Xpansiv, a prominent infrastructure provider for global energy transition markets, has unveiled the CBL GEO® CORSIA first compliance phase (GEO CP1) standardized spot contract on April 29, 2025. This groundbreaking contract is set to assist the international aviation sector in meeting its carbon offsetting requirements, aligning with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
The newly introduced contract will be traded on Xpansiv’s CBL spot exchange, with availability extended to partner exchanges such as the Aviation Carbon Exchange (ACE) and the Johannesburg Stock Exchange’s JSE Ventures Carbon Market. This significant expansion marks a pivotal moment in merging voluntary and compliance carbon markets, as airlines now venture into the initial compliance phase of CORSIA.
The aviation industry bears a substantial responsibility for global greenhouse gas emissions, making carbon credits increasingly vital for airlines striving to reduce their environmental impact. With alternative technologies like sustainable aviation fuel (SAF) still in the developmental stages and costly, carbon credits offer a practical solution for offsetting emissions above 2019 levels as mandated by CORSIA. The demand for high-quality carbon credits is anticipated to surge with more airlines and industries entering compliance markets.
ICAO has forecasted a requirement of 100-150 million tons of CORSIA Eligible Emissions Units (EEUs) during the first compliance phase, underscoring the necessity for solutions like Xpansiv’s new GEO CP1 contract. John Melby, Xpansiv CEO, emphasized the contract’s alignment with the escalating demand, stating, “The transition into the compliance phase of CORSIA is a watershed moment for the rapidly converging voluntary and compliance carbon markets.”
One of the key features of the GEO CP1 contract is its adherence to CORSIA EEU eligibility criteria, ensuring that EEUs are sourced from reputable environmental credit registries. The contract will encompass credits from approved registries, with the flexibility to include more as they receive CORSIA approval. Xpansiv’s commitment to transparency and efficiency in trading is showcased through its robust market infrastructure and unique sub-account structure developed for IATA’s recent EEU procurement events, making access to CORSIA-compliant credits more streamlined.
The launch of the GEO CP1 contract coincides with the rapid growth of the carbon market, with global revenues reaching a record $104 billion in 2023. Companies across various sectors, including aviation, energy, and manufacturing, are turning to carbon credits to meet sustainability goals and comply with regulations. Regulatory frameworks like the EU’s Carbon Border Adjustment Mechanism (CBAM) are further fueling the demand for verified carbon offsets, driven by consumer and investor interest in sustainability.
Despite the market’s growth, challenges persist, with price fluctuations and regulatory uncertainties impacting carbon credit prices. Xpansiv has witnessed significant trading volume growth, particularly on its CBL platform, reflecting the increasing reliance on its infrastructure for carbon trading and emissions management.
Looking ahead, Xpansiv is poised to support the expansion of carbon markets as the demand for quality carbon credits continues to rise. Standardized trading tools like the GEO CP1 contract enhance trust and accessibility within carbon markets, while government policies and technological advancements, such as blockchain for credit tracking, are expected to shape the future of carbon markets. Xpansiv’s latest offering marks a significant stride in providing aviation stakeholders with the necessary resources to comply with CORSIA while advancing global sustainability efforts.
