New partnership with the United Nations aviation agency to provide information on the carbon offset market
August 3, 2021 | As more than 100 countries join the pilot phase of a new international carbon offsetting mechanism for the aviation industry, the International Civil Aviation Organization (ICAO) and the Ecosystem carbon offsetting trade reporting initiative Marketplace have entered into a new partnership aimed at facilitating the transparency of the transaction of carbon credits eligible for airline compensation under the ICAO Carbon Offsetting and Reduction Program for International Aviation (CORSIA).
âTransparency has been fundamental in the design and implementation of CORSIA since its inception, and the ICAO Council welcomes this ecosystem market agreement aimed at meeting its expectations for data and reliable analyzes on the state and evolution of the associated carbon markets â, underlined the President of the Council of the ICAO. Mr. Salvatore Sciacchitano. âAs things move forward, we see CORSIA and other ICAO initiatives contributing to more and more voluntary commitments by aviation stakeholders to ambitious climate goals, including net zero targets. “
Through ICAO, States have agreed to an ambitious goal of carbon neutral growth from 2020. CORSIA contributes to the achievement of this goal, by complementing a broader set of emission reduction measures. CO2 emissions from aviation, such as technological innovations, operational improvements and sustainable fuels. International aviation currently represents less than two percentt of global CO2 but emissions from international air transport are expected to increase dramatically over the next decades. The climate impacts of aviation, with the exception of international air traffic, are addressed within the framework of the commitments made by States under the Paris Agreement. To complement their Paris Agreement goals, states have also committed to tackling emissions from international air traffic through agreements facilitated by ICAO, a United Nations agency.
CORSIA sets a benchmark for emissions from international air traffic and requires airlines to offset emissions exceeding this benchmark by purchasing high-quality offsets subject to strict eligibility criteria. It is part of a larger set of measures aimed at achieving ICAO’s ambitious global goals for international aviation.
“We are encouraged by this new partnership, which marks an important milestone for Ecosystem Marketplace and the aviation industry,” said Stephane Donofrio, director of the Ecosystem Marketplace. âAs a global system governed by a regulatory compliance model, market data resulting from CORSIA will provide important insights as carbon markets continue to evolve. The transparency resulting from this agreement will play an important role in the sector’s path to decarbonization, including as additional voluntary efforts emerge. ”
Ecosystem Marketplace (EM), an initiative of the non-profit organization Forest Trends, acts as a market intelligence and public information platform to ensure transparency and integrity, from offering to Requirement. EM’s new Global Carbon Hub, launched in early 2021 in response to growing demand for market data, has expanded information services to include a dynamic near real-time data dashboard and meta-ledger.
Thanks to the new partnership, EM will leverage its 16 years of experience reporting carbon trading prices and volumes to deliver new market data for offsets eligible for the ICAO Aviation Carbon Offsets and Reduction Program international (CORSIA). ICAO will use this information to regularly inform States and the general public as part of the Organization’s efforts to improve transparency and market confidence in the implementation of CORSIA. From the third quarter of 2021, the ICAO will integrate the Ecosystem Marketplace the data of the emission units eligible for CORSIA in its CORSIA public site and the monthly CORSIA newsletter shared with 193 Member States. Ecosystem Marketplace will also make data available on its Global Carbon Hub Intelligence and data analytics dashboard.
âICAO and its Member States would benefit from the information and analysis related to the carbon market and CORSIA provided by Ecosystem Marketplace, a third-party neutral, not-for-profit organization,â said ICAO Director, Air Transport Bureau. , Mohamed rahma.
“Forest Trends ‘position has long been that carbon markets and other forms of climate finance need transparency and integrity if they are to deliver real results at the scale needed to meet Paris’ ambitions.” , said Michael jenkins, CEO and Founding President of Forest Trends. âI am delighted to be embarking on this new partnership with ICAO.
Ecosystem market (www.ecosystemmarketplace.com) is an initiative of the non-profit organization Forest Trends and a leading global source of information on environmental finance, markets and payments for ecosystem services. As a web service, Ecosystem Marketplace publishes newsletters, late-breaking news, original feature articles, and annual reports on market-based approaches to valuing and funding ecosystem services. We believe that transparency is a hallmark of robust markets and that by providing accessible and reliable information on pricing, regulation, science and other issues relevant to the market, we can contribute to market growth, catalyze new ideas and stimulate the development of new markets and the policies and infrastructure needed to support them. Ecosystem Marketplace is financially supported by a diverse set of organizations, including multilateral and bilateral government agencies, private foundations, and companies involved in banking, investing, and various ecosystem services.
A specialized agency of the United Nations, ICAO was created by governments in 1944 to support their diplomacy on international air transport matters. Since then, countries have adopted more than 12,000 standards and practices through ICAO, which help align their national regulations relating to the safety, security, efficiency, capability and protection of the aviation environment, thus enabling the creation of a truly global network. ICAO forums also provide opportunities for advice and advocacy to be shared with government decision-makers by industry groups, civil society NGOs and other officially recognized air transport stakeholders.
Media contact: GeneviÃ¨ve Bennett, +1 202 298 3007, [email protected]