Qatar Airways has become the first airline to make a transaction on the International Air Transport Association (IATA) Aviation Carbon Exchange (ACE), IATA and the Qatari flag carrier confirmed Monday. The IATA ACE serves as a centralized marketplace where airlines and other aviation stakeholders can trade CO2 emission reduction units for compliance or voluntary offsetting purposes. According to IATA, ACE offers the highest transparency in terms of price and availability of emission reduction units while simplifying the process for air carriers to access carbon markets to achieve their decarbonization targets.
“Today, IATA and Qatar Airways reach another landmark milestone that encourages carbon markets to respond to the needs of the aviation sector,” Qatar Airways said in a statement. “This initiative enables opportunities to simplify processes to ensure the successful implementation of Carbon Offsetting and Reduction Scheme for International Aviation (Corsia), adopted by the International Civil Aviation Organization (ICAO), while also supporting the successful implementation of voluntary offsetting programs.”
Using IATA Clearing House (ICH), Qatar Airways benefits from the IATA Settlement Systems and Clearing House for what it calls seamless and risk-free settlement of funds.
“The state of Qatar is one of the states that voluntarily participate in the pilot phase of ICAO Corsia,” said Qatar Airways CEO Akbar Al Baker. “As a leader in aviation, Qatar Airways is driven by an ambitious environmental sustainability vision and we are determined to support Qatar in this pursuit by remaining compliant with the global scheme. We welcome the use of the IATA Aviation Carbon Exchange as it enables airlines to invest in Corsia-eligible emission reduction units, further supporting Qatar Airways’ commitment to invest in a low-carbon future, while reducing our financial risk.”
IATA recently approved a resolution for the global air transport industry to achieve net-zero carbon emissions by 2050. The resolution also called for governments to support Corsia, and coordinate policy measures to avoid a patchwork of regional, national, or local measures.
“The Carbon Offsetting and Reduction Scheme for International Aviation is a key tool for helping the industry achieve carbon-neutral growth as part of our long-term target to reach net-zero carbon emissions by 2050,” explained IATA director general Willie Walsh. “The Aviation Carbon Exchange enables airlines to purchase their offsetting credits with maximum transparency and minimum bureaucracy. By performing the first-ever trade on the ACE using the IATA Clearing House, Qatar Airways has demonstrated its support for the ICH as a means of pioneering efficiency in transactions that will make the purchase of quality carbon offsets easier for all airlines.”