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South Africa is one of the countries that could benefit from a new initiative intended to help combat the shortage of Eligible Emissions Units (EEUs) within the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) programme aimed at neutralising international flight emissions.Corsia EEUs are carbon credits approved by the International Civil Aviation Organisation (ICAO). It allows airlines to purchase credits to offset CO2 emissions from international flights that exceed established baselines. Airlines are expected to purchase around 200-million Corsia EEUs by January 2028, at an estimated value of $4–5bn. That figure could increase to nearly 2-billion EEUs through 2035. The International Air Transport Association (Iata) estimates that Africa has the potential to supply up to 57.6-million EEUs.During its recent AGM in Rio de Janeiro, Iata launched the Supporting Alliance for Corsia EEU Supply. It aims to boost the availability of 225-250-million Corsia EEUs in 2027 by pooling the participating organisations’ resources and targeting bottlenecks.Classified as a developing nation, South Africa is exempt from Corsia offsetting until 2027, when it becomes mandatory worldwide. South Africa has already been required to comply with Corsia’s monitoring, reporting and verification obligations, but the country has not yet set up the mechanism to make EEUs available for carbon credit trading. In the view of Kamil Al-Awadhi, Iata’s regional vice-president, Africa and Middle East, the global energy disruptions caused by the outbreak of the war in the Middle East has once again reinforced the link between energy security and sustainabilityThis puts local airlines at risk of not being able to trade carbon emissions credits in South Africa.At the end of October 2025, the National Treasury published a consultation paper entitled “Developing the South African Carbon Credit Market”. The paper proposes reforms to: modernise carbon credit infrastructure;clarify legal and financial regulations; and stimulate investment in South Africa’s low-carbon economy. It aims to introduce appropriate standards and local capacity, develop local certification adapted to South African conditions, promote participation from both local and global stakeholders, and support South Africa’s Nationally Determined Contribution (NDC) under the Paris Agreement. Stakeholders were requested to submit feedback by December 1 2025.In the view of Kamil Al-Awadhi, Iata’s regional vice-president, Africa and Middle East, the global energy disruptions caused by the outbreak of the war in the Middle East has once again reinforced the link between energy security and sustainability. Africa could unlock significant climate finance in this way. So far Tanzania, Malawi, Rwanda, Gambia, Sierra Leone and Madagascar have made EEUs available.Marie Owens Thomsen, Iata’s senior vice-president sustainability and chief economist, says all carbon market stakeholders and related organisations are invited to join forces in the Supporting Alliance to help Corsia realise its potential social, economic and climate benefits.
