A v ia tio n C a rb o n Exc h a n g e f o r C O RSIA O f f se t C o - - PowerPoint PPT Presentation

A v ia tio n C a rb o n Exc h a n g e f o r C O RSIA O f f se t C o m p lia n c e

CORSIA

will be generated in climate finance by 2035

$40b

tonnes of CO2 will be mitigated by 2035

2.5b

2019

Carbon Offsetting and Reduction Scheme for International Aviation All Airlines flying internationally have an

• ffset obligation and need to procure

carbon credits stemming from globally developed offset projects. In addition to CORSIA, an increasing number of airlines have made voluntary commitments, e.g. to be carbon neutral from 2020.

Binding standards apply since 1 January 2019

Who will be affected by offset compliance?

• All airlines operating international

flights between countries that are subject to CORSIA.

• ~1,000 airline operators
• Pax/cargo/business jet operators
• Annual offsetting requirements =

160m t CO2 or 2.5 bn USD (annual average )

Eligible emissions units

Only emissions units (carbon credits) that meet specific environmental criteria will be eligible under CORSIA. E xisting c omple xitie s:

• Lack of carbon market experience
• What to buy? Type of credits?
• Complex bilateral agreements
• Lots of players in the market
• Lack of price transparency
• Financial counterparty risk

Airline s c o uld c ho o se to wo rk with pro je c t de ve lo pe rs, b ro ke rs, inte rme dia rie s a nd fue l pro vide rs, to so urc e c a rb o n o ffse ts. Ho we ve r, e a c h purc ha se re sulte d in a

se par ate pur c hase agr e e me nt.

As ma rke ts ha ve g ro wn, it b e c a me mo re diffic ult to unde rsta nd the pr

ic ing of c r e dits, a nd la c ke d tra nspa re nc y in

te rms o f what is available in the mar

ke t.

Car bon c r e dit pr

• c ur

e me nt be for e ACE was launc he d

On Ja nua ry 30, 2020, I AT A a nd CBL Ma rke ts a nno unc e d a pa rtne rship to de ve lo p the Avia tio n Ca rb o n E xc ha ng e (ACE ). T he ACE is a c e ntra lize d ma rke tpla c e tha t he lps a irline s ide ntify, se le c t, a nd tra nsa c t CORSI A e lig ib le e missio n units via a single sc r

e e n.

Ac c e ssing the Mar ke ts via ACE

What has c hange d sinc e ACE ?

• Ac c e ss: All CORSI

A-e lig ib le e missio n units o n o ne de dic a te d sc re e n

• Simplic ity: E

a sy-to -use e le c tro nic inte rfa c e , sing le ve nue

• Ab ility to se le c t b y pro je c t type , sta te / re g io n, sta nda rd, o r vinta g e
• L

inks to pro je c t info rma tio n dire c t fro m sc re e n

• Se c ure T

ra ding : E

le c tro nic c le a ring a nd minima l se ttle me nt time a nd de live ry o f pro duc ts a nd funds, e limina ting c o unte rpa rty risk

• L

e ve ra g e : T

ra de dire c tly with a wide ra ng e o f pa rtic ipa nts (inc luding b ro ke rs, inte rme dia rie s, pro je c t de ve lo pe rs) o n a sing le sc re e n, re mo ving the ne e d se pa ra te a g re e me nts.

• T

ra nspa re nc y: T

he e xc ha ng e pro vide s pric e tra nspa re nc y a nd liq uidity a c ro ss the vo lunta ry a nd ma nda to ry c a rb o n ma rke t.

ACE Mar ke t Be ne fits

• Conne c tivity: T

he e xc ha ng e e le c tro nic a lly inte rfa c e s with re g istrie s to fa c ilita te se a mle ss tra ding o f pro duc ts

• Ame ric a n Ca rb o n Re se rve (ACR), Clima te Ac tio n Re se rve (CAR), Go ld Sta nda rd (GS)
• Ve rifie d Ca rb o n Sta nda rd (VCS/ Ve rra ), UNF

CCC Cle a n De ve lo pme nt Me c ha nism (CDM)

• Sa fe & Se c ure Se ttle me nt: Se a mle ss a nd se c ure in-fund tra ding fo r a irline s using the

IAT A Invoic ing a nd Cle a ring House syste m.

• Ma rke tpla c e T

ra ding : Po ssib ility to switc h b e twe e n ma rke tpla c e s, e .g . b e twe e n

de dic a te d CORSI A-e lig ib le e missio ns ma rke t a nd o the r ma rke ts tha t fulfil ma nda to ry

• ffse t o b lig a tio ns o r vo lunta ry o ffse tting de ma nd.
• Sha ping the Industry Solution: Pilo t me mb e rs will pro vide va lua b le g uida nc e to b o th

I AT A a nd CBL to impro ve the ACE de sig n.

T he ACE te a m c a n fa c ilita te a live de mo nstra tio n o f the ACE , in o rde r to a llo w the ke y sta ke ho lde rs within a n a irline to fa milia rize the mse lve s with the fe a ture s o f the e xc ha ng e . T he o b je c tive is to pro vide the a udie nc e with a n o ve rvie w o f ho w to ide ntify, se le c t, a nd tra nsa c t CORSI A e lig ib le e missio n units with the c lic k of

a button.

ACE De mo

• ACE

is fre e fo r Airline s to jo in

• ACE

is a pric e disc o ve ry to o l

• ACE

is a n industry so lutio n b y the industry, fo r the industry

• ACE

c a n b e use d b y a irline s to pre pa re fo r CORSI A c o mplia nc e o r vo lunta ry c a rb o n o ffse tting .

Be ne fits of Joining the ACE !

T HANK YOU.