The European Commission appears unlikely to adopt an implementing act that provides detailed eligibility requirements for the credits used by EU-based airlines for carbon offsetting under the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) before the end of this year. EU procedures indicate adoption of the act in the second quarter of 2026 at the earliest.
The planned implementing act is still being prepared. Once ready, a draft will have to be sent for consultation with stakeholders for a period of four weeks. The commission wants to begin consultation in the next few months, but not date has been confirmed, Argus understands.
The act has already faced significant delays. It had initially been scheduled by the commission for adoption by the first quarter of 2025, according to information on the commission stakeholder consultation website. But there is no deadline stipulated in the EU emissions trading system (ETS) directive for the commission to publish the specific Corsia implementing acts and regulations for Corsia credit eligibility requirements.
Officials would need a few additional months to assess feedback from the consultation once it has closed. Member state experts would then have an unspecified period to give input informally to the commission. And once the commission formally proposes the implementing act, member states and the European Parliament have two months to either approve or object the proposal.
If there is no positive opinion for adoption in the climate change committee, which is comprised of EU member state experts, the commission may put forward an amended version. A simple majority could then reject the proposal, otherwise, the commission may adopt the amended act.
The time needed for these steps to be taken means the implementing act is unlikely to be approved until the second quarter of next year.
But the implementing act is critical for driving European demand for Corsia credits, as it would allow EU-based airlines to take final purchasing positions for credits toward meeting their Corsia obligations.
Lingering supply bottlenecks — particularly the fact that there is currently still only one project eligible to supply credits for Corsia phase one for emissions generated in 2024-26 — have limited Corsia market liquidity. The total supply of eligible emissions units available is currently limited to just under 16mn credits from a Guyana-based jurisdictional reducing emissions from deforestation and forest degradation (J-REDD+) project hosted by the Architecture for REDD+ Transactions (ART) registry. Credits from this project have been offered to airlines in auctions hosted by the International Air Transport Association.
EU-based airlines are engaging direct with Corsia credit suppliers, but these discussions are mostly on hold until the implementing act provides more clarity around the eligibility criteria.
