IATA Launches Deferred Payment Platform on ACE to Ease Airline CORSIA Compliance Costs

The International Air Transport Association (IATA) has launched a new Deferred Payment Platform on its Aviation Carbon Exchange (ACE), giving airlines a way to lock in carbon credit prices today while pushing payment obligations as far out as December 2027. The facility was developed in partnership with Xpansiv, which operates the ACE platform, and commodities trader Mercuria, which provides the financing backbone.

The platform targets a growing pain point for carriers navigating the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the UN-backed compliance framework administered by the International Civil Aviation Organization (ICAO). Under the new structure, airlines can purchase CORSIA-eligible emissions units (EEUs), have them held securely in ACE/Xpansiv escrow, and defer payment, giving carriers both price certainty and cash-flow flexibility in a market that has become notoriously tight.

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Why the Timing Matters

IATA forecasts that airlines will require between 146 million and 236 million EEUs during CORSIA's first phase, which covers the period from 2024 to 2026. As of the first quarter of 2026, only 32 million tonnes of eligible units were available on the market. That's a staggering gap, and it's pushing up both prices and anxiety across the sector.

Credit prices could surge to between $25 and $36 per tonne, or potentially as high as $60, by 2027, with the total cost to the sector ranging from $1.8 billion to $5.2 billion across Phase 1. For airlines already juggling fuel costs and uneven demand, front-loading those purchases puts real strain on balance sheets.

The deferred payment model is designed specifically to break that logjam. By separating price agreement from payment settlement, airlines can act on procurement windows now rather than waiting for conditions to improve.

How the Platform Works

Through the new window on ACE, airlines can purchase CORSIA-eligible EEUs today and agree on pricing while actual payment and delivery happen at a future date. Credits are transferred by the seller and held in escrow through ACE and Xpansiv's settlement infrastructure until payment is completed. The latest date for deferred settlement is December 2027, ahead of the January 31, 2028 EEU cancellation deadline under CORSIA Phase 1.

CORSIA is implemented in phases, with an initial voluntary period running through 2026, followed by a mandatory phase starting in 2027 for most countries. That mandatory expansion significantly raises the stakes. Phase II will encompass nearly all ICAO members, with limited exceptions for small emitters and least-developed countries, raising the scheme's coverage from roughly 64 percent to nearly 87 percent of international aviation emissions.

Escrow-Backed Security for Both Sides

The escrow mechanism is worth noting because it addresses a concern that has come up repeatedly in CORSIA discussions: credit integrity. Credits are transferred at the point of sale and held until payment clears, which protects buyers from counterparty risk while giving sellers confidence that deals won't unravel.

ACE trading is supported by the well-established IATA Settlement System and Clearing House, offering seamless and risk-free settlement to both IATA and non-IATA airlines. Adding deferred payment financing on top of that existing infrastructure makes the platform more functional for carriers that have been hesitant to commit capital early.

About IATA's Aviation Carbon Exchange

IATA formally launched the Aviation Carbon Exchange in 2020 as a platform for airlines and other aviation stakeholders to offset their carbon footprint by purchasing credits in certified projects. The IATA ACE is a secure and centralized global marketplace for airlines, airports, and other stakeholders to trade CORSIA Eligible Emissions Units and the CBL GEO CORSIA CP1 standardized contract. The platform has been instrumental in organizing quarterly procurement events that have so far enabled credit sales to dozens of participating carriers.

The deferred payment facility is the latest step in making that infrastructure more accessible as CORSIA moves from a largely voluntary framework into a compliance obligation that will affect virtually every major international airline.