The CORSIA market saw a notable development this week following the addition of significant new eligible supply from African clean cooking projects. These updates are improving near-term liquidity while reinforcing important trends in CORSIA Phase One supply.
4.7 Mt of New CORSIA EEU Supply Enters the Market
On Friday, four African clean cooking projects received CORSIA eligibility tags on the Verra registry, injecting approximately 4.7 million tonnes of CORSIA Eligible Emissions Units (EEUs) into the market. Looking ahead, these projects are expected to generate around 3 million tonnes of CORSIA-tagged credits annually, providing a meaningful and recurring source of Phase One supply.
With these additions, the total number of CORSIA-tagged projects now stands at seven, marking continued progress in the rollout of eligible credits under the scheme. While a large portion of the newly tagged volumes has already been contracted, some availability remains. Market participants interested in understanding remaining volumes or pricing dynamics are encouraged to engage early.
Further supply is expected to come through in Q1, supporting continued market activity and improved transactional depth.
Market Context: Improving Liquidity Amid Structural Constraints
The arrival of new African clean cooking supply provides welcome near-term relief to the CORSIA Phase One market. However, eligibility timelines, regulatory approvals, and the relatively limited number of qualifying projects continue to shape overall market dynamics.
As compliance demand builds, these factors are expected to remain key drivers of supply availability and pricing behaviour over the medium to long term.
Pricing Environment
As of early February, generic CORSIA Phase One contracts continue to trade within a relatively stable range. Pricing reflects a balance between the injection of newly tagged supply and steadily increasing compliance demand as airlines progress toward their Phase One obligations.
What This Means for Airlines and Buyers
For airlines preparing for CORSIA Phase One compliance, recent developments highlight several key considerations:
- Early engagement remains important, as newly tagged volumes are being absorbed quickly
- Project eligibility and timing matter, reinforcing the value of trusted market insight
- Forward planning is essential, given the relatively concentrated nature of eligible supply
Azzera continues to monitor registry updates, project eligibility developments, and pricing trends closely, supporting clients with transparent market intelligence and access to high-quality CORSIA-eligible supply.
If you would like to discuss current availability, pricing, or procurement strategies, the Azzera team would be pleased to connect.
