Uzbekistan Methane Project Secures CORSIA Eligibility

First CORSIA-eligible methane project delivers 500,000 credits from Uzbekistan

A methane reduction project in Uzbekistan has secured full eligibility under the UN’s Carbon Offsetting and Reduction Scheme for International Aviation, known as CORSIA. Verra issued the approval on 24 April 2026 for an initial batch of 500,000 carbon credits. This marks the first time a methane leakage project has achieved this status for Phase 1 of the scheme.

The project targets leaks in Uzbekistan’s national gas distribution network. It involves GasGreen Asia LLC, a subsidiary of US-based Climate Compass, working with state-owned Hududgazta’minot JSC. Korean firm Ecoeye Co., Ltd. provides the principal investment. Operations began in March 2023.

Over 50,000 individual methane leaks have been detected, measured, and repaired. This work avoids more than 7 million tons of carbon dioxide equivalent emissions each year. The project has created over 200 local jobs for engineers, data specialists, and managers. US technical experts have provided training support.

Hududgazta’minot has saved tens of millions of dollars through prevented gas losses. Methane is the primary component of natural gas. When it leaks, the state loses revenue. Therefore, fixing these leaks delivers both climate and economic benefits.

National methane strategy gains international backing

Uzbekistan has prioritized methane emissions reductions as part of its green economy transition. The country signed the Global Methane Pledge and committed to addressing leaks in its aging gas infrastructure. Consequently, multiple initiatives now target different parts of the gas system.

The World Bank approved a $10.6 million grant on 16 March 2026 through the Global Flaring and Methane Reduction Trust Fund. This grant supports leak repairs in the gas transmission network operated by JSC Uztransgaz. It funds leak detection equipment, advanced repair tools, training programs, and a revolving financial facility for ongoing maintenance. The project also aims to enhance methane reporting standards.

Uzbekistan’s Third Nationally Determined Contribution identifies methane emissions reduction as a priority area. Companies like Saneg S.A. are already working on similar projects. The national potential for methane-related reductions is estimated at 62 to 65 million tons of carbon dioxide equivalent. Meanwhile, the European Bank for Reconstruction and Development supports a separate methane reduction program across energy, waste, and agricultural sectors.

Climate Impact Partners will originate and deliver credits from the Verra-labeled project. Aviva Investors’ carbon removal fund is providing financing. Expected co-benefits include employment creation, ecological regeneration, and biodiversity enhancement in project areas.

EU implementing act reshapes CORSIA Phase 1 supply

Verra’s confirmation on 24 April 2026 makes this project’s 500,000 credits the only batch fully compliant with a proposed EU implementing act. European regulators expect to finalize this act in the second half of 2026. However, the new rules will invalidate most existing Phase 1 supply.

Credits from high forest, low deforestation methodologies will no longer qualify. Similarly, credits that exceed Clean Development Mechanism baselines for non-renewable biomass will become ineligible. As a result, only about 10% of current supply may remain eligible if project developers cancel excess credits after issuance.

Market stakeholders anticipate short-term price pressure on non-compliant Phase 1 credits. European airlines will likely shift their purchasing toward alternative project types that meet the stricter criteria. Non-EU airlines may need to absorb surplus supply at lower prices. This regulatory change favors methane projects over forestry credits for European compliance buyers.

Commercial implications for UK aviation and energy sectors

UK airlines operating international routes must comply with CORSIA requirements. The scheme requires carriers to offset emissions above 2019 baseline levels on international flights. Airlines purchase carbon credits to meet these obligations. Consequently, the availability of eligible credits directly affects compliance costs.

The EU implementing act narrows the pool of acceptable credits significantly. Airlines will need to source compliant credits or face regulatory penalties. Furthermore, companies that purchased non-compliant credits in advance may need to write down these assets. This creates both price uncertainty and supply constraints in the near term.

Methane projects now offer a more secure compliance pathway for European aviation. Projects that reduce methane leaks in gas infrastructure generate credits with lower regulatory risk. In addition, these projects deliver measurable emissions reductions and economic co-benefits. UK airlines should assess their current credit portfolios against the emerging EU criteria.

Energy companies with operations in gas-producing regions should note the commercial potential. Methane leak detection and repair projects can generate carbon credit revenue while reducing product losses. Moreover, these projects align with international commitments under the Global Methane Pledge. Countries with aging gas infrastructure present similar opportunities to Uzbekistan’s approach.

Supply chain considerations also arise for UK businesses working with international partners. Companies that report Scope 3 emissions from purchased energy will benefit from cleaner gas supplies. Projects that reduce methane leakage improve the carbon intensity of natural gas. This becomes relevant for businesses making net zero commitments or responding to customer sustainability requirements.

What UK businesses should know about CORSIA and methane credits

• Verra issued CORSIA Phase 1 eligibility for 500,000 methane reduction credits from Uzbekistan on 24 April 2026, marking the first such approval for a methane leakage project.
• The project has repaired over 50,000 methane leaks in Uzbekistan’s national gas distribution system, avoiding 7 million tons of carbon dioxide equivalent emissions annually.
• A proposed EU implementing act, expected in the second half of 2026, will invalidate most existing CORSIA Phase 1 credits, leaving only about 10% of current supply eligible.
• European airlines must source compliant credits under the new rules, creating near-term price pressure on non-compliant credits and supply constraints for eligible alternatives.
• Methane projects offer lower regulatory risk for CORSIA compliance compared to forestry credits under the tightened EU criteria.
• The World Bank approved $10.6 million in March 2026 to support additional methane reduction work in Uzbekistan’s gas transmission network.
• UK airlines and energy companies should review their carbon credit portfolios and assess exposure to credits that may become ineligible under the EU implementing act.

Planning for tighter carbon credit standards

Businesses using carbon credits for offsetting should review their portfolios now. The EU’s stricter CORSIA rules signal a broader trend toward higher integrity requirements. Credits purchased in previous years may no longer meet current standards. Therefore, companies should verify eligibility against the proposed implementing act criteria.

Airlines face the most immediate pressure. CORSIA obligations continue regardless of credit availability. Companies should secure compliant credits early to avoid supply shortages. In addition, diversifying credit sources across project types and geographies reduces regulatory risk.

Energy sector businesses should consider the dual benefits of methane reduction projects. These initiatives deliver carbon credits while improving operational efficiency. Gas losses represent both emissions and lost revenue. Consequently, leak detection and repair programs can pay for themselves through product recovery.

Companies making net zero commitments should favor high-quality credits from projects with measurable impact. Methane reduction projects typically offer strong verification and monitoring. Moreover, they generate employment and infrastructure improvements in host countries. These co-benefits strengthen the credibility of corporate climate claims.

Businesses reporting Scope 3 emissions should engage suppliers on methane reduction. Gas infrastructure improvements upstream reduce the carbon intensity of purchased energy. This helps companies meet emission reduction targets without changing consumption patterns. Additionally, cleaner energy supplies improve supply chain resilience as climate regulations tighten globally.

The Uzbekistan project demonstrates that aging infrastructure in developing economies presents commercial opportunities. UK businesses with technical expertise in leak detection, monitoring, or repair could support similar initiatives. Furthermore, companies with international operations in gas-producing regions should assess their own methane reduction potential. Projects that deliver both operational savings and carbon credit revenue offer strong investment cases.

Businesses should also monitor developments in Article 6 of the Paris Agreement. This framework governs international carbon credit trading between countries. As implementation rules finalize, new markets will emerge for high-integrity credits. Early participation in these markets may provide cost advantages and secure long-term credit supplies.

SBS supports businesses navigating carbon reporting requirements and net zero planning. Our compliance services help companies understand their obligations under evolving climate regulations. We also provide guidance on carbon offsetting strategies and credit quality assessment.

Where to find authoritative guidance

The International Civil Aviation Organization publishes official CORSIA documentation and updates on eligible emissions units. Their website provides detailed technical criteria and approved methodologies. Airlines and compliance professionals should consult these resources regularly as rules develop.

The UK Department for Energy Security and Net Zero offers guidance on business carbon reporting and net zero transition planning. Their publications address Scope 3 emissions, supply chain engagement, and offset quality considerations. These resources help businesses align internal strategies with national climate commitments.

Verra maintains public registries of verified carbon credits and project documentation. Companies can search for specific projects, review methodology details, and verify credit eligibility. This transparency allows buyers to conduct due diligence on potential credit purchases.

The Global Methane Pledge website tracks national commitments and implementation progress. It provides data on methane emissions by sector and country. Businesses assessing international partnerships or operations can use this information to identify high-impact regions for methane reduction.

The European Commission will publish the final CORSIA implementing act through official channels. UK businesses should monitor these announcements even after Brexit, as many UK airlines operate under European regulations for international flights. Trade associations like Airlines UK provide sector-specific guidance on compliance requirements.