CORSIA Update: Verra, Gold Standard Await Full Approval, Prices Soar! Leading carbon credit registries, including Verra, Gold Standard, Social Carbon and Climate Action Reserve have received conditional approval from the International Civil Aviation Organization (ICAO) for Phase 1 (2024-2026). The American Carbon Registry and the Architecture for REDD+ Transactions are the only registries with full approval for Phase 1. Market Reaction: The news sent shockwaves through the carbon market. Following ICAO's announcement, CORSIA futures surged significantly, exceeding 100% in just two days to reach $20 per ton. This price increase likely reflects the perceived tightening of credit availability as airlines have fewer options for approved offsets. Impact on Airlines: This delay affects airlines' ability to utilize carbon offsets issued by Verra, Gold Standard, and other major registries for CORSIA compliance in Phase 1. This could potentially impact early participation and project development for airlines seeking to offset their emissions. Reason for Conditional Approval: ICAO identified areas requiring improvement in these registries' processes, particularly regarding credit accounting and avoiding double-counting of emission reductions under UN guidelines. Verra, Gold Standard, and other registries have until April 15th, 2024 to address ICAO's concerns and resubmit their documentation. A final decision on their full eligibility for CORSIA Phase 1 is expected by September 2024. For further details, read the following link. https://lnkd.in/epeRjrcd #CORSIA #CarbonOffsets #Aviation #Sustainability
Moshe Diamant
8mo
Thanks for sharing
CFO MBS Global Investment Group and MBS Green Board
8moCorsia is becoming quite the drawn out process - the possibility of delay and timelines being pushed has definitely increased over the last few months