The International Civil Aviation Organization (ICAO) has approved two World Bank-managed carbon crediting programs to supply eligible carbon offsets under the second phase of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
The decision grants eligibility to the Forest Carbon Partnership Facility (FCPF) and the BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL) for the 2027–2029 compliance window. The move follows their initial approval for CORSIA’s first phase earlier in 2026.
CORSIA operates as a global market-based framework designed to mitigate carbon dioxide emissions from international aviation. Under the mechanism, participating airlines must purchase and cancel verified carbon credits to offset emissions exceeding defined baseline thresholds.
Key operational, market, and regulatory developments include:
- Extended compliance horizon: Extends qualifying eligibility for FCPF and ISFL credits through the 2027–2029 operational phase, subject to technical integrity and social safeguards.
- Expanded program roster: FCPF and ISFL represent two of four newly approved crediting schemes, increasing the total number of ICAO-approved CORSIA programs from four to eight.
- Capital access for host nations: Enables participating countries to sell verified forest carbon reductions directly to commercial airlines, unlocking private capital for climate-smart development.
- Environmental integrity safeguards: Eligible credits must meet CORSIA’s criteria to ensure permanent, non-duplicated, and verified greenhouse gas mitigation.
The approval expands structural demand for sovereign and regional forest carbon credits, connecting developing nations to global compliance markets within the aviation sector.
