ASEAN to integrate CORSIA findings in sustainable aviation roadmap due in 2026

The ASEAN Secretariat plans to incorporate the findings from a newly launched report on the region's Carbon Offsetting and Reduction Scheme for International Aviation carbon credit potential into its forthcoming sustainable aviation roadmap, which is expected to be finalized in 2026 and submitted to transport ministers for adoption, a senior Secretariat official told Platts.

Speaking to Platts, part of S&P Global Energy, at the MYAero Sustainable Aviation Asia-Pacific Symposium in Malaysia on July 1, Aung Soe Moe, senior officer for air transport at the Secretariat, described the organization's role in shaping the June report -- co-authored by Boeing, GenZero and Abatable -- as primarily one of facilitation and coordination rather than technical input, with the Secretariat channeling its findings to relevant national authorities for policy consideration.

"Our role is more on the sort of facilitation and coordination rather than providing technical advice on the report itself," Aung said. "They have their own expertise, and our role is to make the findings and recommendations a channel to the authority, the transport minister, energy minister, environment minister, for awareness, and then the policy direction on what the next step will be to move forward."

CORSIA requires airlines operating international routes to offset emissions growth above a 2019 baseline. Airlines in the first phase, covering 2024 to 2026, face a combined global obligation of nearly 200 million metric tons, with ASEAN carriers expected to require 17 million to 18 million carbon credits.

The total global eligible supply stood at 36.6 million carbon credits as of June 1, highlighting a structural shortfall that ASEAN is well positioned to help address, the report said.

The region hosts four carbon projects that have issued 2.6 million CORSIA-eligible emission units, representing just 7.1% of the global eligible supply and 1.3% of the expected demand during the first phase, the report said.

Authorization readiness

Asked how prepared other ASEAN governments are to navigate the trade-off between authorizing carbon credits for CORSIA use and protecting their own climate commitments, Aung said only Laos and Cambodia have direct experience issuing letters of authorization. However, the Secretariat is actively working to close the knowledge gap with other member states, according to Aung.

"[In June] we held a workshop that also invited other relevant ministries and agencies to deep-dive into this issue. I believe we will issue a summary record of the meeting, which will be very useful for other member states to learn from Lao PDR and Cambodia's experience," Aung said.

An additional 54 carbon projects in the region meet CORSIA's technical requirements but lack host-government letters of authorization, according to the report. If authorized, ASEAN supply could increase by more than eightfold to 20.8 million carbon credits, sufficient to cover the entire region's first-phase airline obligations, the report said.

Roadmap progress

Aung said the Secretariat's forthcoming sustainable aviation roadmap builds directly on the ASEAN Sustainable Aviation Action Plan adopted by transport ministers in 2022. The roadmap is structured around three pillars: operational improvement covering airspace management, air traffic control and seamless regional operations; CORSIA and Article 6 engagement; and SAF, where the Secretariat is working toward a common regional aspiration on blending ratios, even as individual member states retain their own national targets.

"We anticipate this document will be completed by this year, and then we will submit it to the higher authority and the transport minister for consideration and adoption," Aung said. "This will be a good policy reference not only for the transport sector, but also for other ministries."

The CORSIA report launched in June has already been shared with the Secretariat's working group and technical consultants. "This report is very timely because we are working on the roadmap," Aung said. "This is one of the key pillars of CORSIA and EEU, and now they are quite happy to have a good reference to move forward with the development of the roadmap."

Stakeholder engagement

On closing gaps highlighted in the report, including Vietnam's 24 CORSIA-aligned projects that currently lack authorization, Aung said the Secretariat will lean on its existing cross-inter-ministerial cooperation platform, which brings together transport, environment and other relevant ministries, as well as external partners such as Boeing.

"We do have the cross-inter-ministerial cooperation platform, and we also have the interface with meetings with the transport minister and other relevant ministries," Aung said. "We will invite relevant stakeholders, including Boeing and other partners, and hold the meeting later this year. We are also looking into the possibility of a half-day seminar to promote understanding and share best practices."

Vietnam accounts for 24 of the 54 CORSIA-aligned projects in ASEAN, Thailand for 11 and Myanmar for eight, according to the report. None has yet issued authorizations, the report said.

Looking ahead, a pipeline of 100 new carbon projects could add another 302 million carbon credits by the end of CORSIA's second phase in 2035, bringing the total potential ASEAN supply to 348 million units, with an estimated market value of $1.6 billion to $8.5 billion at prevailing prices of $10-$23/unit, the report said.