Two of Japan’s largest airlines have become the first to publicly retire carbon credits under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), marking a long-anticipated turning point in the aviation industry’s decarbonization efforts.
Late last week analytics platform MSCI Carbon Markets announced that the Architecture for REDD+ Transactions (ART) registry this week confirmed that Japan Airlines and All Nippon Airways canceled a batch of credits from the Guyana Jurisdictional REDD+ Project (ART102,) currently the only program that satisfies both the International Civil Aviation Organization’s Emission Unit Criteria and carries a corresponding adjustment from its host government. Those two features make the credits uniquely eligible under CORSIA.
At a Q2 2025 auction run by the International Air Transport Association, the credits sold for about $22.25 per metric ton of CO2e, with bids for the next quarterly auction still underway.
Airlines have dabbled in voluntary carbon offsets for years, offering passengers optional purchases or investing in forestry and clean-energy projects. But many have slowed or suspended offset buying amid scrutiny over project quality and a push toward sustainable aviation fuel (SAF). The Japanese carriers’ CORSIA participation suggests compliance activity may now be accelerating.
With the first verified retirements now on record, CORSIA’s once-theoretical framework is becoming a functioning marketplace that could redefine how airlines account for their climate footprints.
MSCI focused on CORSIA
According to MSCI’s 2025 CORSIA Outlook, global demand for eligible credits could reach 500 million to 1.3 billion tonnes between 2027 and 2035, with prices potentially climbing from $26 to as high as $124 per tonne as supply tightens.
MSCI, having expanded its carbon-markets division through its Trove Research acquisition, now tracks credit issuance, pricing, and eligibility to serve investors and regulators navigating this emerging compliance market.
