The International Civil Aviation Organization (ICAO) has released a key report on ‘Eligible Emissions Units,’ officially listing Global Carbon Council (GCC) as an approved program for issuing Approved Carbon Credits (ACCs) compliant with Carbon Offset and Reduction Scheme for International Aviation (CORSIA) for Phase 1 compliance cycle. This approval enables GCC to supply CORSIA Eligible Emission Units for the 2021-2023 compliance period (pilot phase) and 2024-2026 compliance period (first phase). The project eligibility includes the activities that started their first crediting period from 1 January 2016 and in respect of emissions reductions that occurred through 31 December 2020 under pilot phase and from 1 January 2021 through 31 December 2026. GCC has been approved without any pre-condition for application of corresponding adjustment.
GCC’s Full Approval Marks a Significant Milestone
Following a crucial decision by the ICAO Council in October 2024 during its 233rd session, GCC has achieved full approval under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Phase 1. Initially granted conditional approval in December 2023, GCC is now fully authorized to issue ACCs that international airlines can use to meet their offset obligations under Phase 1 of CORSIA.
As the only carbon offsetting program from the Global South approved under both the CORSIA Pilot and Phase 1 compliance periods, GCC’s unique position underscores its commitment to environmental integrity and sustainable development, connecting regions in the fight against climate change.
Positioning GCC in the Carbon Credit Market
With this approval, GCC is well-positioned to meet the increasing demand for compliance-grade ACCs. These ACCs, classified as OIMP (Other International Mitigation Purposes) under Article 6.2, are authorized by host countries, making them vital for compliance markets and offering international airlines certainty to comply with the offsetting requirements under CORSIA. This recognition enhances the market value of ACCs while creating new opportunities for global emissions reductions. It also helps ensure that crucial climate finance supports countries striving to meet their Nationally Determined Contributions (NDCs).
The Buffer Strategy: Securing Future Confidence
The buffer approach in carbon markets sets aside a reserve of carbon credits as a safeguard against unexpected risks, such as due to revocation of host country letter of Authorization or denial or non-application of corresponding adjustment by host country of the project activity . For airlines, this approach increases predictability by guaranteeing a reliable pool of ACCs are available for cancellation, ensuring continued compliance with carbon reduction targets under CORSIA phase 1. Additionally, this method helps eliminate double counting by reinforcing transparency and ensuring accurate tracking of emissions reductions. With this approval, GCC program has been allowed by CORSIA to apply 15% buffer deduction prior to issuing the C+ label for Phase 1. This brings certainty to airlines, ensuring that GCC-issued carbon credits for CORSIA Phase 1 are free from the risk of corresponding adjustments, offering a reliable, risk-free solution for buyers and airlines.
GCC’s Role in Phase 1 and Beyond
The Phase 1 (2024-2026) approval under CORSIA allows projects which have been issued ACCs with vintages from 2021 to 2026, with renewable energy (RE) projects capped at 15 MW, to be available for CORSIA Phase 1 compliance.GCC Program has developed regulations and methodologies for Carbon Capture and Storage (CCS) and Nature-based Solutions (NbS) projects, further expanding the scope and GCC program will seek approval from CORSIA Technical Assessment Body (TAB) and ICAO Council, techniocally called as ‘Material Change Requests’, in first quarter of next year.
