NH Investment & Securities will team up with Trinity Airline to cooperate on carbon finance spanning the supply of credits under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and brokerage trading of domestic greenhouse gas emissions permits.

NH Investment & Securities said on Sept. 28 it signed a memorandum of understanding with Trinity Airline on Sept. 21 for mutual cooperation on CORSIA and the greenhouse gas emissions trading scheme.

CORSIA is an international carbon offset scheme designed to manage carbon emissions from international flights. Airlines must secure eligible carbon credits to offset emissions that exceed a certain standard.

Under the agreement, Trinity Airline will use NH Investment & Securities' expertise in carbon markets and financial capabilities to procure the credits needed to meet CORSIA requirements. NH Investment & Securities will support efforts such as managing procurement timing and costs by providing market analysis and trading services.

The company said this is the first time a domestic securities firm and an airline have built a cooperative relationship covering both CORSIA credit supply and brokerage trading of domestic greenhouse gas emissions permits.

The two companies will first procure 20,000 tons of CORSIA credits through NH Investment & Securities. Trinity Airline plans to secure in stages by the end of this year more than 10 percent of the volume of credits it must offset ahead of the first-phase settlement deadline in January 2028.

The companies will also expand cooperation under the domestic greenhouse gas emissions trading scheme (K-ETS). NH Investment & Securities plans to support Trinity Airline's domestic carbon credit trading through its own brokerage trading system and provide related information such as market analysis and policy trends.

The airline industry faces a situation where, as international carbon emissions regulations tighten, it must secure the necessary credits in a stable manner while managing procurement costs stemming from fluctuations in market prices.

Park Geon-hoo (박건후), head of Client Solutions Division at NH Investment & Securities, said, "This agreement is meaningful in that it is a strategic cooperation model that connects a securities firm's expertise in carbon finance with an airline's demand for emissions permits." He added, "Based on the supply of CORSIA credits and brokerage trading of domestic emissions permits, we will expand tailored carbon finance services."