Navigating CORSIA: How to stay compliant and competitive in a tightening market
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)’s next phase has arrived—and the aviation industry can’t afford to sit back.
What started as a limited pilot is now a global system with higher stakes such as potential fines, cost exposure, and reputational damage. Phase 2 brings wider participation, with carriers in the U.S., Canada, Latin America, and APAC stepping in. For many, it’s the first real test of compliance under ICAO’s framework.
As access to credits gets tighter and the market gets more complex, airlines and air transport organizations need to get ahead to stay competitive. Here’s everything you need to know about CORSIA Phase 2, and how to get ahead of the compliance requirements.
Rising prices, rising risks
CORSIA Phase 2 means more players are entering the market, and that’s reshaping supply and demand.
While Sustainable Aviation Fuel (SAF) plays a role in long-term decarbonization, it’s not central to CORSIA compliance today. SAF is still cost-prohibitive at scale, so offsetting remains the primary mechanism—and the already-limited supply of eligible credits isn’t keeping pace with rising demand.
Registries are enforcing stricter criteria, including ICAO-aligned methodologies and corresponding adjustments under Article 6—further limiting the pool of eligible credits. At the same time, fragmented systems slow transactions and create confusion. The result: a tighter, more complex market with rising prices projected at USD $18–21/ton by the end of CP1.
That complexity also introduces risk. You face the possibility of buying credits that later prove ineligible, being disqualified due to incomplete or incorrect documentation, or becoming caught in confusion around corresponding adjustments.
Smarter procurement means a stronger position
The takeaway is clear: securing credits early is the only way to manage both cost and exposure. That requires a deliberate approach to procurement—one that sets clear eligibility criteria, uses pooled sourcing to access larger volumes, and relies on trusted channels for finding high-quality credits.
You can take several concrete steps now:
Assess CP1 exposure: By modeling potential demand under different rebaselining and participation scenarios, you prevent under/overbuying.
Begin procurement planning: Engage internal teams and external partners early, before deadlines tighten.
Screen for eligibility: Vetting credits against CORSIA labels, adjustment requirements, and registry integrity means you avoid regulatory disqualification.
Diversify sourcing approaches: Mitigate shifts in credit eligibility by combining auctions, pools, and structured procurement to spread risk and increase certainty.
Work with partners who offer expertise and access. A trustworthy sustainability partner will support strategic credit sourcing, from high-integrity credits to ITMO pathways.
Cut through the complexity with confidence
As global participation expands and credit markets tighten, airlines need to move from awareness to action. Phase 2 brings more scrutiny, higher costs, and increased risk—but it also brings opportunity. With the right approach to credit procurement and a trusted partner at your side, compliance can become a strategic advantage.
Read our CORSIA Guidebook to understand the full picture—and reach out to start building a plan that keeps you compliant, competitive, and ready for what’s next.
Want to dive deeper? Join our webinar, CORSIA Clarity in 45 Minutes: Eligible Credits, Verified Supply, Structured Strategy, on November 6 at 16.00 CET. As we unpack Phase 2 of CORSIA, you'll learn how to navigate credit eligibility, manage compliance risk, and prepare your procurement strategy for what’s next.