With carbon compliance moving further into the international aviation world, the choice to buy CORSIA credits is no longer only a sustainability matter; it has become a procurement and risk management task.
The monetary risks are substantial for airline CFOs and procurement teams: buying non-eligible credits could result in expensive replacement purchases, leave balance sheets vulnerable to the uncertainties of regulatory issues, and jeopardize budget predictability that is essential for flight operations.
This guide outlines the process for airlines and businesses to safely navigate carbon credit procurement, what to check before buying, and how to determine a credible supplier.
Eligibility First: Why Carbon Credits Are Not Interchangeable
CORSIA is a global market-based approach developed by the International Civil Aviation Organization (ICAO) for carbon emission reduction in international aviation. The scheme calls for airlines to offset a portion of their emissions growth through the purchase of approved carbon credits.
Not every credit on the market qualifies. The approved programs under the scheme include only certain categories of credits as “CORSIA eligible credits”. Purchasing the wrong units is not a simple administrative mistake — it’s returning to the market under pressure, and possibly at greater expense, to find suitable replacement units to comply with CORSIA regulations.
This is the fundamental risk for finance executives: The credit market offers a multitude of verified instruments, but only a certain number meet the criteria of being eligible for CORSIA. The mistake in procurement decisions is to consider them interchangeable.
Why You Can’t Afford to Skip the Eligibility Check
Before you finalize a deal to buy CORSIA credits, your procurement team must verify that:
- The crediting program is CORSIA-approved.
- The project falls within an eligible vintage period.
- CORSIA is split into two phases: Phase 1 (2021 – 2023) and Phase 2 (2024 – 2026), with separate vintage requirements for each of those phases, which means credits that are issued outside these windows cannot be used for the corresponding compliance period.
- Units meet the current eligibility criteria, which may change between compliance phases.
- Registry records support transparent ownership and retirement tracking.
- All required documentation, including authorization letters where applicable, is in order.
Eligibility verification should be done as rigorously as fuel sourcing or fleet acquisition. An approved credit is not a product; it’s a compliance instrument that has specific requirements of provenance.
The Audit Trail: Essential Documentation for Regulatory Due Diligence
Documentation is one of the most crucial measures when airlines seek to buy CORSIA credits. A reliable credit supplier must provide clear proof of the credit’s source, regulatory standing, and eligibility.
Registry documentation
Buyers should verify the availability of units in an approved registry and that ownership records are transparent. Typically, registry information contains serial numbers, project information, issuance dates, retirement status, and complete transfer history. When executing a verified carbon units purchase, this digital paper trail is your primary defense against double-counting.
Program eligibility information
Suppliers must submit recent evidence of the units offered to validate that they meet the applicable CORSIA requirements. Because the framework for CORSIA-eligible emissions units changes between compliance phases, buyers should verify eligibility criteria rather than relying solely on past classifications.
Letter of Authorization
The CORSIA Letter of Authorization (LoA) is one of the most important compliance documents that buyers might need for certain types of projects. This document demonstrates the formal endorsement by the host country for the emission reductions to be used for international mitigation.
For Aviation Compliance, the LoA is generally necessary if the corresponding adjustment is also included under Article 6 of the Paris Agreement, which requires the host country to include the emission reduction in its own national inventory, thus avoiding double counting.
Before proceeding with any purchase, buyers should confirm whether an LoA is required for the specific credits being acquired, and review that documentation carefully.
The Procurement Roadmap: Sourcing From Scramble to Strategy
To build a reliable approach to carbon credit procurement for airlines, teams must transition from reactive buying to a structured, phased framework.
- Define compliance requirements
Calculate expected offset obligations and timescales first. Take into account anticipated emissions exposure, regulatory deadlines, retirement schedules, internal approval requirements, and budgetary restrictions. This will decide required volumes and purchasing windows.
- Establish eligibility criteria
Before assessing suppliers, establish an internal checklist that includes approved programs, eligible project types, vintage period requirements, documentation requirements, and LoA requirements (if applicable). A well-defined framework minimizes the risk of inconsistent purchasing decisions across procurement cycles.
- Evaluate available supply
There are always various CORSIA credits for sale on the market regularly, but availability alone should not be the basis for a decision. Buyers should assess credit quality, documentation completeness, registry transparency, delivery capability, and counterparty credibility.
The long-term compliance security is always more important than any short-term price benefit, especially when replacement purchases have a cost premium and a reputational element.
- Conduct due diligence
Thorough due diligence is a non-negotiable step in the carbon procurement process. When you prepare to buy CORSIA credits, ask the supplier: Does the supplier have documented experience serving aviation clients? Are they able to show that they are being transparent in their sourcing? Will there be a pre-transaction review of registry records? Does the supplier make eligibility requirements known and express them clearly in writing?
Well-documented procurement decisions also make future audits and regulatory review easier; a practical consideration for any airline operating across multiple jurisdictions.
- Execute and maintain records
Once acquired, organizations should keep the following: purchase agreements, registry transfers, serial numbers, certificates of retirement, and compliance reporting documents. Maintaining accurate records minimizes operational risk and facilitates verification procedures for upcoming compliance periods.
Vetting Your Partner: What a CORSIA Supplier Must Deliver
Choosing a supplier can be one of the most critical decisions in procurement. An efficient CORSIA carbon credits supplier should provide more than just access to inventory, such as transparency, documentation support, and market expertise.
When assessing suppliers, consider whether they are knowledgeable about ICAO requirements and changing eligibility criteria, are willing to share credit origins and project-level detail, can supply supporting documentation promptly, and have experience supporting aviation clients through retirement and reporting.
We at Econetix focus on aviation compliance procurement and work with airlines to provide documentation support and registry transparency throughout the process instead of treating aviation carbon offset credits as a commodity buy-and-sell transaction.
One of the advantages that stands out to a procurement team’s due diligence evaluation is the breadth of projects in our portfolio and the regulatory framework we have established around it.
We are not just offering verified carbon credits from cookstove and solar lamp projects in the Democratic Republic of Congo – We have obtained Letters of Authorization for each project type, meaning the DRC government has issued official permission for these emission reductions to be used by airlines in support of Article 6 of the Paris Agreement.
It is the documentation standard outlined above, put into action by a supplier that is currently operating in the marketplace.
Six Compliance Traps That Drain Airline Budgets
- Selecting credits purely on price, without first ensuring all eligibility documentation is in order.
- Believing that because carbon credits have been verified, they are automatically eligible for use under CORSIA.
- Neglecting to check registry entries before purchase.
- Not accounting for the fact that specific projects demand a Letter of Authorization.
- Neglecting to develop a procurement strategy until closer to your compliance deadline
- Keeping poor records of transactions.
Turning CORSIA Compliance into a Cost Advantage
The decision to buy CORSIA credits ought to be viewed through the lens of compliance and risk management, not as a standard commodity transaction. Ensure credits are eligible, understand the rules surrounding vintage years, perform due diligence on all paperwork, and buy from a supplier that understands the aviation industry. Taking these precautions can help alleviate some of the risk and uncertainty of complying with CORSIA.
Just as CORSIA compliance will evolve through its different phases, so should your approach to meeting its requirements. Airlines and companies that take the time to plan and institute a robust procurement process will be better equipped to meet their obligations while avoiding uncertainty with their budgets and margins.
The process of determining eligibility, vintage periods and Letters of Authorization is complicated; but it doesn’t have to be your compliance risk to bear. We assist airlines and companies at various stages of buying carbon credits, from assessing eligibility to carbon documentation and transfers to various registries, from a portfolio of fully authorized projects, such as clean cook stove and solar lamp projects in the DRC.
If your team is planning ahead for CORSIA compliance or reviewing existing procurement arrangements, speak with our team directly.
Get the documentation clarity and supply confidence your compliance obligations demand — before the deadline pressure begins.
Frequently Asked Questions (FAQs)
What are CORSIA eligible credits?
Carbon credits approved by CORSIA’s recognized programs to be used by the airlines to offset their international aviation carbon emissions within a given compliance phase.
Why does the vintage period of a credit matter?
Vintage verification cannot be avoided prior to purchase of any credits that are issued outside CORSIA’s defined phase windows (Phase 1: 2021–2023; Phase 2: 2024–2026).
What is a Letter of Authorization and when is it required?
It is formal government consent that an emission reduction can be used under Article 6 of the Paris Agreement, and it is necessary for credits with a corresponding adjustment in the host country’s national inventory.
What happens if an airline purchases non-eligible credits?
The airline must re-enter the market with the objective of finding replacements that meet the requirements, usually at a premium and under deadline pressure.
How can airlines find a reliable CORSIA carbon credits supplier?
Choose a supplier whose projects are fully authorized and documented. We at Econetix exclusively specialize in aviation offsetting and hold Letters of Authorization from the government for our cookstove and solar lamp projects in the Democratic Republic of Congo.
