Isometric and Howden have collaborated to launch an open Request for Proposals (RFP) aimed at expanding access to corresponding adjustment (CA) insurance for carbon removal suppliers. This initiative seeks to integrate more carbon removal methods into the compliance pathways required by the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). As an international framework managed by the International Civil Aviation Organization (ICAO), CORSIA requires airlines to offset emissions growth using verified credits. By leveraging Howden’s role as an independent insurance assessor, the partners aim to streamline the validation of private insurance policies that safeguard against regulatory and political risks in the carbon markets.

The major challenge addressed by this initiative is the administrative and political risk associated with securing corresponding adjustments under Article 6 of the Paris Agreement. For carbon credits to achieve CORSIA eligibility, host countries must formally guarantee that the underlying emission reductions will not be double-counted toward national targets. However, project developers frequently face the risk that host governments may delay, fail to implement, or retroactively revoke these authorizations due to a lack of technical infrastructure or changing political climates. This regulatory uncertainty has historically constrained the supply of high-integrity credits and deterred institutional capital from entering the market.

To resolve these bottlenecks, Isometric and Howden are utilizing an insurance-backed compliance pathway that substitutes direct state administrative actions with private risk-transfer mechanisms. Through the newly launched RFP, the organizations invite insurers to submit policies that provide robust financial or unit-based coverage if a host country defaults on its corresponding adjustment obligations. Howden evaluates these submissions against rigorous eligibility criteria to ensure compliance, transparency, and market trust. Once Howden approves a policy, Isometric adds the qualifying insurance provider to its official guidelines, operationalizing an alternative route for suppliers to certify their units as CORSIA-compliant.

The collaboration establishes a structured framework that mitigates delivery risks for suppliers and enhances long-term market predictability. By certifying diverse private insurance options, the initiative reduces dependence on slow-moving bilateral state approvals and expands the volume of eligible credits available to the aviation sector. Consequently, this risk-mitigation framework unlocks institutional investment previously constrained by political uncertainty. Ultimately, the standardized process ensures environmental integrity while establishing a scalable precedent for risk transfer across global compliance and voluntary carbon markets.