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CORSIA and Article 6: A Crucial Intersection in International Climate Policy

CORSIA and Article 6: A Crucial Intersection in International Climate Policy

Year Published

2024

Contributing Organizations

Climate Action Center of Excellence (CACE)
HFW

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic
Carbon Markets & Carbon Finance
Topic 2
Regulations
Topic 3
Nationally Determined Contributions (NDCs)

Target Audience

Advisors & Consultants
Governments & Policymakers
Project Developers
Technical Assistance Providers
Real Economy Corporates

Relevant Geography

Global
CORSIA and Article 6: A Crucial Intersection in International Climate Policy

Resource Description

This resource examines how CORSIA, the aviation offsetting scheme, aligns with Article 6.2 of the Paris Agreement. It highlights overlaps, gaps, and risks for carbon markets and national commitments.

Why This Matters

Better alignment of CORSIA and Article 6 will safeguard market integrity, sustain investment, and ensure aviation’s climate commitments support Paris goals.

Key Insights

  • Article 62 enables ITMOs; CORSIA uses eligible units (EEUs), which only partly overlap
  • Demand could reach 100 Mt CO2 annually under CORSIA and US$100b in Article 6 markets by 2030
  • Misalignment between CORSIA Phase II (2027–2035) and NDC cycles ending 2030 risks offset authorization and investor confidence
  • Solutions include revising NDCs to 2035+, contractual safeguards, and aligning future CORSIA phases with NDC periods
  • Strong ICAO–country–market cooperation is needed to ensure integrity and avoid double counting

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