IATA has launched the Supporting Alliance for CORSIA EEU Supply, a new coalition tasked with resolving a growing shortage of eligible carbon credits under the aviation sector’s international carbon compensation scheme.
Aerial view of a busy international airport with multiple aircrafts. AI generated picture.
Announced at IATA’s annual general meeting in Rio de Janeiro, the Alliance brings together more than 32 members, including airlines, governments, and carbon market stakeholders. Its goal is to make between 225 and 250 million CORSIA Eligible Emissions Units (EEUs) available by spring 2027. Membership is open to all organisations and national governments ‘willing to commit expertise and practical resources and to make a significant contribution’ to meeting this target.
CORSIA—the Carbon Offsetting and Reduction Scheme for International Aviation—was established through the United Nations’ International Civil Aviation Organization (ICAO) in 2016. It requires international carriers to compensate for emissions growth above 2019 levels. The scheme ran a pilot phase between 2021 and 2024, with voluntary participation continuing through 2026. From 2027, it extends to cover all international flights, with exemptions for the smallest and least developed nations.
The central obstacle the Alliance is designed to address is the authorisation process under Article 6.2 of the Paris Agreement. Host countries must formally approve the transfer of carbon credits into the CORSIA system before those credits become eligible for compliance use—a process that has created significant delays.
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‘Credits must be transferred between these systems to avoid double-counting, which has become an important bottleneck,’ said Marie Owens Thomsen, Senior Vice President Sustainability and Chief Economist at IATA.
The financial stakes are considerable. The first compliance phase alone could generate between $4 and $5 billion in funding for environmental action, with projections reaching $100 billion by 2035 depending on market prices. Owens Thomsen noted that this revenue would support environmental action, remote communities, and economic development.
To accelerate progress, the Alliance will offer pro bono technical assistance to host countries on request, tailored to each government’s stage of implementing its Paris Agreement obligations. Founding airline members include Lufthansa Group, Air France-KLM, International Airlines Group (IAG), All Nippon Airways (ANA), and Qatar Airways.
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