Ask the Experts: CORSIA Insights for Airlines

Title: {Ask the Experts: CORSIA Insights for Airlines - Episode 2}

Video duration 4:29 minutes

Description

Milind Pasad explains what airlines should consider as the CORSIA Phase 1 market evolves and as they navigate CORSIA-eligible emission units, also known as CEEUs.

The video covers supply and demand signals, new ICAO-approved programmes, pricing indicators, potential European Union requirements, and three supplier capabilities that can help

Ask the Experts: CORSIA Insights for Airlines – Episode 2 Transcript

[Background music plays]

 {Bright, uplifting music}

[Visuals]

The video opens outdoors with Milind Pasad walking near a modern office building. A lower-third graphic identifies him as Milind Pasad, Global Team Lead for Environmental Markets Origination. The scene changes to a talking-head interview setup inside a bright office with windows and plants behind him.

[Conversation / speech]

Speaker title: Global Team Lead for Environmental Markets Origination

Speaker: Milind Pasad

Hello, I’m Milind Pasad. Global Team Lead for Environmental Markets Origination. Welcome to another episode of Ask the Experts, where we break down what matters most for CORSIA Phase 1 and help airlines navigate CORSIA-eligible emission units or CEEUs.

Market update

[Visuals]

The speaker continues from the office. Supporting footage shows an airport apron at dusk with parked aircraft and terminal buildings. Yellow on-screen labels display “ISFL” and “FCPF” next to the speaker. A line chart titled “ICE CP1 Prices” appears next to him as he discusses pricing trends.

[Text displays]

ISFL; BioCarbon Fund Initiative for Sustainable Landscape. FCPF; Forest Carbon Partnership Facility. ICE CP1 Prices.

[Conversation / speech]

Since our last video, the CORSIA market has continued to evolve in a more complex operating environment, shaped in part by broader geopolitical developments.

On the supply side, eligibility is expanding with ICAO approving two additional programmes: BioCarbon Fund Initiative for Sustainable Landscape, or ISFL, and Forest Carbon Partnership Facility, or FCPF, both of which are World Bank sponsored programmes.

However, deliverable supply remains tight. The host-country authorisation issues affecting a large cookstoves project developer are a reminder that bringing CORSIA-deliverable supply to market, at scale, is still challenging.

Participation by airlines, representing demand, is still developing. This is demonstrated by large retirement of CEEUs by Japan Airlines and Singapore Airlines to meet Phase 1 obligations.

Pricing trends reflect a push and pull between limited growth in supply and still-muted demand, as only a small number of countries have announced penalties for non-compliance.

Pricing signals and Europe

[Visuals]

The speaker is shown in alternating camera angles. Yellow text highlights the “IATA-Xpansiv Procurement Event,” followed by a red price marker reading “$17.50.” Additional visuals include an airplane wing above clouds, people reviewing data at a table, and a bright sky with clouds.

[Text displays]

IATA-Xpansiv Procurement Event. $17.50. Conditions could tighten quickly. Securing trusted supply that delivers at the point of compliance.

[Conversation / speech]

The recent IATA-Xpansiv Procurement Event for the Improved Cookstove project clearing around 17 dollars and 50 cents suggests a potential premium for near-term supply and named projects.

For now, prices are now looking to demand for direction as clarity on penalties and compliance timelines comes into focus.

Looking ahead, Europe is a key signpost. The European Union is expected to clarify whether it will impose additional eligibility requirements on CEEUs to be retired by EU-domiciled airlines.

If imposed, this would signal EU’s determination to enforce CORSIA obligations but it could restrict the supply of “EU-acceptable” units as deadlines approach.

However, if clarification is delayed, near term activity could remain cautious while potentially increasing the risk of a later rush for compliant supply.

Either way, conditions could tighten quickly, either as clarity triggers immediate action, or as delayed enforcement concentrates demand closer to compliance deadlines.

In a tightening market, the risk isn’t just higher prices, it’s securing trusted supply that delivers at the point of compliance.

How should airlines think about sourcing?

[Visuals]

A yellow title card appears with the question, “How should airlines think about sourcing?” The video returns to Milind in the office as he introduces three supplier capabilities. Red on-screen labels identify each capability as it is discussed.

[Text displays]

How should airlines think about sourcing? 1. Technical and regulatory fluency. 2. Delivery certainty. 3. Flexible deal structures.

[Conversation / speech]

There’s a lot to consider, but our recommendation is to look beyond unit price and focus on three supplier capabilities that reduce eligibility and delivery risk.

First: technical and regulatory fluency

[Conversation / speech]

First, technical and regulatory fluency. CORSIA eligibility is governed by ICAO which specifies programme scope, vintage, and host-country authorisation and how those elements align at compliance.

Airlines need supply partners who understand the details and can translate evolving rules into supply of compliant units.

Second: delivery certainty

[Conversation / speech]

Second, delivery certainty. In a market where issuance timelines, approvals, and authorisations can shift, airlines are prioritising confidence that contracted units will be delivered as CORSIA-Eligible Emission Units when needed.

Third: flexible deal structures

[Conversation / speech]

And third, flexible deal structures. Even where airlines are buying CEEUs, jurisdictions may apply additional requirements beyond ICAO’s framework.

It is important that deals are structured so ensuring the units remain suitable for compliance at the time of delivery.

Closing

[Visuals]

Milind continues speaking directly to camera. The video ends on a white screen with the Shell logo and a call to learn more.

[Text displays]

To learn more: shell.com/corsia. A small disclaimer states that the information in the video is for general guidance only and does not constitute legal, financial, or regulatory advice.

[Conversation / speech]

Taken together, airlines aren’t just buying CEEUs, they’re selecting partners who can combine regulatory understanding, delivery assurance, and compliance-aligned structures.

If you’d like to explore this further, our Shell team is available for one-to-one discussions.

Title: {Ask the Expert: CORSIA Phase 1 updates}

Video duration 3:03 minutes

Description

{Global Team Lead of Voluntary Carbon Trading at Shell, Steve Daly, discusses CORSIA Phase 1 market updates and recommended actions for buyers.}

{The video details Shell's expertise in carbon markets, key updates including the 2024 Sectoral Growth Factor, newly approved programs, and supply expansions from Gold Standard, Verra, and Art Trees. It concludes with three strategic recommendations for buyers navigating the expanding market, emphasising the importance of early procurement and reliable suppliers.}

Ask the Expert: CORSIA Phase 1 transcript

[Background music plays]

{Upbeat, rhythmic instrumental electronic music plays.}

[Visuals]

{A man stands in a modern office space with large windows overlooking trees.}

[Text displays]

{Steve Daly

Global Team Lead, Voluntary Carbon Trading}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{Hello. I am Steve, Global Team Lead of Voluntary Carbon Trading here at Shell. Welcome to our Ask the Expert series where our team breaks down what matters most for CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) Phase I. In this episode we focus specifically on CORSIA Eligible Emissions Units, also known as CEEUs.}

[Visuals]

{Video footage cuts between Steve speaking, a wall sign reading Shell trading and supply, a busy trading floor with numerous monitors, a person in a sunlit grassy field looking at a tablet, an Airbus A380 parked at an airport gate, planes taking off, and the silhouette of an airplane flying against a hazy sky.}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{Shell has over 20 years’ experience in both voluntary and compliance carbon markets. We operate seven trading desks globally, work directly with project developers and partner closely with airlines to support their compliance needs. The past few months have brought clearer signals on eligibility, demand, and supply. Airlines now have a better view of obligations and sourcing options as Phase I progresses.}

[Visuals]

{A bright yellow screen appears.}

[Text displays]

{What are the key market updates?}

[Visuals]

{Steve stands in a modern, brightly lit office hallway with seating areas. Red text boxes slide in next to him to display statistics.}

[Text displays]

{2024 Sectoral Growth Factor

16%}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{First, ICAO's publication of the 2024 Sectoral Growth Factor is around 16%, indicating a rebound in international aviation with expectations for a stronger demand of CORSIA credits. Next, ICAO Technical Advisory Body (TAB) approved two new programs, Isometric and Premium Thailand VER program, bringing the total to eight. Gold Standard has tagged two cookstove programs as CORSIA Phase I eligible, supplying nearly 1.7 million credits. And we have VERRA, who tagged four of their projects supplying 4.7 million credits. ART Trees Standard issued another 9.1 million credits.}

[Visuals]

{Small footnote text appears in the upper right corner.}

[Text displays]

{As of 4th February 2026. CORSIA supply is evolving, figures may change.

Isometric

Premium Thailand VER}

[Visuals]

{Yellow and red text displays on screen.}

[Text displays]

{Gold Standard

1.7 M}

[Visuals]

{Video footage of an airplane taking off transitions to the underside of a plane flying overhead. Text updates on the screen.}

[Text displays]

{Verra

1.7 M

4.7 M

Art Trees Standard

9.1 M}

[Visuals]

{Steve stands in the office hallway speaking directly to the camera.}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{Together, these developments strengthen market confidence and are expanding the supply pool.}

[Visuals]

{Video footage cuts between Steve speaking and a large, bustling trading floor where personnel wear headsets and monitor multiple screens.}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{Finally, prices. We have seen CEEU prices trading broadly in the high teens to low 20s range across IATA auctions and trading exchanges, reflecting ongoing market activity.}

[Visuals]

{A bright yellow screen appears.}

[Text displays]

{What does this mean for buyers?}

[Visuals]

{Steve speaks from the modern office hallway.}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{In short, with greater clarity in the market, more options emerging, and supply expanding, demand is expected to increase. This makes early procurement not just beneficial, but strategically essential.}

[Visuals]

{A bright yellow screen appears.}

[Text displays]

{3 actions Shell recommends for buyers in 2026}

[Visuals]

{Steve speaks from the office with the large windows overlooking trees.}

[Text displays]

{Quantify your exposure}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{First, quantify your exposure to understand the potential offsetting obligation ahead of the formal notification from the state. Align your internal teams and decision makers on CORSIA goals and responsibility. Once governance is locked, you can move quickly when procurement opportunities arise.}

[Visuals]

{Steve speaks from the modern office hallway.}

[Text displays]

{2. Proactive procurement strategy}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{Second, secure supply early with a proactive procurement strategy that reflects your expected exposure, risk appetite, and budget. Priortise timely hedging through a combination of spot and forward offtake to manage price volatility and supply gaps. Consider structured multi-year agreements when planning for Phase I and Phase II.}

[Visuals]

{Steve speaks from the office with the large windows.}

[Text displays]

{3. Evaluate and secure suppliers}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{Third, evaluate and secure suppliers. Consider working with suppliers who can guarantee CORSIA Eligible Emissions Units, have a strong inventory or a solid pipeline, and are ready to deliver based on your required timeline.}

[Visuals]

{Video footage of ground crew inspecting an airplane engine, an airplane parked at a modern airport, and a busy trading floor with a wall sign.}

[Text displays]

{Local focus, global reach}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{Prioritise those with a proven reputation who stand behind their contracts and can provide the necessary information to support your reporting needs.}

[Visuals]

{Steve speaks from the modern office hallway.}

[Text displays]

{Early procurement can beat volatility.}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{Early procurement can beat volatility. Turn market uncertainty into a procurement plan you can control.}

[Visuals]

{Video footage of a worker fueling an airplane, an airplane being loaded with cargo, and Steve speaking directly to the camera in the hallway.}

[Conversation Title]

{Global Team Lead, Voluntary Carbon Trading}

[Steve Daly]

{Shell's integrated expertise across CORSIA, EU ETS, SAF, jet fuel, and voluntary carbon markets can help you navigate your compliance needs and decarbonisation ambitions. Reach out to your Shell team for a one-to-one discussion. We are here to help.}

[Animated sequence]

{A red and yellow stylised seashell logo fades in on a white background.}

[Text displays]

{To learn more: shell.com/corsia

The information in this video is for general guidance only and does not constitute legal, financial, or regulatory advice. CORSIA requirements may evolve and are dependent on current and future local regulations. Viewers should conduct their own assessments and seek independent professional advice. Shell makes no representations or warranties regarding the completeness or accuracy of this content and accepts no liability for actions taken in reliance on it.}