## CORSIA Carbon Trading: How It Works, Eligible Credits and Market Opportunities
What Is CORSIA Carbon Trading?
CORSIA carbon trading is the buying and selling of carbon credits that may qualify as CORSIA Eligible Emissions Units, which airlines can cancel to meet offsetting requirements under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The scheme was developed by the International Civil Aviation Organization (ICAO), the United Nations agency for civil aviation.
CORSIA is not a marketplace. It is a framework under which operators monitor, report and verify emissions from international flights and, where offsetting applies, cancel eligible units. The trading happens separately, through bilateral contracts, brokers, auctions, platforms and futures contracts. ICAO sets the eligibility rules but does not operate or guarantee those transactions.
A carbon credit, also called an emissions unit, represents one tonne of carbon dioxide equivalent (tCO₂e) reduced or removed by a project and issued by a crediting programme. Eligibility matters because most credits sold in the voluntary market cannot be used for CORSIA. The ICAO Council approves programmes on the advice of its Technical Advisory Body (TAB), and even within an approved programme, not every unit qualifies.
Obligations also differ between operators, depending on routes, participating States and exemptions. Before assuming anything, it helps to check whether an airline is covered by CORSIA.
How Does the CORSIA Carbon Credit Trading Process Work?
The exact process depends on the deal structure, programme rules and current ICAO requirements. Most purchases follow seven steps:
Define the purpose and period. Decide which compliance period the units are for: the pilot phase (2021–2023), the first phase (2024–2026) or a later one. Confirm the eligibility rules for that period in ICAO’s document CORSIA Eligible Emissions Units. Research candidate units and the programmes that issued them. Verify the project, vintage, serial numbers and documents against the programme’s public registry. Assess supplier terms, availability, price and transaction costs. Complete the purchase through the chosen channel, such as a bilateral contract, broker, auction or platform. Follow registry, cancellation and reporting procedures. The operator cancels units on the programme’s designated registry and reports to its State authority. Industry sources report that ICAO’s deadline for first-phase cancellations is 31 January 2028, so confirm the date with your authority.
Buying a credit does not by itself complete an airline’s obligation. An operator that purchases units but cancels them on the wrong registry, or cannot show adequate records, may still fall short. Cancellation, reporting and verification are separate steps.
Which Carbon Credits Can Be Used for CORSIA Trading?
A general carbon credit is any unit issued by a crediting programme. A CORSIA Eligible Emissions Unit is one that falls within the scope ICAO has approved for a given compliance period. According to ICAO’s April 2026 edition (14th edition, 1 April 2026), ten programmes are approved for the first phase: American Carbon Registry, Architecture for REDD+ Transactions, BioCarbon Fund Initiative for Sustainable Forest Landscapes, Climate Action Reserve, Forest Carbon Partnership Facility, Global Carbon Council, Gold Standard, Isometric, Premium Thailand VER and Verra’s VCS. Four programmes are currently approved for the 2027–2029 period. These lists have changed several times, so always check the latest edition.
Programme approval does not make every unit eligible. ICAO itself states that not all units from approved programmes qualify. Conditions that may apply include:
Crediting start date: the activity’s first crediting period must have started in 2016 or later. Vintage windows: eligible unit dates vary by programme and period. For the first phase, reductions generally fall between 2021 and 2026. Project and methodology exclusions: these differ by programme. Host-country authorisation and corresponding adjustment, or a programme-approved guarantee, where the programme entry requires it. Registry and labelling: ICAO states that only units in the listed programme registries, labelled accordingly, are eligible.
Seller descriptions can be outdated or incomplete, so a buyer must check the specific unit, its serial number and its registry label against the current ICAO document. For a fuller walkthrough, see this CORSIA eligibility requirements guide.
How Are CORSIA Carbon Credit Prices Determined?
There is no official or universal CORSIA price. CORSIA sets eligibility rules, not a unit price. Prices usually reflect:
eligibility under the relevant CORSIA rules, including host-country authorisation status crediting programme and project type vintage and availability project quality and documentation supply and demand conditions transaction size, brokerage and administrative fees delivery terms and procurement timing
Published assessments show how much the numbers move. Fastmarkets’ weekly spot assessment for CORSIA Phase 1 (USD per tCO₂e, prompt delivery, 10,000–100,000 tCO₂e, vintages 2021–2026) put the price at $19.00 on 28 January 2026, reached a record low of $9.50 on 24 June 2026, and stood at $11.60 on 15 July 2026. These are market assessments, not guaranteed trade prices.
On 16 October 2026, a market commentary from supplier Green Earth cited a CP1 December 2026 assessment of $13.15 per tCO₂e; the commentary did not name the assessor. For a completed transaction, Carbon Pulse reported that airlines bought units at a fixed $21.70 per tonne in the first IATA Phase 1 auction in early 2025.
Supply and demand estimates also vary widely. Phase 1 demand estimates range from about 100–150 million units (ICAO figures cited by EDF) to 200–250 million (IATA), while labelled supply was estimated at roughly 37–41 million units in mid-2026, as compiled by Green Fuel Journal. Prices can shift quickly, so any figure here should be re-checked on the day you transact. For more on cost drivers, see this guide to CORSIA carbon credit price factors.
What Are the Benefits and Risks of CORSIA Carbon Trading?
Benefits. A functioning market gives airlines access to eligible emissions units, flexibility in timing and structure (spot, forward or futures-linked), and the ability to compare supply across programmes and project types. For project developers and suppliers, CORSIA carbon market opportunities arise where units meet eligibility conditions, including host-country authorisation.
Risks and limitations need equal attention:
buying units that are not eligible for the intended purpose relying on outdated or incomplete eligibility information weak documentation or poor traceability price volatility and uncertain future supply counterparty and delivery risk confusing voluntary-market claims with formal compliance use, which are separate things
The safeguard is due diligence: check current ICAO documents, verify registry records yourself and keep a complete evidence file. Carbon credits are also not a substitute for direct emissions reductions. CORSIA is intended to complement measures such as operational efficiency, newer aircraft and sustainable aviation fuels.
How to Choose a CORSIA Carbon Credit Supplier or Trading Platform
Whether you are assessing a broker, supplier or marketplace, ask for evidence of:
the eligibility of the specific units, not the project in general the issuing programme and registry records vintage, serial numbers and current unit status transparent pricing and all transaction fees contract terms, delivery conditions and counterparty identity the documents your compliance process will need the cancellation, retirement or registry transfer procedure
A marketplace listing or supplier claim is not proof of CORSIA eligibility. Confirm each point against ICAO’s document and the registry, and avoid paying before you have seen serial numbers. Resources such as CORSIA Carbon Credit’s buyer’s checklist for CORSIA-eligible units can help readers structure their own checks. As the site itself notes, it is independent of ICAO and no checklist or website can guarantee compliance.
In summary, CORSIA carbon trading works best when buyers separate the market from the rulebook: trade with care, verify every unit against current ICAO rules and treat compliance as a documented process rather than a single purchase.
Frequently Asked Questions (FAQs)
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What is CORSIA carbon trading? It is the buying and selling of carbon credits that may qualify as CORSIA Eligible Emissions Units for use by airlines under ICAO’s offsetting scheme. CORSIA itself is a regulatory framework, not a single exchange.
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Can all voluntary carbon credits be traded for CORSIA compliance? No. Only units from ICAO-approved programmes that fall within the programme’s scope, dates and exclusions for the relevant compliance period qualify. Many voluntary credits do not.
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How do buyers verify CORSIA carbon credit eligibility? Check ICAO’s current CORSIA Eligible Emissions Units document, then confirm the unit’s programme, project, vintage, serial number, registry label and any host-country authorisation evidence. Do not rely on a seller’s description alone.
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What factors affect CORSIA carbon credit prices? Eligibility status, programme and project type, vintage, supply and demand, deal size, fees, delivery terms and timing. There is no single official price.
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Does buying a CORSIA-eligible carbon credit automatically satisfy an airline’s compliance obligations? No. The operator must also cancel the units correctly on the designated registry, meet monitoring, reporting and verification duties and follow its State authority’s requirements. Obligations vary by operator.