KUALA LUMPUR, The International Air Transport Association (IATA) and carbon market stakeholders are urging governments worldwide to address the limited availability of carbon credits needed by airlines to meet their obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
In a joint statement released at the 42nd International Civil Aviation Organisation (ICAO) Assembly in Montreal, Canada, on Monday, the signatories called on governments to issue Letters of Authorisation (LoAs). These letters allow the release of CORSIA-eligible emissions units (EEUs) that airlines can purchase.
The statement highlighted that timely issuance of LoAs is crucial to creating a transparent and reliable market for CORSIA EEUs, ensuring the scheme’s successful implementation, and maintaining the environmental integrity of aviation’s climate commitments.
IATA forecasts that airlines will need between 146 million and 236 million EEUs during CORSIA’s first phase (2024–2026). Currently, only 15.8 million credits from Guyana are available, underscoring the urgent need for more LoAs. 
LoAs, issued by host countries, authorize the use of carbon credits (Internationally Transferred Mitigation Outcomes or ITMOs) under Article 6 of the Paris Agreement. They ensure emissions reductions are counted only once by applying a “corresponding adjustment” to the host country’s Nationally Determined Contribution (NDC). Without these letters, airlines risk a shortage of CORSIA-eligible credits, potentially undermining the scheme and limiting climate finance for project developers. To help countries issue LoAs, IATA has released guidance, practical tools, and workshops.
CORSIA aims to reduce global aviation CO₂ emissions. Malaysia has been voluntarily participating in the scheme alongside 104 other countries since July 2022 and has supported the inclusion of oil palm biomass in CORSIA Eligible Fuel Criteria since 2021.
