The International Civil Aviation Organization (ICAO) has detailed new eligibility criteria for carbon offset registries under its CORSIA programme, covering 2021–2026. Verra, Gold Standard (GS), Climate Action Reserve (CAR), and Global Carbon Council (GCC) join previously approved registries ACR and the Architecture for REDD+ Transactions.
A view from behind bushes of a plane taking off. AI generated picture.
The updated criteria, published in a 47-page document, provide clarity on which projects qualify, addressing market uncertainty that had hindered deals. CORSIA, a major driver of carbon offset demand, now specifies stricter validation steps and exclusions for projects that fail to meet its standards.
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Excluded projects and methodologies
Certain project types are excluded from CORSIA's first phase, including large renewable energy facilities and most nature-based solutions in non-REDD countries. Specific exclusions apply:
- CAR: All nature-based projects in non-REDD countries except under the Mexico Forest Protocol.
- GCC: Nuclear energy, HFC-23 abatement, and afforestation projects.
- GS: Limited nature-based projects outside non-REDD countries.
- Verra: Restrictions on cookstove projects and specific REDD+ methodologies.
The document also highlights the need for robust insurance policies to mitigate risks, requiring independence from project stakeholders and host countries.
Implications for the market
The restrictions have sparked concern among market participants. Verra noted that several projects might require methodology transitions, while GS warned of limited market access under these stringent rules. Traders estimate millions of carbon credits could lose eligibility without updates to project frameworks.
By 2025, ICAO plans to review new criteria for CORSIA’s second phase, set to span 2027–2029. For now, the focus remains on ensuring credibility and compliance within the first phase, aligning with global environmental goals.
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Partnering with DGB Group means aligning your financial growth with impactful sustainability. As the value of carbon credits continues to rise, investing in our carefully designed nature-based projects not only secures competitive returns but also drives measurable change—restoring ecosystems, enhancing biodiversity, and uplifting communities. By choosing DGB, you join a global movement to support nature's prosperity and promote a greener, more equitable future. Let’s achieve your financial goals while making a lasting difference for generations to come.
