#Japan #Tokyo #Gold Standard #CORSIA #Carbon Trade

Carbon Trade Secures CORSIA Phase-1 Gold Standard Credits

Carbon Trade, located in Minato, Tokyo, has achieved a significant milestone by securing 10,000 t-CO₂ of Gold Standard credits for the CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) Phase-1 period from 2024 to 2026. These credits were acquired under strict qualification requirements and received approval from the host country, ensuring they meet international standards for carbon offsetting.

The credits are presently held in a Gold Standard account managed by Carbon Trade, allowing for strict oversight and management of these credits. Additionally, the company has initiated procurement procedures for another batch of 10,000 t-CO₂ credits, aiming to fortify its supply chain further.

Background on CORSIA and Carbon Credits

CORSIA requires airlines to offset any increase in carbon emissions beyond the 2019 levels, making it an essential framework for reducing aviation's environmental impact. In this initial phase, obtaining host country Letters of Authorization (LoA) and adhering to the Paris Agreement's corresponding adjustments is critical, significantly tightening the requirements for qualified credits.

Market analysts have noted a potential supply crunch during this period, underscoring the importance of early procurement and physical credit holdings to ensure reliable delivery mechanisms. With a total of 20,000 t-CO₂ planned across multiple batches, Carbon Trade is preparing to meet the aviation sector's medium-term offset needs effectively.

Strategic Supply to Global Airlines

The company is poised to begin supplying CORSIA Phase-1 eligible credits to airlines, not only in Japan but also to customers around the globe. Their strategy includes:

• - Rigorously selecting credits that have received host country LoA.
• - Ensuring a secure delivery framework via physical holdings in registries.
• - Designing contracts that comply with CORSIA eligibility requirements and associated transfer protocols.
• - Establishing a stable supply framework that considers medium- to long-term demand trends.

Future Prospects and Expansion Plans

Looking ahead, Carbon Trade plans to expand its portfolio of CORSIA-eligible credits beyond Phase-1, including credits for Phase-2 (2027-2035). In addition to Gold Standard credits, Carbon Trade is also looking to incorporate Verra (VCS) credits into its offerings, aligning with a commitment to maintaining high environmental integrity and transparency in credit circulation.

The anticipated demand for credits could range between approximately 600 million to 1.4 billion t-CO₂, translating into a market size of several trillion yen to tens of trillions of yen. Carbon Trade's initiatives reflect a proactive approach to sustainability in the aviation sector, focusing on delivering value while addressing pressing environmental challenges.

Company Overview

Company Name: Carbon Trade Co., Ltd.
Location: 4F Akasaka Long Beach Building, 3-21-20 Akasaka, Minato-ku, Tokyo, Japan.
Representative: Toshiyuki Tateishi
Website: carbontrade.co.jp
Business Activities: Procurement, sale, and mediation of carbon credits; development and provision of carbon offset programs; development, productization, manufacturing, and sales of cold plasma technology.

For further inquiries regarding this matter, please contact:
Carbon Credit Division, Carbon Trade Co., Ltd.
Inquiry URL: Contact Us