Boosting Aviation Carbon Credits: ICAO Greenlights Verra’s VCS Program for CORSIA Carbon Market

On December 12, Verra mentioned in its press release that The United Nations International Civil Aviation Organization (ICAO) has approved using the Verified Carbon Standard (VCS) Program during the first phase (2024–2026) of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

This decision marks a significant milestone for the emerging CORSIA carbon market. Subsequently, airlines with a vital new source of carbon credits can meet their aviation emissions mitigation mandates.

Additionally, ICAO released an updated Eligible Emissions Units document, outlining specific VCS credit categories and vintages approved for use in CORSIA’s initial phase.

Aviation’s Carbon Footprint Set to Soar by 2050

Air travel has become a major contributor to global carbon emissions. Climate experts predict it will be one of those toughest sectors to decarbonize in the coming decades. North America is expected to remain the top emitter, while Asia’s aviation market, driven by China and India, is projected to grow the fastest. The Asia-Pacific region overall is likely to reduce its gap with North America, solidifying its position as the second-largest emitter.

Statista has presented Bloomberg BNEF data showcasing aviation-related carbon emissions which are set for a sharp rise across all regions over the next 30 years. In 2019, North America generated an estimated 293 million metric tons of CO₂ from aviation, but it can exceed 440 million metric tons by 2050. The Asia-Pacific region trailed at 230 million metric tons in 2019 but is forecasted to reach 418 million metric tons by 2050.

• Globally, aviation emissions could reach nearly 2 billion metric tons by mid-century—almost 2X the pre-pandemic levels of 2019 and nearly 4X the emissions recorded in the 1990s.

Addressing this steep rise will require bold, innovative strategies to decarbonize air travel and mitigate its impact on climate change.

CORSIA’s First Phase: Expanded VCS Eligibility

With this approval, the number of Verified Carbon Units (VCUs) that may become eligible for CORSIA labels will get a significant boost. While most VCUs are covered under this decision, ICAO has excluded specific project types and methodologies.

What’s Included?

Here’s what remains eligible for Agriculture, Forestry, and Other Land Use (AFOLU) projects in REDD+ countries:

1. Small-scale projects: Those generating less than 7,000 tCO2e of reductions and removals annually.
2. Projects using specific methodologies: These include VM0012, VM0017, VM0021, VM0022, VM0024, VM0026 (and VMD0040), VM0032, VM0033, VM0036, VM0041, and VM0042.
3. “Nested” projects: Projects integrated into jurisdictional REDD+ accounting under Scenario 2a or Scenario 3 of Verra’s Jurisdictional and Nested REDD+ (JNR) Framework.

Additionally, Verra’s new REDD methodology (VM0048) has been made eligible for CORSIA’s first phase under these guidelines.

What’s Excluded?

Verra has raised concerns about certain exclusions in CORSIA’s first phase (2024–2026) eligibility rules, highlighting inconsistencies in how they’ve been applied across crediting programs. The organization is actively working with ICAO to address these issues in future eligibility decisions.

So, the key exclusions that are under review are:

1. Cookstove Methodologies

Credits from methodologies AMS-II.G. and VMR006 were excluded from the VCS Program but remain eligible under other programs using similar methods. Verra questions this inconsistency and urges ICAO to reassess these exclusions.

2. Carbon Capture and Storage (CCS)

Methodologies under sectoral scope 16, which includes CCS projects, have been excluded. While ICAO is still evaluating if carbon dioxide removal (CDR) activities meet CORSIA requirements, Verra emphasizes that CCS extends beyond CDR and plays a critical role in limiting global warming. Verra believes CCS projects meet CORSIA criteria and should be fully eligible, particularly in countries with ICAO-approved greenhouse gas programs covering these activities.

3. Certain AFOLU Projects

AFOLU (Agriculture, Forestry and Other Land Uses) projects not “nested” into jurisdictional REDD+ frameworks were excluded despite using advanced methodologies. Verra argues for stronger recognition of these projects’ high-quality accounting, particularly under methodologies like:

• VM0045 Methodology for Improved Forest Management Using Dynamic Matched Baselines from National Forest Inventories
• VCS Methodology VM0047 Afforestation, Reforestation, and Revegetation,
• VCS Methodology VM0048 Reducing Emissions from Deforestation and Forest Degradation.

Furthermore, Verra stresses the importance of fair and consistent eligibility criteria for CORSIA. By addressing these exclusions, ICAO can ensure better access to high-quality carbon credits and support impactful climate action in the aviation sector.

Mandy Rambharos, CEO, Verra noted,

• READ MORE: CORSIA Credits Soaring Costs: How They Are Reshaping Aviation’s Future

Source: ICAO

Article 6 Authorization and Updates for CORSIA

Verified Carbon Units (VCUs) from 2021 onward must have an “Article 6 Authorized – International Mitigation Purposes” label to qualify for use under CORSIA. This requirement aligns with the Paris Agreement’s mitigation framework. Verra’s Article 6 Label Guidance provides detailed information on these labels, and an updated version, reflecting decisions from COP29, will be released early next year.

Moving on, Verra is also finalizing additional assurance requirements. This will ensure there is no double claiming of mitigation outcomes for VCUs with vintages from 2021. These requirements will soon be published to guide project proponents in meeting the necessary standards.

Next Steps for Verra

Verra plans to release a new CORSIA Label Guidance document in the coming weeks. This document will provide details on several key updates, including:

• The VCS Program’s revised CORSIA eligibility.
• New labels differentiating between the pilot phase (2021–2023) and the first phase (2024–2026).
• Instructions for project proponents to request CORSIA labels for VCUs generated by their projects.

Additionally, the press release highlighted that the Verra Registry has already been updated to show these changes. This means VCUs with CORSIA labels from the pilot phase will be automatically updated to display the new label designations, ensuring consistency with the latest eligibility decisions. These steps aim to streamline the process and enhance clarity for stakeholders as CORSIA’s first phase progresses.

This approach offers more flexibility to airlines to meet CORSIA requirements and supports the global aviation industry’s efforts to carbon neutrality. Moreover, the expanded eligibility is expected to create more demand for VCUs while supporting credible emissions reduction efforts worldwide.

LATEST: Verra Unveils Guidance for ICVCM CCP Label on Carbon Credits

In another scenario, on December 13, Verra published a detailed guide to help project proponents apply the Integrity Council for the Voluntary Carbon Market (ICVCM) Core Carbon Principles (CCP) label to Verified Carbon Units (VCUs).

Verra mentioned,

The release of ICVCM CCP Label Guidance, v1.0 follows the ICVCM’s recent approvals of the Verified Carbon Standard (VCS) Program (May 2024), VCS Methodology VM0048 Reducing Emissions from Deforestation and Forest Degradation (November 2024), and VCS Methodology VM0047 Afforestation, Reforestation, and Revegetation (December 2024).

Automatic Labeling for Approved Projects

When the ICVCM approves a methodology, projects using it automatically receive the CCP label on their issued VCUs provided they meet all additional criteria. However, there are situations where projects may need to manually request the CCP label.

This includes cases where VCUs were not automatically labeled but still qualify for the label, or when a project updates its methodology to an ICVCM-approved version for past verification periods. To facilitate this process, Verra will launch a digital form for CCP label requests in 2025, accompanied by detailed instructions to guide users through the application process.

Updating to ICVCM-Approved Methodologies

Verra has released two guidance documents to streamline methodology updates:

• Methodology Change and Requantification Procedure, v4.0 allows projects to update their methodology or version for past verification periods.
• Procedure to Change Methodology through a Project Description Deviation, v4.0 helps projects transition to a different methodology or version for current and future monitoring periods.

With these updates, Verra aims to make it easier for projects to meet ICVCM standards, ensuring high-quality carbon credits while supporting global climate action. The new guidance provides the tools needed for projects to align with evolving standards in the voluntary carbon market.

• FURTHER READING: ICVCM Reveals First CCP-Approved Carbon Credits Worth 27M Carbon Credits

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