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CORSIA Phase 1 updates approve 6 carbon credit standards

CORSIA, managed by the International Civil Aviation Organization (ICAO), requires airlines to monitor and report their emissions, allowing them to purchase emission reduction units, also called carbon credits, if they exceed a set baseline. 

The program updates impact both airlines and the carbon market, signalling which credits are eligible and influencing future market purchases.

What Are the New CORSIA Updates?

Recently, CORSIA reviewed and approved six carbon credit standards for its first phase. These include Winrock International’s American Carbon Registry and Architecture for REDD+ Transactions, which were approved without exclusions. 

The Climate Action Reserve (CAR), Global Carbon Council (GCC), the Gold Standard, and Verra’s VCS program, were conditionally approved while CDM didn’t qualify for Phase I.

CORSIA allows credits from 2021 onwards with a corresponding adjustment to avoid double counting. This adjustment ensures that credits used for CORSIA don’t overlap with a country’s emission reduction goals under the Paris Agreement.

The mechanism ensures that the allocation of the credits represents real carbon reduction activity and sales, boosting carbon market integrity. 

The CORSIA’s Technical Advisory Body (TAB) recommendations from the review influence the market by increasing demand for approved credits. This doesn’t only cover the airlines but also signals other buyers to consider the credits “best-in-class”. 

This will affect credits currently available and the future ones, driving up demand in both cases. However, some high-quality credits endorsed by ICROA are not accepted under CORSIA, affecting their eligibility.

Apart from the reassessment, the TAB will also assess any new applications for standards that hadn’t already been approved. The ICAO Council will officially take into account TAB’s recommendations this fall after assessing new credit standard applications.

How Should Airlines Take The Changes? 

For airlines preparing for CORSIA’s upcoming phases, it’s important to align their credit strategy with the TAB recommendations for compliance. They need to ensure they make CORSIA-compliant purchases before the true-up deadlines.

For the pilot phase (2021-2023), airlines don’t need to show compliance until January 31, 2025. For phase I (2024-2026), the deadline is January 31, 2028. To meet these deadlines, airlines should plan credit purchases well ahead to avoid any risks.

Due to CORSIA’s multi-year requirements, airlines might consider multi-year purchasing agreements to secure their credits. These agreements should align with both the pilot phase and phase I standards.

While some standards are conditionally approved for phase I, like VCS and Gold Standard, they’re likely to receive full approval.

It’s important to note that credits meeting post-2021 criteria are not yet available. Airlines can fulfill pilot phase purchasing requirements under the existing standards but need to wait for phase I eligible credits. Any long-term deals should consider these factors and specify the qualifying years.

To effectively implement a credit purchasing strategy, clear communication and internal education within airlines are crucial. Airlines should anticipate delays in the availability of Phase I credits, likely not until 2024 at the earliest. 

Additionally, CORSIA eligibility rules may increase demand and prices for these credits, so airlines should budget accordingly.

The ICAO estimated the costs from CORSIA offsetting for airline operators as shown in the following chart. This is under the assumption that carbon prices range from a low of $6 – $12 to a high of $20 – $40 per tonne of CO2.

what is CORSIA offsetting cost

What Are the Effects on Non-Airline Credit Buyers?

Airlines aren’t the only ones affected by CORSIA – the program also impacts those buying carbon credits beyond airlines. 

As airlines rush to buy these credits, the limited market will see growing demand, leading to higher prices. Non-airline buyers might also view TAB recommendations as a sign of credit quality, increasing demand for CORSIA-eligible credits and their prices.

For those using CORSIA-approved credits in their carbon strategy, it’s smart to watch these market changes. Adjusting budgets, keeping stakeholders informed, and buying credits well ahead of deadlines can help prepare for these shifts.

While some high-quality credits aren’t eligible under CORSIA, they might meet other standards like the ICVCM’s Core Carbon Principles. These principles are still new but more information will be available on this framework and how the CORSIA credits will be aligned under it. 

Balancing CORSIA-eligible credits with quality non-CORSIA ones (like Plan Vivo or Puro.earth credits) can help manage budget and availability issues caused by CORSIA. This mix allows better predictions of availability and less impact from price changes.

Stakeholders who value CORSIA credits might face increased demand and prices. To manage this, they might buy CORSIA credits being assessed by the ICVCM early. This way, they can avoid potential demand impacts caused by meeting the Core Carbon Principles’ criteria.

  • It’s important for credit buyers to discuss how they see CORSIA’s impact on credit quality with stakeholders.

Some might follow CORSIA’s lead strictly, so it’s wise to avoid buying CDM credits to match their preferences. Others might be more flexible, choosing more non-CORSIA credits to reduce risk when buying.

CORSIA’s latest review of carbon credit standards signifies a pivotal moment for airlines and non-airline buyers alike. Credit buyers should adapt their strategies to account for increased demand, pricing shifts, and explore a balanced mix of CORSIA-eligible and other high-quality credits to show commitment to real carbon reduction. 

The post 6 Carbon Credit Standards Approved Under CORSIA’s Phase 1 Updates appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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