ICAO joins IATA alliance to address CORSIA credit supply shortfall

The International Civil Aviation Organization (ICAO) has joined an IATA-led alliance seeking to increase the supply of eligible emissions units (EEUs) for airlines under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The initiative, announced in Brussels, brings together more than 80 stakeholders as the sector prepares for the scheme’s first compliance cycle in 2027, which is expected to require 200-250 million EEUs.

The Supporting Alliance for CORSIA EEU Supply is working to help countries authorise emissions units for use under CORSIA while preventing double counting against national climate commitments under the Paris Agreement. It also provides technical assistance for participation in international carbon markets and implementation of Article 6.2 of the agreement.

As of August, 42 CORSIA-compatible letters of authorisation covered 72 million EEUs, compared with 40 million at the start of 2026. The increase remains well below the volume expected to be needed for the initial compliance cycle, potentially intensifying competition among airlines for eligible units.

ICAO’s direct participation adds the organisation responsible for CORSIA’s framework to an initiative led by the International Air Transport Association. ICAO Deputy Director for Environment Tetsuya Tanaka said the cooperation should help secure sufficient EEUs and support the aviation sector’s transition towards carbon-neutral growth. The alliance has not provided a timetable for closing the projected supply gap or identified specific projects that will deliver additional units.