ICAO Invites Applicants for TAB 2026 Assessment Cycle and Stricter LOA Requirements to Affect CORSIA Phase 2 Supply

Why It Matters

The tighter LoA and eligibility standards will shrink the pool of CORSIA‑eligible credits, raising compliance costs for airlines and reshaping the voluntary carbon market. It signals a move toward greater regulatory certainty and risk mitigation for aviation decarbonisation.

Key Takeaways

• TAB opens 2026 assessment applications with stricter LoA rules.
• Phase‑2 eligible programs: ACR, ART, Gold Standard, VCS.
• New criteria demand detailed sustainable‑development and additionality evidence.
• Reversal monitoring extended to 40 years for post‑2026 projects.
• Public issuance data required within 1‑3 business days.

Pulse Analysis

The International Civil Aviation Organization’s Technical Advisory Body is redefining the eligibility landscape for CORSIA’s second compliance phase. By mandating detailed host‑party attestations, the new Letter of Authorization framework aligns with Article 6.2 guidance from COP 28 and aims to eliminate double‑counting between national climate pledges and aviation offsets. This procedural overhaul adds layers of documentation—national contacts, vintages, transfer definitions, and reporting timelines—while preserving the insuranceability of credits through clearer risk profiles.

For market participants, the tightened criteria translate into a narrower supply of approved emissions units. Programs such as ACR, ART, Gold Standard and VCS remain on the approved list, but they must now demonstrate concrete sustainable‑development outcomes, robust additionality analyses, and conservative baselines. The extended permanence requirement—20 years for most projects and 40 years for those launching after 2026—raises the bar for long‑term risk management, potentially increasing the price of compliant credits. Airlines will need to factor these higher compliance costs into their decarbonisation strategies, while developers may face longer lead times to achieve certification.

Looking ahead, the TAB’s emphasis on rapid public issuance and retirement data—available within one to three business days—promises greater market transparency but also imposes operational pressure on registries. As the 2026 assessment results are expected at the ICAO Council’s 239th session, stakeholders should monitor which programs secure approval and how the new LoA standards affect overall credit availability. Proactive engagement with host countries and early alignment to the revised criteria will be essential for developers seeking market access, and airlines may need to diversify their offset portfolios to mitigate supply constraints in the 2027‑2029 compliance window.