Climate Impact X launches first standardised spot contract for Corsia-eligible credits
The move offers airlines and other market participants ‘efficient access’ to eligible emissions units under the scheme
[SINGAPORE] Global environmental markets exchange Climate Impact X on Tuesday (Dec 2) launched its first standardised physical spot contract for Corsia-eligible credits, named “CIX Corsia Phase 1 X – Global Market” (CIX CP1X-GM).
The move offers airlines and other market participants “efficient access” to eligible emissions units (EEUs) under the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia).
As part of its first phase, it consolidates supply from all registries fully approved by the International Civil Aviation Organisation (ICAO) for the 2024-2026 compliance period.
Bids and offers during the pricing session on day one converged and narrowed to a spread of 10 per cent, which offers “early improvements to market transparency and price discovery”, the statement said.
“As the Corsia market takes shape amid supply constraints, early movers that secure eligible credits today not only gain greater control over their compliance pathways but also position themselves to hedge against market and price volatility. Standardisation will be key to unlocking scale and confidence,” said Ellery Sutanto, chief commercial officer at Climate Impact X.
Sharpen price discovery
Trading of the CIX CP1X-GM is complemented by CIX’s on-exchange, time-bound spot pricing window, said the Temasek-backed exchange on Tuesday.
It will be held daily at the intersection of the Asian and European trading hours, where the session pools liquidity from the most active carbon markets to deepen order books and sharpen price discovery.
Activity in the contract will generate firm datapoints to inform the CP1X-GM benchmark launched in June 2024, helping establish a transparent and futures-grade reference price for Corsia EEUs.
As at Dec 1, the CP1X-GM benchmark was assessed at US$19.50 per tonne.
The exchange had launched the world’s first standardised contracts delivering carbon credits aligned with an international carbon-offsetting scheme for the aviation sector previously on Dec 12, 2024, reported The Business Times last year.
Launched by ICAO in 2016, Corsia is a global market-based mechanism that aims to deliver carbon-neutral growth for international aviation from 2020.
Under the scheme, airlines must offset emissions exceeding 2019 levels using EEUs or sustainable aviation fuels. Compliance for the 2024 to 2026 period (Phase 1) is due by Jan 31, 2028.
Importance to local players in aviation, markets
Corsia has an important role in the aviation industry’s decarbonisation journey, according to Boris Mak, vice-president, sustainability, at national carrier Singapore Airlines.
“Singapore Airlines is working closely with governments and partners in the aviation ecosystem to scale up viable solutions to decarbonise emissions. A transparent Corsia pricing benchmark will aid airlines in shaping their carbon offset strategy, and complement other decarbonisation initiatives in the aviation sector,” he explained.
Herry Cho, head of sustainability and sustainable finance at SGX Group, said that establishing a liquid and transparent Corsia Phase 1 spot market is “pivotal” for robust price discovery and market confidence.
He acknowledged how it enables airlines to meet compliance obligations efficiently, too.
“This will catalyse the evolution of scalable carbon markets and unlock pathways for risk management tools as the ecosystem matures,” Cho noted.
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