Ask the Experts: CORSIA Insights for Airlines

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]

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{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.}

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{What are the key market updates?}

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

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{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.}

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

Isometric

Premium Thailand VER}

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{Gold Standard

1.7 M}

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

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{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.}

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{What does this mean for buyers?}

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{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.}

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{3 actions Shell recommends for buyers in 2026}

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

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{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.}

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{Steve speaks from the modern office hallway.}

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{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.}

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

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{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.}

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{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.}

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{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.}

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{Steve speaks from the modern office hallway.}

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{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.}

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{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.}