The carbon credit market for the aviation industry witnessed a significant price surge, with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) futures doubling to $20 per tonne in just 48 hours. This dramatic increase is linked to the International Civil Aviation Organization's (ICAO) recent decision to grant conditional approval to key carbon registries like Verra, Gold Standard, and Climate Action Reserve, among others. These registries, pivotal in the issuance of carbon credits, now face restrictions that have heightened competition among buyers due to anticipated supply constraints.
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Experts believe this conditional approval, affecting the availability of credits, is a result of unresolved issues concerning UN protocols on credit accounting and the avoidance of double counting. The decision underscores the complexity of establishing a universally accepted framework for carbon credit transactions, particularly under Articles 6.2 and 6.4 of the Paris Agreement, which aim to streamline global emission reduction efforts and the creation of a global carbon market, respectively.
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Chart showing CORSIA Eligible Emissions Units (2024-2026) Futures. Source: https://www.ice.com/products/83046673/CORSIA-Eligible-Emissions-Units-2024-2026-Futures/data?marketId=7490945&span=3
To date, full approval has been extended to the American Carbon Registry and the Architecture for REDD+ Transactions, positioning them to issue credits during CORSIA's initial phase from 2024 to 2026. Others aim to meet the requirements for subsequent phases, guided by ICAO's feedback, and face the first documentation resubmission deadline of 15 April, with a review slated for September 2024. This step marks a critical juncture in the aviation industry's journey towards sustainable, regulated carbon trading, emphasising the growing importance of environmental accountability on a global scale.
Read more: How to reduce your business’ travel emissions with nature-based solutions
At DGB Group, we focus on creating and overseeing extensive, meaningful projects centred around nature. These initiatives are carefully designed to plant trees on a massive scale, rejuvenate natural environments, boost biodiversity, safeguard vital ecosystems and habitats, and uplift local communities, all with the goal of fostering a sustainable and verdant future.
Read more: Forests for the future: Apple's $280 million plan
Our nature-based projects generate top-quality carbon credits (carbon units), all verified by Verra or the Gold Standard. These carbon units are essential in supporting businesses in the aviation industry to compensate for their emissions in line with CORSIA requirements. By compensating for your company's carbon emissions through DGB's carbon units, your business can contribute substantially to its own positive development and the betterment of nature. We offer guidance to businesses on embracing ecological improvements, measuring their environmental impact, formulating eco-friendly strategies, and sharing their sustainability journey.
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