Wednesday, July 15, 2026

Global airlines plan to boost demand for African carbon credits

Date:

Connecting Skies and Stoves: How CORSIA Links Aviation Emissions to Clean‑Cooking Projects in Africa

When a Japanese businessman sips champagne at 30,000 feet, the contrails trailing his aircraft are part of a global effort to curb climate change. Half a world away, a Tanzanian family prepares dinner on a new, high‑efficiency stove that burns less firewood. Though the scenes seem unrelated, they are tied together by the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the first worldwide regulatory framework that obliges airlines to offset the carbon dioxide emitted on international flights.

The First Global Aviation Emissions Framework

Adopted by the International Civil Aviation Organization (ICAO) in 2016, CORSIA creates a market‑based mechanism for the aviation sector. Starting in 2024, operators must monitor and report CO₂ emissions from all international flights. By January 2028 they must surrender enough eligible carbon credits to cover any emissions that exceed the average of their 2024‑2026 baseline.

Unlike voluntary offset programs, participation is now a legal requirement for carriers flying between states that have volunteered to the scheme. This shift transforms carbon credits from a philanthropic gesture into a compliance commodity, giving the market a predictable source of demand.

How Japan Airlines Meets Its CORSIA Obligations

In March 2024 Japan Airlines (JAL) became the first carrier to announce a concrete pathway to satisfy its early CORSIA commitment. Through a partnership with Shell, JAL secured 180,000 carbon credits generated by two African projects:

  • 50,000 credits from BURN Manufacturing’s clean‑cooking stove initiative in Tanzania.
  • 130,000 credits from a forest‑protection program in Kenya.

Retiring a credit permanently removes it from circulation, ensuring that the climate benefit—avoided deforestation or reduced fuel‑wood consumption—can be claimed by a single entity. For JAL, the Tanzanian stove project translates into lower household firewood collection, which in turn cuts methane and black‑carbon emissions associated with open‑flame cooking.

Predictable Demand Sparks Investment

Douglas Greenwell, Carbon Commercial Director at BURN, describes CORSIA as a “big catalyst” for African carbon projects. The certainty of demand is a key factor:

  • Sylvera, a carbon‑data analytics firm, forecasts that the first CORSIA phase (2024‑2026) will require roughly 177 million eligible credits.
  • Only about 32 million credits currently meet ICAO’s strict eligibility criteria, suggesting a looming supply gap.
  • Airline budgeting indicates an expected cost of $18–$20 per tonne of CO₂ for compliance in the initial phase, compared with $2–$3 per tonne** for comparable cook‑stove projects in the voluntary market.

These dynamics create a strong incentive for project developers to invest in monitoring, verification, and reporting systems that meet ICAO’s standards, knowing that a buyer base with defined volume awaits.

What CORSIA Means for African Airlines

The scheme includes built‑in exemptions for flights to or from Least Developed Countries (LDCs) and for states contributing less than 0.5 % of global international air traffic. Consequently, many African nations are theoretically excluded from the offset requirement.

However, several countries have chosen to waive their exemptions voluntarily:

  • Egypt, Morocco, and South Africa have opted into CORSIA despite their LDC status.
  • Ethiopia presents a unique case: although classified as an LDC, its hub at Addis Ababa handles a sizable share of global traffic, so it will fall under CORSIA from 2027, with Ethiopian Airlines required to offset emissions starting in 2031.

The financial impact could be pronounced for African carriers. The International Air Transport Association (IATA) reports an average profit margin of just 1 % for African airlines, well below the global average of 3.9 %. Even modest cost increases from credit purchases could strain thin margins, prompting industry groups such as the African Airlines Association (AFRAA) to explore financing platforms that help carriers secure loans for compliance.

Lessons from Early Cook‑Stove Projects

Participating in the CORSIA market offers African developers a chance to scale climate‑friendly technologies, but the path is not without obstacles.

Storm Patel, Commercial Director at TASC (a carbon‑finance and project‑development firm), notes that ICAO’s eligibility standards are rigorous to preserve market integrity. Developers must:

  • Demonstrate additionality—proving that emission reductions would not have occurred without the carbon‑finance incentive.
  • Implement robust monitoring, reporting, and verification (MRV) systems that can withstand third‑party audits.
  • Ensure that projects avoid double counting and that credits are uniquely traceable.

While these safeguards bolster confidence among buyers, they also raise the upfront cost and technical complexity of project preparation. Patel cautions that if the standards prove too stringent, they could throttle the supply of credits just as demand from airlines begins to climb.

In summary, CORSIA is reshaping the relationship between high‑altitude travel and grassroots energy solutions. By turning a regulatory requirement into a market signal, the scheme is channeling airline compliance funds toward projects that cut firewood use, protect forests, and improve livelihoods in communities far from the airport runway. The success of this linkage will hinge on balancing strict integrity standards with the need to generate a sufficient, affordable supply of credits—a challenge that airlines, developers, and regulators are now navigating together.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

spot_img

Related articles

SARS wins Supreme Court battle over R10 million tax deduction for citrus growers

Background of the Dispute The South African Revenue Service (SARS) recently won a case in the Western Cape High...

How South Africa’s youth are adapting to a new financial reality

vFeenix and the Evolving Financial Landscape of South African Youth More than a decade after the nationwide Fees Must...

Western Cape Returns R821m to Treasury While Blaming Housing Failures on Under-Funding

Why Housing Numbers Are Dropping in the Western Cape The MEC’s Claim Western Cape MEC for Infrastructure Tertuis Simmers said...

In Ethiopia, Africa’s largest airport hub worth $12.5 billion

Groundbreaking for Africa’s Largest Airport When did construction start? Ethiopian Airlines announced that work officially kicked off on January 10, 2026. The...