Metals Movers (Argus series within Argus Media feed)
Insuring Corsia: What Lies Ahead?
Why It Matters
Understanding insurance mechanisms is crucial for airlines and developers to ensure the environmental integrity of CORSIA credits and avoid costly double‑counting disputes. As the market scales, the availability of insured credits will influence the feasibility of meeting aviation emissions targets, making this discussion timely for stakeholders navigating regulatory changes and supply‑chain risks.
Key Takeaways
- •OCA insured 8 million Corsia credits, unlocking market supply.
- •Pipeline holds ~45 million credits pending LOAs across Africa, SE Asia.
- •EU draft may exclude forest and biomass credits, threatening supply.
- •Insurance capacity could strain if 150 million credits need coverage.
- •December 26 BTR deadline triggers potential claims if credits missing.
Pulse Analysis
Carbon insurance has become a cornerstone of the emerging CORSIA compliance market, and OCA leads the effort. After two years of collaboration with standards bodies such as Gold Standard and Vera, OCA secured the first insurer approvals, allowing it to underwrite double‑counting risk for voluntary carbon credits. To date the firm has insured roughly eight million credits—about 80 % of the insured supply that entered the market after the Guyana project. By attaching a policy to each credit, OCA gives airlines confidence that any eligibility dispute can be resolved without financial loss, accelerating market participation.
Looking ahead, OCA reports a conservative pipeline of about 45 million credits that already have signed or draft letters of assurance. These projects span cooking‑fuel, water‑filtration and methane‑detection technologies, with nature‑based initiatives beginning to appear, primarily in Africa and Southeast Asia. However, a draft EU proposal threatens to bar forest‑loss and certain biomass‑based credits, potentially shaving a large slice off the anticipated supply. Such regulatory tightening could force developers to recalculate baselines or abandon projects, underscoring the importance of insurance as a risk‑mitigation tool while the market grapples with evolving eligibility rules.
Capacity constraints could surface if the market attempts to insure the full 150 million credits projected for phase one, as OCA estimates a $20 per‑credit limit would strain existing capital. The December 26 baseline‑tracking‑report (BTR) deadline will be the first real test; any credits absent from the BTR will trigger claims under OCA’s policies, provided double‑counting is the cause. Geopolitical shocks, such as the Iran conflict, are unlikely to block insurance on the limited projects currently in the region, but rising jet‑fuel prices may suppress airline demand. OCA’s policies are designed for phase two, yet developer interest remains focused on establishing a stable first‑phase market before broader expansion.
Episode Description
In this episode, Alexandra Luca talks with Chris Slater, CEO of Oka - a leading carbon insurance provider supporting credits in the initial phase of the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia). They discuss Oka's current insurance-based credits pipeline, recent challenges for insurers, and future developments in the Corsia market.
Tune in for expert insights on:
Obstacles to expanding insurance-based Corsia supply: the impact of the EU draft proposal on insurers
Insurance capacity beyond BTR deadlines in 2026
Key regions and methodologies for supplying Corsia
How the war in Iran is impacting Corsia demand and supply
Learn more about the Argus Carbon service
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