How VM0051 Rice Carbon Credits Qualify for CORSIA and What It Means for Project Developers

Rice cultivation accounts for roughly 10% of global methane emissions from agriculture. VM0051, Verra’s methodology for improved management in rice production systems, gives project developers a framework to quantify and monetize methane reductions from flooded rice fields. With ICAO’s Technical Advisory Board (TAB) now approving VM0051 credits as eligible emissions units under CORSIA, those credits can access a compliance market that did not previously exist for rice methane projects.

This guide explains what that approval means in practice, what extra steps it requires, and how developers can prepare.

What Is VM0051 and Why It Matters for CORSIA

VM0051 (Improved Management in Rice Production Systems) is a Verra VCS methodology that covers project activities such as alternate wetting and drying (AWD), shortened cultivation periods, use of methanotrophs, avoided residue burning, and adoption of short-duration or low-emission rice cultivars. Version 1.0 launched in early 2025, replacing the inactivated CDM methodology AMS-III.AU. Version 1.1, a minor revision, became active in July 2026 to align with VCS Program rules version 5.

CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) is ICAO’s global market-based mechanism requiring airlines to offset growth in international aviation CO₂ emissions above a baseline. Phase 1 (2024 to 2026) is voluntary. Phase 2 (2027 to 2035) becomes mandatory for states representing most international aviation activity, including large economies such as China, India, and Brazil.

ICAO’s TAB has approved VM0051 credits for both the first phase (2024 to 2026) and the second phase (2027 to 2029). This means Verified Carbon Units (VCUs) generated under VM0051 can, if all conditions are met, be used by airlines to satisfy their CORSIA offsetting obligations.

How CORSIA Demand Changes the Picture for Rice Credits

The scale of CORSIA demand is significant. Cumulative offset demand during 2024 to 2026 is projected at 150 to 175 million tonnes of CO₂e. Annual requirements ramp further in Phase 2, with estimates of 62 to 88 million tonnes in 2027 alone, rising to 166 to 257 million tonnes by 2035.

Supply of CORSIA-eligible credits is constrained. Strict eligibility criteria, host country authorization requirements, and the need for corresponding adjustments under Article 6 of the Paris Agreement all limit available volume. This supply-demand imbalance has created a measurable price premium: CORSIA-eligible credits have traded at approximately $22 to $23 per tonne in recent procurement rounds, with projections of EUR 23 to 33 by 2027 under base-case assumptions. Supply-constrained scenarios push prices above EUR 55. For comparison, voluntary market cookstove credits average around $4.54 per tonne without the CORSIA label.

The Verra Registry currently lists eight projects using VM0051, with estimated annual generation exceeding 1.73 million credits. That volume represents a small fraction of total CORSIA demand, which positions rice methane credits as a differentiated, high-integrity supply source for airline buyers.

Who Can Use This Pathway

VM0051 applies to projects in flooded rice production systems that implement one or more eligible interventions: changes to water management (primarily AWD), crop management adjustments, use of low-emission cultivars, residue management, or application of methanotrophs. Projects can operate in any geography where rice is cultivated under flooded conditions.

The first registered VM0051 project, operated by Green Carbon Inc., covers 116,000 hectares in An Giang Province, Vietnam, with projected annual reductions of approximately 590,682 tonnes of CO₂e. Vietnam, Bangladesh, Cambodia, and Colombia have all included rice methane reduction in their Nationally Determined Contributions (NDCs), signaling government-level support that can facilitate the host country authorizations CORSIA requires.

Step by Step: Making VM0051 Credits CORSIA-Eligible

Meeting VCS requirements alone is not sufficient. CORSIA imposes additional layers. Here is the sequence:

1. Develop and register a VCS project under VM0051. Follow Verra’s current VCS Program rules (version 5) and the VM0051 v1.1 methodology. The project’s initial crediting period start date must be on or after January 1, 2016. Emission reductions must occur between January 1, 2021 and December 31, 2029 (for Phase 2 eligibility).
2. Obtain host country authorization. The government of the country where the project operates must issue a Letter of Authorization (LoA) confirming it will apply a corresponding adjustment for the credits transferred internationally. Without this LoA, the credits cannot receive a CORSIA-eligible label regardless of their VCS status.
3. Secure Article 6 authorization. For VCUs with vintages of 2021 onward, Verra requires an “Article 6 Authorized: International Mitigation Purposes” label. This confirms the host country has committed to adjusting its national emissions inventory to avoid double counting between its NDC and the airline buyer’s CORSIA obligation.
4. Arrange insurance coverage. A CORSIA Accounting Representation must be signed by an entity committing to compensate for any VCUs subject to double claiming. This must be accompanied by a certificate of insurance for a Verra-approved insurance product. Coverage must remain active for a minimum of two years beyond the host country’s deadline to submit its Biennial Transparency Report (BTR) following the first transfer of the covered VCUs.
5. Apply for the CORSIA label on the Verra Registry. Once all conditions are met, VCUs can receive the CORSIA-eligible designation on the registry. Only labeled units can be retired for CORSIA compliance.

Common Mistakes to Avoid

• Assuming VCS registration equals CORSIA eligibility. It does not. The host country LoA, Article 6 authorization, corresponding adjustment evidence, and insurance are all separate requirements that must be fulfilled independently.
• Underestimating the LoA timeline. Host country authorization processes vary widely. In some jurisdictions, the legal and institutional frameworks for issuing LoAs under Article 6 are still being established. Start engagement with the relevant government authority early, ideally during project design.
• Ignoring the insurance requirement. The compensation mechanism and insurance are not optional extras. Without them, credits cannot be labeled. Factor the insurance cost into your project economics from the start.
• Using outdated methodology versions. VM0051 v1.1 includes alignment with VCS Program rules version 5, updated stratification guidance, and a requirement for baseline reassessment every five years. Projects developed under v1.0 should review the revisions and ensure compliance with current requirements.
• Neglecting N₂O and CO₂ monitoring. VM0051 requires monitoring and quantification of nitrous oxide emissions and CO₂ emissions in addition to methane. Omitting these from your monitoring plan will create verification issues.
• Overlooking corresponding adjustment verification. The host country must include the corresponding adjustment in a Biennial Transparency Report submitted to the UNFCCC. If the BTR has not been submitted or does not reflect the adjustment, the CORSIA label is at risk.

What to Do Now

If you are developing or considering a rice methane project under VM0051, CORSIA eligibility represents a concrete path to compliance-grade demand and premium pricing. Here are the immediate actions:

1. Assess your host country’s Article 6 readiness. Check whether the government has established a process for issuing LoAs and whether it has submitted or plans to submit a BTR with corresponding adjustments for carbon credit transfers. Countries with rice methane targets in their NDCs (Vietnam, Bangladesh, Cambodia, Colombia) may have stronger institutional frameworks.
2. Update to VM0051 v1.1. If your project was designed under v1.0, review the revisions and update your project documentation accordingly.
3. Budget for CORSIA-specific costs. Include insurance premiums, LoA facilitation, and any legal costs for Article 6 compliance in your project financial model. These costs are real but are offset by the price premium CORSIA-eligible credits command.
4. Engage buyers early. Airlines and their procurement intermediaries are actively sourcing CORSIA-eligible credits. With limited supply of labeled rice methane credits and growing mandatory demand from 2027, forward contracts or letters of intent can de-risk your project and attract financing.
5. Consult Verra’s CORSIA Label Guidance Document for the full procedural requirements and timeline for obtaining the CORSIA-eligible designation on the registry.

This guide reflects publicly available information as of October 2026. ICAO’s TAB reassesses eligible programs and methodologies periodically. Consult the ICAO and Verra websites for the most current eligibility lists and procedural documents.