IATA Urges Governments to Unlock Carbon Credits for CORSIA Compliance | By Obed Andoh | The International Air Transport Association (IATA), in collaboration with global carbon market stakeholders, has called on governments to urgently issue Letters of Authorization (LoAs) to address the critical shortage of carbon credits available for airlines under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
LoAs are official documents issued by host countries under Article 6 of the Paris Agreement. They confirm that emissions reductions linked to carbon credits will only be counted once—by airlines—through a corresponding adjustment to a country’s own Nationally Determined Contribution (NDC). Without these LoAs, airlines are unable to access eligible credits, threatening the implementation of CORSIA and depriving climate projects of crucial financing.
“CORSIA is a vital part of aviation’s global climate strategy. Through it, airlines mitigate their climate impact by funding verified emissions reductions in other sectors,” said Yue Huang, IATA’s Assistant Director for Climate Policy, during ICAO’s 42nd Assembly in Montreal. “To unlock CORSIA’s climate finance potential and ensure its contribution to aviation’s decarbonization, states must authorize the release of EEUs. That is one of our top messages to the 193 ICAO member states.”
The demand-supply imbalance is stark. IATA estimates airlines will require between 146 million and 236 million CORSIA-eligible emission units (EEUs) during the scheme’s first phase (2024–2026). However, the market is limited to just 15.8 million credits supplied by Guyana.
Adefunke Adeyemi, Secretary-General of the African Civil Aviation Commission (AFCAC), stressed the importance of African participation in unlocking CORSIA benefits: “Unlocking access to CORSIA-eligible units and attracting climate finance will enable Africa to show commitment to sustainability and shape global solutions with regional perspectives. This is about ensuring that our economies and operators benefit fairly from transitioning to a low-carbon future.”
The joint appeal is backed by major airline associations, including the African Airlines Association, Airlines for Europe, and the Association of Asia Pacific Airlines, as well as leading carbon market stakeholders and project developers.
Opportunity for Ghana and other African countries
For Ghana, the call presents an opening to position itself as a regional supplier of CORSIA-eligible carbon credits. With existing forestry, renewable energy, and clean cooking projects, Ghana could leverage LoAs to attract airline-backed climate financing, create new revenue streams, and boost its reputation as a sustainability leader in Africa’s aviation sector.
IATA has published guidance documents to accelerate uptake and offers tools and workshops to help states, including Ghana, quickly develop frameworks for issuing LoAs.
With demand far outpacing supply, industry leaders warn that timely government action across Africa, including in Ghana, will be crucial to both safeguarding the integrity of CORSIA and unlocking fresh financing for sustainable development.
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