The International Civil Aviation Organization (ICAO) has joined a global industry alliance aimed at accelerating the supply of eligible carbon credits for international aviation, as concerns grow over a significant shortfall ahead of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) compliance deadline in 2027.
The announcement was made by the International Air Transport Association (IATA) during its World Sustainability Symposium in Brussels, marking a significant step in efforts to strengthen cooperation between governments, airlines and carbon market participants in implementing the industry’s global emissions offsetting framework.
ICAO’s participation in the Supporting Alliance for CORSIA Eligible Emissions Unit (EEU) Supply brings the UN aviation agency into a coalition of more than 80 stakeholders working to address regulatory and administrative bottlenecks that have constrained the availability of carbon credits approved for use under CORSIA.
The development comes as airlines face growing pressure to meet their emissions obligations under the scheme, which is designed to address increases in international aviation’s carbon emissions above an established baseline.
Carbon Credit Supply Remains Well Below Requirements
Despite progress in the authorization of eligible emissions units, the latest figures from IATA reveal a substantial gap between available supply and the industry’s anticipated compliance requirements.
As of August 2026, 42 CORSIA-compatible Letters of Authorization covered approximately 72 million eligible emissions units, up from 40 million at the beginning of the year.
However, the estimated requirement for the initial compliance cycle stands at between 200 million and 250 million units, suggesting that currently authorized volumes cover only around 29% to 36% of anticipated demand.
The figures point to a potential shortfall of between 128 million and 178 million units, highlighting the scale of the challenge facing the carbon market as the compliance deadline approaches.
Although the increase in authorized units represents considerable progress since the beginning of the year, the industry must significantly accelerate the authorization and availability of eligible credits to meet projected demand.
“The growth in EEU supply is encouraging, but the pace must accelerate,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.
She emphasized that ICAO’s involvement would strengthen cooperation among stakeholders and help unlock additional supply, describing CORSIA as the only globally agreed framework for addressing international aviation emissions.
Addressing Regulatory Barriers to Carbon Markets
A central focus of the alliance is helping governments navigate the regulatory processes required to authorize carbon credits for use under CORSIA.
One of the major challenges involves reconciling the emissions reduction commitments countries have made under the Paris Agreement with the requirements governing the international transfer of carbon credits.
Under Article 6.2 of the Paris Agreement, countries can cooperate through internationally transferred mitigation outcomes, subject to accounting arrangements intended to prevent the same emissions reductions from being claimed more than once.
For CORSIA, this means that emissions reductions generated by projects in one country must be properly authorized and accounted for before they can be used by airlines to meet their offsetting obligations.
These procedures are particularly important for developing countries seeking to participate in international carbon markets while preserving the integrity of their national climate commitments.
The alliance aims to provide technical expertise, practical implementation support and assistance with authorization processes, helping governments overcome administrative barriers that may delay the availability of eligible emissions units.
Opportunities for African Carbon Markets
For African countries, the expansion of CORSIA’s carbon credit market could present opportunities to attract climate finance through emissions reduction projects, provided those projects meet the scheme’s eligibility and authorization requirements.
The continent has potential to develop carbon credit projects across sectors including renewable energy, clean cooking, waste management and other emissions reduction activities.
However, participation in the CORSIA market requires more than generating verified carbon reductions. Host governments must establish the necessary authorization and accounting mechanisms, including safeguards against double counting.
This places particular importance on institutional capacity, regulatory coordination and the implementation of Article 6 of the Paris Agreement.
ICAO’s involvement in the alliance could therefore be relevant to African governments seeking technical support to strengthen their participation in international carbon markets.
For countries such as Uganda, the broader opportunity lies in developing credible carbon market frameworks that can support eligible projects while attracting international financing.
Nevertheless, access to this market will depend on the ability of individual countries to establish robust authorization procedures and meet the applicable environmental integrity standards.
ICAO Seeks to Strengthen CORSIA Implementation
ICAO said its decision to join the alliance reflects its commitment to supporting governments, the aviation industry and carbon market stakeholders in implementing the global scheme.
“ICAO is working to ensure the successful implementation of CORSIA by governments, the aviation industry, and carbon market stakeholders,” said Tetsuya Tanaka, Deputy Director, Environment at ICAO.
He added that closer collaboration would help ensure sufficient eligible emissions units become available and strengthen the pathway towards carbon-neutral growth.
ICAO’s participation is significant because the organization oversees the international framework within which CORSIA operates, while governments remain responsible for implementing the relevant national authorization processes.
By participating in the alliance, ICAO will be positioned to support closer coordination between the aviation sector and the government institutions responsible for facilitating access to eligible carbon credits.
A Critical Test for Aviation’s Climate Commitments
Established by ICAO in 2016, CORSIA represents the aviation industry’s first global market-based mechanism for addressing carbon emissions from international flights.
The scheme requires covered aircraft operators to offset qualifying emissions growth through the purchase and cancellation of eligible emissions units.
Its first phase covers emissions from 2024 to 2026, with operators facing their initial major compliance deadline in 2027.
The success of this phase will depend partly on whether the international carbon market can deliver sufficient volumes of eligible credits at a pace consistent with airline compliance requirements.
An inadequate supply could create additional uncertainty for aircraft operators seeking to plan and meet their obligations, while potentially increasing competition for the limited pool of authorized credits.
Beyond the immediate compliance challenge, the issue also raises broader questions about the capacity of global carbon markets to support aviation’s long-term climate ambitions.
With ICAO now formally participating in the alliance, attention will increasingly turn to whether stronger institutional cooperation can translate into faster government authorizations and a meaningful expansion in eligible carbon credit supply.
For the aviation industry, the next year will represent a critical test of CORSIA’s ability to move beyond regulatory commitments and deliver a functioning global offsetting market at scale.
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