Xpansiv, an infrastructure provider for global energy transition markets, has announced plans to launch its long-awaited CBL GEO® CORSIA First Compliance Phase (GEO CP1) standardised spot contract on 29 April.
The contract will be available for trading on Xpansiv’s CBL spot exchange and simultaneously on partner platforms, including the Aviation Carbon Exchange (ACE)—operated by CBL in partnership with the International Air Transport Association (IATA)—as well as the Johannesburg Stock Exchange’s JSE Ventures Carbon Market.
The launch aligns with the expansion of eligible emissions unit supply under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), following the late 2024 approval of additional standards and methodologies by the advisory body to the United Nations’ International Civil Aviation Organization (ICAO). ICAO has projected a demand of 100 to 150 million tonnes of CORSIA Eligible Emissions Units (EEUs) during the scheme’s first compliance phase.
“This marks a pivotal moment in the integration of voluntary and compliance carbon markets,” said John Melby, Chief Executive of Xpansiv. “Our GEO CP1 contract was developed after extensive industry consultation, with consensus pointing to the need for both a reliable supply and regulatory clarity—both of which are now in place.”
The launch follows a series of recent Phase 1 CORSIA procurement events held by IATA, the Government of Guyana, Mercuria, and Xpansiv through the ACE. The most recent event, which concluded on 21 March, saw EEUs priced at $22.25 per tonne. To date, the ACE has facilitated the sale of CORSIA-compliant credits to 15 airlines, with over 35 carriers participating in procurement events, which will continue on a quarterly basis.
Marie Owens Thomsen, IATA’s Senior Vice President for Sustainability and Chief Economist, welcomed the new contract said, “Standardised instruments are essential for developing the EEU market, a cornerstone of the CORSIA programme. Listing the GEO CP1 contract on ACE will provide airlines with transparent price signals for budgeting and procurement.”
The GEO CP1 contract will closely follow the CORSIA eligibility criteria. Upon launch, deliverable EEUs will be sourced from leading carbon registries including ART TREES, ACR, the Climate Action Reserve, Gold Standard, and Verra. As additional registries gain approval and apply CORSIA-eligible tags, their units will also become deliverable through Xpansiv’s Connect portfolio management platform.
An innovative sub-account mechanism, developed during IATA’s procurement events, will also be integrated into GEO CP1. This structure enables participants to engage in trading without the need for direct accounts with each standard issuing eligible EEUs.
Xpansiv’s original CBL GEO contract, introduced in 2020, supported the pilot voluntary phase of CORSIA and was widely adopted across sectors beyond aviation. In 2021, CME Group launched a futures contract based on this spot instrument. Since then, over 250 million tonnes of carbon have been transacted through the pilot-phase GEO spot and futures markets.
