In 2016, the UN's International Civil Aviation Organisation (ICAO) introduced CORSIA, the first global offsetting scheme for the private sector, aimed at promoting low-carbon growth in aviation. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is now driving significant changes in carbon markets and climate regulation.
Commercial plane flying over the Pisgah National Forest, North Carolina. AI generated image.
Starting in January 2024, 126 of the 193 member states voluntarily joined CORSIA's initial phase. This scheme requires airlines to account for emissions surpassing 2019 levels, retroactively from 2021. Mandatory compliance is set to begin in 2027.
Read more: What is CSRD and how does it affect your business?
The demand for carbon credits under CORSIA is rising. Credits from the voluntary carbon market (VCM) are eligible if the issuing registry is approved by the CORSIA Technical Advisory Board and the issuing project has host country authorisation. A crucial element is the Corresponding Adjustment, ensuring no double-counting of emissions reductions.
A major development is the increasing need for carbon insurance. Verra, the Gold Standard, and the American Carbon Registry have announced that project developers must secure third-party guarantees to sell credits to CORSIA buyers. This insurance is necessary to protect against the risks of Article 6 revocation and ensure compliance.
Read more: Verra moves towards CORSIA compliance with new carbon credit strategies
The introduction of carbon insurance is seen as a pivotal moment for the VCM. CORSIA is projected to drive demand for 100–200 million eligible credits annually, potentially increasing prices to $40 per metric tonne. For developers, securing insurance against Article 6 risks is now critical to capitalise on this opportunity.
Amidst transformative shifts in the carbon market and the innovative use and rising demand for carbon credits, now is the ideal moment to seize this opportunity. Whether you're an investor interested in green bonds for nature-based carbon projects, an organisation aiming to measure and compensate for your carbon footprint with carbon units, or an individual eager to contribute by planting trees, we have the solution for you. With DGB Group’s diverse and tailored green solutions, including verified carbon and biodiversity credits, you can take action today to make a positive environmental impact and benefit from the dynamic growth of the carbon market.
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