitious emissions goals set in CORSIA,\u201d said Barbaros Kubato\u011flu, Pegasus Chief Financial Officer.
\n\u201cThe success of the first procurement event demonstrated the airline industry\u2019s commitment to both the offsetting and reduction aspects of CORSIA, which is essential to the sector\u2019s decarbonisation goals. To serve the significant projected future demand for EEUs from airlines we look forward to holding similar events in 2025 and beyond. The major challenge is availability of credits to meet demand. The solution rests on the CORSIA agreement which obligates countries to make credits available. Other governments should follow Guyana\u2019s strong lead,\u201d said Marie Owens Thomsen, IATA\u2019s Senior Vice President Sustainability and Chief Economist.
\n\u201cThis event was successful because the participating airlines showed that they are willing to pay fair price for the countries and communities doing the hard work of protecting forests and mitigating climate change. For too long, this price signal was missing. Valuing nature in this way marks an important step toward recognising the true value of natural ecosystems for sustainable development. If this is sustained, we could finally see real progress on ambitious climate action through financing forests in a way that benefits buyers, sellers and the entire world,\u201d said Bharrat Jagdeo, Vice President of the Co-operative Republic of Guyana.
\n\u201cMercuria\u2019s mission is to leverage the power of markets to direct funds to vital carbon offset projects and enable companies to meet their emissions targets. The procurement event sent an important signal that EEUs command a premium price, which should encourage greater supply to flow to CORSIA rather than other sources of offset demand,\u201d said James Cooper, Head of Origination EMEA, Environmental Products, Mercuria.
\n\u201cSince 2020 we have worked with IATA to develop a secure marketplace and infrastructure enabling airlines to transact high-quality carbon credits, including EEUs to fulfill CORSIA obligations. We were excited by the enthusiastic uptake of the first procurement event last year and are encouraged by the growing number of airlines joining ACE to participate in future events,\u201d said John Melby, CEO, Xpansiv. -Trade Arabia News Service<\/p>\n","protected":false},"excerpt":{"rendered":"
The International Air Transport Association (IATA) plans to hold regular procurement events in 2025 for airlines to purchase Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Emissions Units (EEUs). The first procurement event saw 32 airlines participate and 11 airlines purchase CORSIA Phase 1 EEUs from the Government of Guyana. This was the …<\/p>\n","protected":false},"author":1,"featured_media":19443,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpscppro_dont_share_socialmedia":null,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"","_instagram_share_type":"default","_medium_share_type":"default","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":null,"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[98,102],"tags":[],"class_list":["post-19680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies","category-featured-en"],"yoast_head":"\n