WeAct has joined 22 other project developers, crediting programs, aviation bodies and other stakeholders in signing a Joint Statement calling for countries to take urgent action to unlock CORSIA-eligible carbon credit supply.
Earlier this month, IATA’s Joint Statement at the 42nd ICAO Assembly: Urgent Call for Host Country Action to Enable CORSIA Compliance was presented to member states attending the 42nd Assembly of the International Civil Aviation Organisation (ICAO). The statement calls for countries to urgently address the extremely limited supply of carbon credits available for airlines to fulfill their obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Governments have a unique role in issuing Letters of Authorisation – formal notices confirming that carbon credits generated in their jurisdictions can be used for other international (non-NDC) purposes like CORSIA compliance. Country authorisations, as allowed for under Article 6 of the Paris Agreement, are a critical pathway for unblocking the significant roadblocks to liquid carbon credit supply that the CORSIA market is currently experiencing.
“…CORSIA is a vital part of aviation’s global climate strategy. Through it, airlines mitigate their climate impact by funding verified emissions reductions in other sectors. In generating this climate finance CORSIA also plays a key role in both environmental and socio-economic progress, especially in developing countries. To unlock CORSIA’s climate finance potential and ensure its contribution to aviation’s decarbonization, states must authorize the release of EEUs. That is one of our top messages to the 193 member states at the ICAO Assembly…”
Yue Huang, Assistant Director Climate Policy, at the 42nd ICAO Assembly, in Montreal, Canada.
IATA forecasts that airlines will require between 146 and 236 million Eligible Emissions Units (EEUs) during CORSIA’s first phase (2024–2026). However, the current supply of CORSIA-eligible units is limited to the 15.8 million credits made available by Guyana. Only a handful of other countries have developed robust Article 6 frameworks, and so this Joint Statement and IATA’s press release earlier this week calls for more states to seriously consider the role they can play in not just authorising CORSIA EEUs, but in supporting the functioning of the world’s largest active carbon market.
“WeAct is proud to be a signatory of this IATA Joint Statement. CORSIA markets urgently need more supply unlocked for airlines to meet their obligations in this first phase, and we are committed to creating liquid, functioning markets that deliver real climate outcomes,” said WeAct General Manager, Brad Kerin.
“Our firsthand experience through our CORSIA-aligned Madagascar Clean Cookstove project, has shown us that any country can develop robust Article 6 frameworks, and use them as a precision tool to attract foreign direct investment and strategically deliver on its Paris NDC targets,” said Kerin.
“Over the last 18 months, the Madagascar Government has designed and is now implementing its Article 6 framework and regulation in way that will unlock CORSIA EEU supply, attract climate finance, deliver on its Paris targets and generate real sustainable development outcomes for Malagasy communities on the ground,” said Kerin.
“Madagascar has taken a dual ‘theory and practice’ approach to developing its Article 6 authorisation frameworks – building its policy systems and processes, and then testing them on a live project. Using our WeAct/KCM Madagascar Clean Cookstove Project as the ‘pilot phase’ activity has enabled Madagascar to not only develop a deep understanding of how to enhance and operationalise its own policies – but also more efficiently design its market-facing structures to attract investment,” said Kerin.
“Our Madagascar Clean Cookstove Project has received formal Letters of Authorisation through this Madagascar Government’s Article 6 pilot process. We are eagerly awaiting clarity on Verra’s eligible insurance products that will that will enable our project to move from CORSIA-alignment to full eligibility in the coming months,” said Kerin.
VIEW JOINT STATEMENT >
VIEW IATA PRESS RELEASE >
For more information on accessing forthcoming WeAct CORSIA EEU volumes, please contact Brad Kerin, General Manager at brad@weact.com.au.
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