Imposing eligibility constraints on CORSIA offset credits could have significant impact on UN CDM, finds study

The UN’s Clean Development Mechanism (CDM) is likely to be a primary source of carbon credits for airlines seeking to offset the industry’s growth in CO2 emissions post-2020 under ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). However, slow demand for the credits – known as Certified Emission Reductions (CERs) – from registered CDM projects has led to a prolonged period of low prices, but CORSIA is likely to have a major impact on the market. A 2017 study estimated the potential demand for emission units at around 2.7 billion across the life of the scheme, which is due to run until 2035. A new analysis prepared for the German Emissions Trading Authority (DEHSt) finds that up to 3.8 billion new CERs could supply the market at prices below €1 per unit but recommends eligibility restrictions are required to drive up the price of CERs and incentivise new and vulnerable projects that could lead to real emission reductions. [...]

GreenAir Online

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