Japan Airlines secures direct biochar carbon removal credits ahead of 2027 CORSIA mandate

Japan Airlines (JAL) has initiated direct purchasing agreements for durable biochar carbon removal credits to manage its environmental compliance strategy. This move aims to bypass traditional intermediaries and secure bilateral arrangements with removal suppliers, insulating JAL from volatile secondary spot markets. The decision is driven by the impending supply crunch under Phase 2 of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which mandates participation from 2027. JAL's strategy involves long-term, direct forward purchase contracts with vetted developers to ensure predictable volume flows and fixed pricing structures. This early market entry provides risk management and strategic advantages, establishing a precedent within Asian corporate finance for durable carbon dioxide removal.

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