What will #CORSIA mean for the future of #aviation? We have just published the world’s first publicly available price forecast for CORSIA*. The analysis uses proprietary data and projected credit demand for over 400 airlines, individual profiles of which subscribers can find on the MSCI Carbon Markets platform. Our modeling suggests that CORSIA-eligible credits could see prices in the USD 18-51 range per tCO2e during Phase I and USD 27-91 during the latter stages of Phase II (2033 to 2035). At these prices, the costs to international airlines would be modest. If all costs were passed through to customers, the average international ticket price would rise by 0.5-1.0% during Phase I. Read the full report: http://ms.spr.ly/6040WFHLs (*Based on review of publicly available carbon credit research and ratings providers, as of Nov. 1, 2024.)
Karl Pettersen
3mo
At these costs, however, paying for credits (basically taxation) is still much cheaper than investing in SAF. What is the incentive mechanism within CORSIA that will actually make me decarbonize, not just pay for a favorable carbon accounting treatment. Taxation should be above the cost of making SAF for it to be effective, no? Otherwise all we are guaranteeing is full employment for a lot of accountants and bureaucrats.
Hugh Clayton
1mo
Great to see the forecasts made more visible …. If for no other reason to demonstrate that the incentives to decarbonise aviation need to be stronger
Martin Cowley
3mo
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Chief Technology Officer and Founding Partner | Forbes Technology Council
3moClearBlue Markets has been offering a CORSIA forecast through the Vantage platform for over a year now, but alright…