Recent developments in the Corsia scheme indicate potential supply constraints due to a lack of airline engagement in its initial compliance phase for 2024-2026. Industry observers note that this could affect the availability of Corsia-eligible emissions units, which are vital for aviation industry decarbonisation efforts.
The market has seen efforts to tag additional credits, including projects in Guyana, with reports suggesting that overall credit supply is increasing. However, market sentiment remains cautious, especially amid geopolitical tensions such as the Iran war, which are exerting downward pressure on prices and leading to market pessimism.
Support from industry stakeholders is increasing, with regulators and insurers approving mechanisms to back Corsia-eligible credits. Nonetheless, major airlines are still deliberating their participation strategies, contributing to ongoing uncertainty. Industry experts emphasize the importance of growing supply and stabilising prices to ensure the market's long-term viability.
Overall, the market dynamics suggest that Corsia's implementation continues to evolve, with active efforts to expand supply and foster regulatory and financial support to meet its decarbonisation targets.
