Airlines face rising Corsia costs as 2027 offset demand hits 79MT: IBA
With limited eligible supply and increasing demand, offset prices could surge to $25–$60 per tonne by the late 2020s, according to MSCI.
IBA estimates that carriers such as Emirates could face Corsia-related compliance costs of up to $346 million in 2027, equivalent to 3.5 per cent of its projected fuel budget.
According to insights from IBA's NetZero platform, the top 10 airlines will be responsible for offsetting 29MT of emissions in 2027 alone.
This increase is driven by stronger participation in Phase 2 of CORSIA, alongside rising international air traffic.
IBA's forecast aligns with IATA's 'Upper Bound' growth factor of 21.8 per cent above 2019, with Corsia obligations based on 85 per cent of 2019 emissions.
The burden is especially high in newly mandated regions such as Asia-Pacific, where India and China's compliance from 2027 could drive 27MT of offset-eligible emissions.
While demand rises sharply, supply remains constrained. Only credits from ICAO-approved programs with valid Letters of Authorisation (LoAs) and host-country adjustments qualify.
As of mid-2025, just ~1,500 of 4,000+ eligible projects are in jurisdictions prepared to issue LoAs. Currently, only one Reducing Emissions from Deforestation and Forest Degradation (REDD+) programme in Guyana has issued Corsia-authorised credits (approximately 15.8M).
REDD+ is an UN-backed framework that generates carbon credits by protecting and sustainably managing forests.
Even with optimistic scaling of new mechanisms like jurisdictional REDD+ (J-REDD+) and the Paris Agreement Crediting Mechanism (PACM), IBA forecasts that total supply before 2027 is unlikely to exceed 136 million credits, which is barely enough to cover Phase 1 demand.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
3 hours ago
- Zawya
Dubai Municipality engages Al Barsha residents in designing parks that meet community needs
Dubai, United Arab Emirates: Dubai Municipality's leadership, headed by His Excellency Eng. Marwan Ahmed bin Ghalita, Director General of Dubai Municipality, met with residents of Al Barsha in an open, on-the-ground dialogue session. The meeting aimed to hear residents' proposals for new parks and green recreational spaces that address daily needs, reflect community aspirations, and contribute to enhancing quality of life. From idea to reality – powered by residents' voices During the meeting, the Municipality's Public Facilities Agency presented plans to develop two parks and a central recreational space covering more than 31,000 square feet. Residents shared their preferences to directly shape the design process, from safe play areas for children and running tracks for athletes, to family seating spaces, cycling lanes, and accessible facilities for all. Community voice as the compass H.E. Eng. Marwan Ahmed bin Ghalita stressed the importance of field engagement, stating: 'Our citizens are our priority, and their voice is the foundation of any successful project. We do not just design parks on paper; we design them with the people and for the people, ensuring every individual feels the space is part of daily life and offers advanced well-being for the whole community.' Beyond parks – improving building systems The discussion also addressed construction activity in the area, with updates on efforts to enhance and develop building systems, regulate housing rentals, and improve accommodation standards for bachelors, ensuring integrated urban development in Al Barsha. Services that reach residents' doorsteps Municipal leaders highlighted initiatives designed to enhance customer experience, including the 'Happiness Vehicle', which visits citizens' homes to complete digital transactions, and the 'Virtual Appointment System' enabling direct communication with Dubai Municipality leadership from anywhere. The meeting concluded with Dubai Municipality reaffirming its commitment to ongoing community engagement and collaboration on projects that make Dubai more beautiful, liveable, and enriching every day. For Media Inquiries, Please Contact:
UAE Moments
6 hours ago
- UAE Moments
The Powerhouse of Investment
Stop Telling People to 'Just Save More Money' – Here's the Real Hot Take We've all heard it. The go-to, seemingly universal financial advice: 'Just save more money.' It sounds simple, responsible, and… frankly, a little lazy. While the intention is good, this oversimplified mantra often overlooks a crucial point and can even lead people to financial disappointment in the long run. My hot take? Your savings rate is only half the battle. The real game-changer is your investment strategy. Think about it. You diligently squirrel away every extra dollar, proud of your growing savings account balance. But what's that money doing? In today's economic climate, with inflation stubbornly eroding purchasing power, simply hoarding cash can be a surprisingly ineffective strategy. That dollar you diligently saved last year buys less this year. It's a silent erosion of your financial future. The Myth of the Mattress (and Low-Yield Savings) Stashing cash under your mattress (or in a low-interest savings account that barely keeps pace with inflation) is akin to treading water while the current pulls you backward. Your nominal balance might increase, but its real value – what it can buy – diminishes over time. Inflation is the silent thief of your savings. The Powerhouse of Investment This is where the often-overlooked 'I-word' comes in: investing. A well-crafted investment strategy, tailored to your risk tolerance and time horizon, offers the potential to outpace inflation and grow your wealth exponentially through the magic of compounding. Beating the Inflation Beast: Investing in a diversified portfolio of assets like stocks, bonds, and even real estate provides the opportunity for your money to grow at a rate that historically surpasses inflation. This is how you truly build and preserve wealth. Compounding: The Eighth Wonder: Albert Einstein supposedly called compound interest the 'eighth wonder of the world.' When your investments generate returns, and those returns are reinvested, they start earning their own returns. Over time, this snowball effect can dwarf the impact of simply saving more. Strategic Risk vs. Stagnant Safety: Yes, investing involves risk. But staying entirely in cash also carries a significant risk – the certainty of losing purchasing power to inflation. A thoughtful investment approach involves understanding and managing risk, not avoiding it altogether. It's Not Just How Much You Save, But Where You Grow So, the next time someone tells you to 'just save more money,' gently push back. Explain that while saving is fundamental, it's the strategic allocation of those savings into appreciating assets that truly builds long-term financial security. Here's the real advice: Establish a Budget: Know where your money is going. Save Consistently: Make saving a non-negotiable part of your financial routine. Educate Yourself on Investing: Understand different asset classes and investment strategies. Develop an Investment Plan: Tailor it to your goals, time horizon, and risk tolerance. Start Investing Early (Even Small Amounts): Time in the market beats timing the market. Review and Adjust: Your financial situation and goals will evolve, so your investment plan should too. Let's shift the conversation from the simplistic 'save more' to the more empowering and effective 'invest strategically.' Your future self will thank you.
Khaleej Times
11 hours ago
- Khaleej Times
Air Arabia Abu Dhabi launches seasonal flights to Yekaterinburg, Russia
Air Arabia Abu Dhabi has launched seasonal flights between Abu Dhabi and Yekaterinburg, Russia. The service will operate twice weekly from 27th October 2025 to 27th March 2026, connecting Zayed International Airport and Yekaterinburg's Koltsovo International Airport. Yekaterinburg is the fourth-largest city in Russia, the largest city in the Ural Federal District, and one of Russia's main cultural and industrial centres. Last month, the airline expanded its operations in Pakistan with increased flight frequencies to two key cities — Faisalabad and Multan. The increase in capacity further strengthens air connectivity between the UAE and Pakistan, reinforcing the airline's commitment to offering affordable, reliable, and convenient travel options to its growing customer base. As part of its broader growth strategy, Air Arabia Abu Dhabi plans to add two more aircraft to its fleet before the end of the year, enhancing its operational capacity and supporting the launch of new routes as it continues to grow its network across key markets. Customers can now book their flights by visiting Air Arabia's website, calling the contact center, or through preferred travel agencies. Air Arabia Abu Dhabi operates a modern fleet of 12 Airbus A320 aircraft, recognised globally as the world's best-selling single-aisle aircraft. Designed to deliver a comfortable and value-driven experience, each aircraft is equipped with SkyTime, Air Arabia's complimentary in-flight streaming service, and SkyCafe, which offers a wide selection of snacks and meals at affordable prices.
