- New report outlines the economic opportunities of countries supplying carbon credits for airlines to mitigate their CO2 emissions.
SINGAPORE & MALAYSIA, 1 July 2026 – With the right policy framework in place, ASEAN member states could generate up to US$8.5 billion over the next decade from supplying eligible carbon credits to the United Nations’ Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
This is the headline finding from a new report from Boeing, GenZero, and Abatable, which outlines the potential economic opportunity of ASEAN countries supplying carbon credits for CORSIA. The report provides recommendations for regional governments to realize this opportunity.
ASEAN member states already supply 7% of the current global supply of CORSIA Eligible Emission Units (CEEUs): 2.6 million units from four projects in Cambodia and Lao PDR. The report finds that this supply could increase by eight times, to 20.8 million units, in a matter of months if ASEAN member state governments provided Letters of Authorization (LoAs) to an additional 54 carbon projects that are aligned with CORSIA. These include 24 projects in Viet Nam, 11 in Thailand, and 8 in Myanmar that align with CORSIA requirements but require an LoA to become fully eligible for the scheme.
LoAs signal that a government has authorized the use of the carbon credits from specific carbon projects in CORSIA and will not use the emissions reductions credited against its own national targets.
Looking further ahead, the report finds that ASEAN CEEU supply could increase a further thirteen-fold – an additional 302 million units – if a pipeline of 100 new carbon projects were prioritized for CORSIA. Adding additional supply would reduce transaction costs for airlines and benefit countries economically, and could support 32,000 jobs over the next decade.
Recommendations to governments to unlock supply
On the demand side, the report finds that ASEAN airlines could meet all their CORSIA offsetting obligation for CORSIA’s First Phase locally, if member state governments unlocked the immediately available potential supply from the 54 CORSIA-aligned projects. For ASEAN airlines to meet their expected CORSIA Second Phase demand locally, prioritizing the additional 100 projects in the pipeline will be necessary.
To enable this opportunity, the report provides a number of recommendations for ASEAN member state governments:
- Map CORSIA-aligned supply in the territory against Paris Agreement climate pledges (Nationally Determined Contributions – NDCs) by sector and national emissions sources, to be able to accurately forecast the amount of supply that could be authorized for CORSIA without putting Paris targets at risk.
- Expand governmental cross-ministerial coordination for CORSIA, to increase efficiency and balance the compensation needs of domestic airlines participating in the scheme with the prospects of CORSIA-eligible supply.
- Define and prioritize target sectors and activity types where CORSIA project investment would be welcome, creating a “positive list” of priority activities, and where LoAs could be issued without risking NDC achievement.
- Pilot LoAs with initial volumes that signal an intention to support CORSIA, particularly in areas where revenue can support benefits beyond CO2 reduction.
- Collaborate with other ASEAN member states to facilitate the regional supply of CORSIA-eligible units, while agreeing to support each other on the achievement of members’ NDCs.
Recommendations for airlines and other stakeholders
The report also sets out actions for airlines and broader stakeholders, drawing on interviews conducted with ASEAN-based airlines and other market participants.
For airlines, the report recommends developing a clear procurement strategy with cross-functional coordination; conducting pilot transactions to test internal processes; diversifying CEEU sourcing to hedge risk; and sharing best procurement practices with peers. Airlines are also encouraged to maintain dialogue with relevant government agencies, particularly where host countries hold CORSIA-aligned supply.
Several carriers have already begun piloting transactions: Singapore Airlines (and subsidiary Scoot) retired 150,000 CEEUs for compliance earlier in 2026, and Malaysia Aviation Group has conducted purchasing pilots and developed a procurement framework.
For other market stakeholders, including project developers, standards bodies, and intermediaries, the report calls for stronger capacity-building support for governments, greater market transparency, and additional clarity on CORSIA-specific challenges, including through case studies.
Commenting on the report, Allison Melia, Vice President of Sustainability, Boeing said: “As aviation advances its decarbonization efforts through fleet renewal, operational efficiency and SAF, carbon credits will play an important role in helping airlines to reduce net emissions. This report highlights that ASEAN has the potential to play a globally significant role in strengthening CORSIA implementation and expanding access to high-quality and lower-cost units, with clear policy guidelines and timely action. Collaboration between governments and industry will be key to building a credible and sustainable CORSIA market-based measures ecosystem.”
Frederick Teo, CEO, GenZero said: “The scale of ASEAN’s CORSIA opportunity is significant, and the foundations are already being laid. Governments across the region have made meaningful progress on Article 6 and NDC frameworks, and that work provides a strong base to build from. CORSIA, however, has its own eligibility requirements and compliance dynamics and brings a distinct set of actors, including airlines and civil aviation authorities, into the carbon policy conversation. Ensuring those actors are well-supported, and that Ministries of Environment, Transport, and sectoral agencies are working in concert, is the next step. This report aims to give each stakeholder a concrete starting point for translating that potential into action.”
Valerio Magliulo, CEO and Co-founder, Abatable said: “International aviation has set itself a clear goal: carbon-neutral growth to 2035. CORSIA is how the sector intends to get there, and it is fast becoming one of the most consequential compliance carbon markets in the world. As our new report shows, ASEAN holds one of the largest reserves of potential CORSIA supply. The region could deliver hundreds of millions more additional units over the next decade, worth billions to the economies that host them. This report outlines how host countries can authorize these units in step with their own climate goals, how airlines can signal demand early, and how the wider market can help to build the infrastructure to match supply with need.”
Mr. Satvinder Singh, Deputy Secretary-General of ASEAN for the ASEAN Economic Community, said: “ASEAN is committed to advancing a more sustainable and resilient aviation sector as part of our broader efforts to strengthen regional connectivity and support sustainable economic growth. This study highlights the significant opportunities for ASEAN member states to support the implementation of the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), while advancing national climate objectives and generating wider economic benefits. As ASEAN continues to strengthen regional cooperation on sustainable aviation, enhanced coordination among transport, environment and other relevant authorities will be important in helping to unlock these opportunities and support the aviation sector’s decarbonisation journey.”
About Boeing
A leading global aerospace company and top U.S. exporter, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. Our U.S. and global workforce and supplier base drive innovation, economic opportunity, sustainability and community impact. Boeing is committed to fostering a culture based on our core values of safety, quality and integrity. Join our team and find your purpose at boeing.com/careers
About GenZero
GenZero is an investment platform company focused on accelerating decarbonization globally. Founded by Temasek, it seeks to deliver positive climate impact alongside long-term sustainable financial returns by investing in opportunities with the potential to be nurtured into impactful and scalable solutions.
Driven by a common purpose to decarbonize for future generations, GenZero recognizes the need for a holistic and integrated approach to achieve a net zero world. It adopts a flexible investment approach across three focus areas to drive climate impact: (i) nature-based solutions that help protect and restore natural ecosystems while benefiting local communities and biodiversity; (ii) technology-based solutions that deliver deep decarbonization impact; and (iii) carbon ecosystem enablers that support the scaling of carbon markets and enable broader industry decarbonization.
For more information on GenZero, visit genzero.co
About Abatable
Abatable is a leading provider of environmental asset procurement, intelligence and advisory solutions. It acts as a strategic partner for companies at any stage of their environmental market journey using its award-winning platform of procurement tools, intelligence offerings, and expert team of climate advisors.
Abatable has worked with over 200 companies and deployed 55mn tonnes of high-quality carbon credits, positioning it as the trusted partner for ambitious organizations looking to create long-term impact through environmental markets.
Find out more at abatable.com