Corsia Phase 1 Conditional Offtake

This assessment reflects the price of a carbon credit compliant with the first phase (2024-2026) of Corsia, the UN aviation mechanism to limit growth in airline emissions, and traded in the forward delivered market. Under the 'conditional offtake' mechanism, seller makes best efforts to deliver carbon credits tagged with a 'Corsia phase one' label by a relevant registry by the end of the calendar year, to the final buyer. If the initial delivery cannot take place for reasons of Corsia eligibility, seller retains option to deliver alternative credits or cancel the transaction. Both 'year plus one' and 'year plus two' contracts are covered in order to reflect the different delivery periods traded OTC. All carbon credit types are covered, although Quantum intends to settle the basket on the cheapest carbon credits eligible. A typical deal size of 100,000 tonnes of CO2 equivalent is reflected. The price of smaller deal sizes may be normalised downwards and bigger deals normalised upwards.