CORSIA Phase One carbon credits are part of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), managed by the International Civil Aviation Organization (ICAO). This scheme requires airlines to monitor, report, and offset their emissions to help manage the environmental impact of international flights.

Phase One features the approval of six carbon credit standards, including Winrock International's American Carbon Registry and Architecture for REDD+ Transactions without exclusions, in addition to the Climate Action Reserve, and Verra's VCS program conditionally approved. Genuine emission reductions by avoiding double counting and aligning with the Paris Agreement, influence both the demand and pricing in the voluntary carbon market. Airlines must strategically align their credit purchases with these standards to meet CORSIA compliance, highlighting the broader implications for market dynamics and pricing as these credits become benchmarks for quality, impacting both airline and non-airline credit buyers.

 

Rule Chapter	1400
Contract	CORSIA Phase One
Product ID/Commodity Code	CP1
Contract Unit and Delivery Unit	100 tCO2e of Eligible CORSIA Phase One
Unit of Measure	tCO2e
Trading Hours (All time Singapore)	Monday through Friday Pre-open session: 0930 hrs to 1000 hrs Normal Market Session: 1000 hrs to 2400 hrs
Minimum Price Movement	USD 0.01 per tCO2e
Listed Contracts	Up to 14 contracts (comprising at least three December contracts and any number of serial (non-rolling) monthly contracts for January through November
Settlement Method	Physical Delivery
Termination of Trading/Last Trading Day	The second Business Day preceding the Delivery Date
Delivery Dates	The first Business Day of the Contract Month that is not preceded by a US bank holiday, else it will be the next Business Day that is not preceded by a US bank holiday.
Reportable Level	25 Lots
Position Limits (Spot Month)	1,000 Lots
Position Accountability Levels (any/all month)	5,000 Lots
Price Limits	Fixed price limits which will be published via circulars
Block Trade Minimum	5
Final Settlement Price	Price determined by the Exchange on the Last Trading Day. The Final Settlement Price is the basis for delivery.
Settlement Price Period	Daily Settlement Price: 2225-2230 hrs SGT Final Settlement Price: 2200-2230 hrs SGT