Guyana to sell first eligible carbon credits under airline emissions scheme

Guyana will make the first eligible carbon credits available to airlines to counter pollution under the start of a landmark U.N. emissions deal, a government official told Reuters on Wednesday, in what some industry groups fear will be a rare offering. Almost 5m credits that support the South American country's rainforests can be purchased by airlines to cover their obligations during the first phase of the UN-brokered CORSIA deal which starts this year, said Pradeepa Bholanath, a director at Guyana's Ministry of Natural Resources. Airlines now buy carbon credits voluntarily. Under the 2016 CORSIA deal approved by the UN ICAO assembly, carriers from more than 100 participating countries would have to offset rising emissions above the baseline of 85% of 2019 levels. Airline trade group IATA expects that threshold will be crossed this year, with ICAO projecting 2024 passenger air traffic levels to be around 2% higher than in 2019. With sustainable aviation fuel (SAF) from products like used cooking oil in short supply, airlines are largely relying on offsets to counter emissions, as they face opposition to pollution from flights. But with few eligible credits now available for airline purchase under CORSIA's first phase from 2024 to 2026, some industry groups fear a looming supply shortage. Countries have been asked to take steps to prevent so-called "double claiming," where credits supporting projects bought by airlines are not also used to meet national obligations under the Paris Agreement on climate change.<br/>