Verra’s Verified Carbon Standard (VCS) Program has been approved by the International Civil Aviation Organization (ICAO) for the second phase of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), covering 2027–2029.
Verified Carbon Units (VCUs) issued from eligible projects can now be used by airlines for compliance, with expanded inclusion of methodologies such as cookstove and certain carbon capture projects.
The decision strengthens the link between voluntary carbon markets and regulated aviation offsetting, reshaping supply, pricing, and governance standards across the sector.
Verra Secures ICAO Approval
Verra announced that its Verified Carbon Standard (VCS) Program has been approved by ICAO for use under the second phase of the Carbon Offsetting and Reduction Scheme for International Aviation, known as CORSIA. The approval confirms that VCS-issued credits will remain eligible for compliance use between 2027 and 2029, provided they meet all required conditions.
The decision reinforces the standing of the VCS Program as one of the most widely used and trusted carbon standards globally. It also ensures continuity for airlines seeking credible, high-integrity carbon credits to offset emissions as they transition toward low-carbon operations.
Verra’s CEO, Mandy Rambharos, said the approval validates years of collaboration to strengthen environmental integrity within voluntary markets while aligning with international frameworks designed to meet the global climate challenge.
Eligibility Criteria and Scope
Under ICAO’s criteria, only Verified Carbon Units from projects that began crediting on or after January 1, 2016, and that represent emission reductions or removals occurring between January 1, 2021, and December 31, 2029, will qualify for use in the second CORSIA phase.
The latest decision also removes several restrictions imposed during earlier approval periods. ICAO has lifted its previous exclusion of methodologies for energy efficiency and fuel switch projects in thermal applications, such as those using improved cookstoves. The change applies not only to the upcoming phase but has also been retroactively extended to the first phase (2024–2026).
Similarly, the removal of restrictions on certain carbon capture and storage methodologies reflects a growing recognition of engineered carbon removal technologies as credible contributors to long-term decarbonization. These changes are expected to expand the pool of eligible projects while improving balance between nature-based and engineered solutions.
Strengthening Governance and Climate Integrity
CORSIA’s structure requires that all approved programs meet strict oversight, transparency, and reporting standards to maintain environmental credibility. The VCS Program already incorporates rigorous verification procedures, public registry disclosures, and third-party auditing, positioning it to meet ICAO’s demands for transparency and permanence.
The approval comes as governments and investors continue to scrutinize the quality and governance of voluntary carbon credits. By aligning the VCS Program with the aviation sector’s compliance mechanism, Verra aims to strengthen the bridge between voluntary and regulated carbon markets—an evolution increasingly central to the credibility and scalability of global climate finance.
Industry observers note that as compliance programs such as CORSIA grow, the line between voluntary and regulated carbon trading will continue to blur. Credits meeting high-integrity standards could see higher demand and pricing premiums, while those outside approved frameworks risk losing market relevance.
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Implications for Airlines and Investors
For airlines, the decision broadens access to compliant carbon credits while maintaining the assurance of quality oversight. Procurement teams must still verify that credits carry the correct CORSIA designation and comply with all monitoring and reporting requirements.
For project developers, expanded eligibility means a greater opportunity to bring diversified project types to market—from community-level cookstove initiatives to engineered carbon removal. Developers are expected to maintain robust verification and registry standards to retain eligibility under CORSIA and emerging national frameworks tied to Article 6 of the Paris Agreement.
Institutional investors and ESG-focused funds are also likely to view the development as a stabilizing signal for the voluntary carbon market, as it reinforces governance, accountability, and alignment with international policy frameworks.
A Step Toward Integrated Carbon Markets
The aviation sector remains among the most challenging industries to decarbonize, and the inclusion of Verra’s VCS Program within CORSIA’s second phase strengthens a critical tool for managing residual emissions.
More broadly, the decision reflects a shift toward convergence between voluntary carbon markets and compliance mechanisms, where transparency, integrity, and measurable impact define eligibility. As carbon trading frameworks mature, the focus for both regulators and market participants will increasingly turn to how credits are verified, how benefits are distributed, and how standards can evolve to deliver genuine climate outcomes at global scale.
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