ICAO Joins Alliance to Boost Carbon Credit Supply for Aviation

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Ecobiz.asia – The International Civil Aviation Organization (ICAO) has joined an alliance of more than 80 stakeholders working to accelerate the supply of eligible carbon credits for international aviation, as the sector faces a potential shortfall against an estimated demand of 200 million to 250 million Eligible Emissions Units (EEUs) for the first CORSIA compliance cycle.

The International Air Transport Association (IATA) announced ICAO’s participation at its World Sustainability Symposium, saying the move would strengthen cooperation to address bottlenecks limiting the availability of EEUs under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The Supporting Alliance for CORSIA EEU Supply focuses on practical implementation support, including helping countries navigate the processes required to authorize emissions units for use under CORSIA while preventing double counting.

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The initiative also aims to help governments align their Nationally Determined Contributions (NDCs) under the Paris Agreement with CORSIA’s authorization requirements, while providing access to technical expertise and resources to support participation in carbon markets and implementation of Article 6.2 of the Paris Agreement.

Despite progress in issuing eligible emissions units ahead of the 2027 CORSIA compliance deadline, supply remains below estimated demand.

As of August 2026, 42 CORSIA-compatible Letters of Authorization covered 72 million EEUs, up from 40 million at the beginning of the year. However, the total remains substantially below the estimated 200 million to 250 million units required for the initial compliance cycle.

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“The growth in EEU supply is encouraging, but the pace must accelerate. ICAO’s participation strengthens the cooperation needed among all stakeholders to unlock the needed supply,” said Marie Owens Thomsen, IATA’s senior vice president for sustainability and chief economist in a statement on Wednesday (Oct. 10, 2026).

“This is essential for CORSIA to deliver on its promise as it is the only globally agreed framework for addressing international air transport emissions,” she added.

Tetsuya Tanaka, ICAO’s deputy director for environment, said the organization was working to ensure the successful implementation of CORSIA by governments, the aviation industry and carbon market stakeholders.

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“Through close collaboration, we are ensuring that sufficient CORSIA EEUs will be available, and our participation in the CORSIA Supporting Alliance will strengthen the pathway to carbon-neutral growth,” Tanaka said.

CORSIA is the global market-based scheme established by ICAO to address carbon dioxide emissions from international aviation. Its effectiveness depends in part on the availability of eligible emissions units that airlines can use to meet their offsetting obligations.

The alliance brings together stakeholders to help remove practical and regulatory barriers to supply, including the authorization processes needed to ensure that emissions reductions used under CORSIA are not counted twice toward countries’ climate commitments. ***

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