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Compliance Offsets

Compliance markets are regulated by mandatory national, regional, or international carbon reduction regimes

Aither Operates Within Various Compliance and Carbon Tax Schemes

Aither ensures that client projects align with the stringent requirements set by regulatory frameworks such as CORSIA, Article 6.2 of the Paris Agreement, and Carbon Tax Schemes. Each of these markets has specific rules regarding project eligibility, methodologies for calculating emission reductions, and requirements for monitoring, reporting, and verification (MRV).


Compliance Schemes

CORSIA

In order to support the aviation industry in its goal for carbon neutral growth, the International Civil Aviation Organization (ICAO) instituted the Carbon Offsetting and Reduction Scheme for International Aviation. ICAO plans to apply the program to those emissions that can’t be avoided through operational waste elimination and the use of sustainable technologies or fuels.

Article 6.2 of the Paris Agreement

Countries rely on Article 6.2 of the Paris Agreement as a key mechanism to achieve their Nationally Determined Contributions (NDC) through the International Transfer of Mitigation Outcomes (ITMOs). This allows for the exchange of carbon credits from emissions-reducing projects, such as improved cookstoves or e-mobility initiatives. Strict accounting rules ensure that emissions reductions are counted only once, preventing double counting.

Carbon Tax Schemes

In 2019, Singapore established a Carbon Tax under the Carbon Pricing Act to encourage industries to reduce greenhouse gas emissions. The tax focuses on large CO₂ emitters in sectors such as energy, manufacturing, and waste management. Companies can lower their carbon tax liability by purchasing high-quality carbon credits from approved local and international projects.

In June 2019, South Africa’s Carbon Tax Act went into effect to help the country meet its climate commitments under the Paris Agreement. 

In 2017, the Colombian government approved a National Carbon Tax (Law 1819 of 2016) requiring polluting industries to pay taxes for GHG emissions generated. The tax law permits entities within the country to reduce as much as 100% of their tax liabilities by using high-quality carbon credits generated by projects in Colombia.

Discover Voluntary Offsetting Projects

Our goal is to develop projects focused on generating offsets, specifically carbon credits, each representing one metric ton of CO₂.

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