Ecobiz.asia – ASEAN member states could generate up to US$8.5 billion over the next decade by supplying eligible carbon credits to the aviation sector under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), according to a new report released by Boeing, GenZero, and Abatable.
The report says the opportunity could be realized if governments across the region establish enabling policy frameworks, including issuing Letters of Authorization (LoAs) for eligible carbon projects and strengthening coordination between climate and aviation authorities.
Currently, ASEAN accounts for around 7% of the global supply of CORSIA Eligible Emission Units (CEEUs), with approximately 2.6 million credits generated from four projects in Cambodia and Laos.
According to the report, that supply could increase eightfold to 20.8 million credits within months if governments authorize an additional 54 carbon projects that already meet CORSIA requirements. The projects include 24 in Vietnam, 11 in Thailand, and eight in Myanmar.
Letters of Authorization are required for governments to approve the use of carbon credits under CORSIA while confirming that the associated emission reductions will not also be counted toward their own national climate targets under the Paris Agreement.
Looking further ahead, the report estimates ASEAN could supply an additional 302 million carbon credits if around 100 new carbon projects are developed and prioritized for CORSIA eligibility. Such expansion could support around 32,000 jobs across the region over the next decade while reducing compliance costs for airlines.
The report also finds that ASEAN airlines could meet all of their carbon offset obligations during CORSIA’s First Phase using credits generated within the region, provided governments unlock supply from the currently eligible projects. Meeting demand during the scheme’s Second Phase, however, would require accelerating the development of additional carbon projects.
To unlock the market, the report recommends that governments map potential CORSIA credit supply against their Nationally Determined Contributions (NDCs), strengthen coordination among environment, transport, and aviation agencies, prioritize sectors suitable for CORSIA investment, pilot the issuance of Letters of Authorization, and enhance regional cooperation among ASEAN member states.
The report also urges airlines to develop long-term carbon credit procurement strategies, conduct pilot transactions, diversify their credit portfolios, and strengthen engagement with governments in countries hosting CORSIA-eligible projects.
Several ASEAN carriers have already begun preparing for compliance. Earlier this year, Singapore Airlines and its subsidiary Scoot retired 150,000 CORSIA Eligible Emission Units to meet compliance requirements, while Malaysia Aviation Group has completed pilot purchases and established a carbon credit procurement framework.
Allison Melia, Boeing’s Vice President of Sustainability, said carbon credits would remain an important component of aviation’s decarbonization strategy alongside fleet modernization, operational efficiency, and the adoption of sustainable aviation fuel (SAF).
She said ASEAN has the potential to become a globally significant supplier of high-quality carbon credits for CORSIA if governments provide clear policy direction and work closely with industry to strengthen market credibility.
GenZero Chief Executive Officer Frederick Teo said ASEAN has already made significant progress in developing Article 6 and NDC frameworks, providing a strong foundation for CORSIA implementation. However, he noted that the aviation scheme involves different regulatory requirements and stakeholders, making closer coordination between environment ministries, transport authorities, airlines, and civil aviation agencies essential.
Abatable Chief Executive Officer and Co-founder Valerio Magliulo said ASEAN holds one of the world’s largest untapped sources of potential CORSIA supply, representing hundreds of millions of carbon credits that could generate billions of dollars in economic value while supporting international aviation’s decarbonization goals.
ASEAN Deputy Secretary-General for the ASEAN Economic Community Satvinder Singh said stronger regional cooperation would be essential to unlock these opportunities while supporting both sustainable aviation and national climate commitments. He added that better coordination among transport, environment, and other relevant authorities would help accelerate the region’s transition toward lower-carbon aviation. ***
