CORSIA-eligible carbon credits
Under CORSIA, international aviation is entering a new phase of carbon compliance, requiring airlines to actively manage emissions exposure. As eligibility rules evolve and the pool of qualifying credits remains limited, securing the right supply is crucial.
SEFE supports airlines with direct access to CORSIA-eligible carbon credits, combining trading expertise, structured delivery and payment options, and eligibility assurance to confidently hedge their exposure.
Supporting your CORSIA strategy
SEFE is an integrated European energy company with over 20 years of experience in carbon markets and environmental products. Our environmental products desk combines carbon market expertise with extensive trading infrastructure and risk management tools.
SEFE provides airlines with access to CORSIA-eligible carbon credits on both a spot and forward basis, enabling greater certainty in compliance planning. The portfolio spans multiple project types, geographies and crediting standards, allowing tailored sourcing aligned to airlines’ specific requirements.
SEFE designs customised products to help airlines mitigate key procurement risks, including mechanisms to address eligibility risk, delivery risk, price risk, counterparty risk and credit risk.
SEFE supports airlines with structured procurement strategies, including forward purchasing, portfolio diversification, trade finance and price risk management. Solutions are tailored to align with each airline’s risk appetite and compliance timeline. Unlike brokerage intermediaries, SEFE has made direct investments in forward streams of carbon credits from project developers, providing airlines with a reliable and secure route to market.
Why CORSIA matters now
CORSIA is entering a phase of mandatory compliance, where emissions on international routes between participating states translate into financial exposure for the airlines.
From 2024 to 2035, airlines must offset emissions above a threshold set at 85% of 2019 international aviation levels. Compliance obligations are based on routes between participating states, meaning exposure depends on network footprint rather than airline nationality.
From 2024 to 2035, airlines must offset emissions above a threshold set at 85% of 2019 international aviation levels. Compliance obligations are based on routes between participating states, meaning exposure depends on network footprint rather than airline nationality.
CORSIA applies a route-based approach to determining compliance. If both the departure and arrival states of a flight participate in CORSIA, the route is in scope. If either state does not participate, the route is excluded.* This distinction is critical for accurately modelling exposure and planning procurement strategies.
*Except for flights between European Economic Area (EEA) countries, Switzerland and the UK, as these are covered by the EU and UK Emissions Trading Schemes (EU ETS and UK ETS).
*Except for flights between European Economic Area (EEA) countries, Switzerland and the UK, as these are covered by the EU and UK Emissions Trading Schemes (EU ETS and UK ETS).
The CORSIA credit market is widely viewed to be structurally tight. Forecasted demand during Phase 1 is expected to exceed currently available eligible supply, driven in part by delays in host-country issuance of Corresponding Adjustments (CAs).* Only credits with confirmed eligibility, through either CAs or Letters of Authorisation (LoAs), can be used for compliance, significantly narrowing the pool of available supply.
* IATA - CORSIA Eligible Emissions Units (EEUs)
* IATA - CORSIA Eligible Emissions Units (EEUs)
Early procurement gives airlines access to sufficient supply at viable price levels, enabling them to hedge price risk, spread costs and secure participation in preferred projects.
CORSIA MARKET
Dynamics and procurement considerations
CORSIA is not only a compliance obligation, but also a procurement and risk management challenge. Airlines must navigate evolving regulatory requirements alongside a constrained and developing carbon market, where eligibility, pricing and availability are closely interconnected.
Market conditions suggest increasing price pressure as compliance deadlines approach, making early procurement an effective way to reduce exposure.
Airlines must manage evolving regulations, enforcement mechanisms and financial exposure.
Supplier selection should consider experience, inventory access, risk management capability and transparency. Airlines should assess suppliers across the following criteria:
SEFE’s environmental products desk integrates all of these criteria into a single offering.
- Track record and carbon market experience
- Inventory depth and diversification
- Corresponding Adjustment (CA) / Letter of Authorisation (LoA) backing and insurance mechanisms
- Delivery guarantees and risk sharing
- Pricing flexibility and hedging options
- Reporting transparency and audit readiness
- Credit risk
SEFE’s environmental products desk integrates all of these criteria into a single offering.
CORSIA CREDITS
Procurement guide for airlines
Airlines need a structured approach to sourcing CORSIA-Eligible Emissions Units (known as CEEUs or EEUs) to meet compliance requirements and manage market and regulatory risk. To qualify for compliance, CEEUs must originate from programmes approved by the International Civil Aviation Organisation (ICAO), meet the applicable Emissions Unit Criteria (EUC), fall within eligible vintage ranges, and be supported by so-called Corresponding Adjustments (CA) or insured Letters of Authorisation (LoAs). Credits must also be correctly tagged and cancelled within approved registries to ensure compliance.
Our 8-step CORSIA procurement framework outlines the key steps in the procurement process.
Our 8-step CORSIA procurement framework outlines the key steps in the procurement process.
Identify which international routes fall within CORSIA scope and determine the scale of compliance obligations.
Estimate emissions relative to the baseline to quantify offsetting requirements across compliance periods.
Define the balance between sustainable aviation fuel (SAF) usage and carbon credit procurement, based on cost and availability.
Establish priorities between price certainty, flexibility and delivery risk to guide procurement decisions.
Assess available CORSIA-eligible credits, considering programme approval, vintage eligibility and corresponding adjustment status.
Select counterparties based on experience, access to eligible inventory, delivery capability and transparency.
Develop a well-defined sourcing approach, including forward purchasing, pricing structures and portfolio diversification.
Continuously track compliance position and adapt procurement strategy in response to market and regulatory developments.
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