EU Eases CORSIA Carbon Credit Rules Amid Supply Crunch

The European Commission will withdraw additional carbon-credit quality criteria proposed for CORSIA Phase 1, as eligible supply remains far below expected airline demand. IATA estimates demand at 170–236 million tonnes, compared with around 40 million tonnes of labeled or pending-authorisation supply. The proposed rules could have excluded HFLD projects, including substantial Guyana supply, and restricted improved cookstove credits. However, the stricter requirements are expected to return in Phase 2 from 2027, potentially creating separate markets for EEA and non-European airlines. The decision eases immediate compliance pressure and may broaden Phase 1 supply, but uncertainty could delay airline purchasing. Continued Phase 2 constraints may produce significant price premiums for credits meeting Europe’s requirements.
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