Supply and Strategy
Reducing CORSIA compliance risk
From January 2027, airlines operating international flights must offset emissions above 2019 baseline levels—a first-of-its-kind industry mandate.
But a critical mismatch is emerging: projected demand for Phase 1 credits (175–200 million tons) far outstrips current eligible supply (40 million as of April 2026). For airlines that have not prepared in advance, this can create procurement squeeze, financing exposure, and reputational risk.
The path forward is clear. Airlines need a forward procurement strategy paired with carbon insurance and structured financing to lock in supply, manage price volatility, and protect against project under-delivery. Acting now—rather than waiting until 2027—lets airlines diversify across registries and project types, build contractual protections, and demonstrate auditable compliance to regulators and investors. With SAF still scarce and expensive, securing eligible credits today is the most practical near-term compliance pathway.
Read the full article to understand CORSIA requirements, procurement strategies, and the insurance and financing solutions that mitigate compliance risks.