EU Proposes to Embed CORSIA into Law Through 2035 as Base Carbon’s Rwanda Inventory Becomes Fully CORSIA-Eligible

TORONTO, July 21, 2026 (GLOBE NEWSWIRE) -- Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF) with operations through its wholly-owned subsidiary, Base Carbon Capital Partners Corp. (“BCCPC”, together, with affiliates, “Base Carbon”, or the “Company”), is pleased to announce the European Commission’s July 17, 2026 publication of proposed reforms to the European Union Emissions Trading System (“EU ETS”) which embeds the Carbon Offsetting and Reduction Scheme for International Aviation (“CORSIA”) into EU law through 2035. Additionally, Verra has completed the tagging of all 342,356 remaining carbon credits held in the Company’s inventory from the Rwanda cookstoves project as CORSIA – First Phase, 2024-2026 Eligible (“CORSIA-eligible”), significantly increasing the Company-held CORSIA-eligible carbon credits available to serve the international aviation compliance market.

Highlights:

• The European Commission’s proposal embeds CORSIA into European Union (“EU”) law through 2035, with initial EU demand anticipated to account for approximately 70% of currently tagged global CORSIA carbon credit supply¹.
  
  
• CORSIA-eligible carbon credit pricing has strengthened materially in recent weeks, with the spot price of the ICE Dec-26 CP1 futures contract increasing approximately 39% since June 30, 2026².
  
  
• Verra has completed CORSIA-eligible tagging of all 342,356 previously untagged carbon credits held by the Company from its Rwanda cookstoves project, developed in partnership with the DelAgua Group (“DelAgua”). This brings the Company’s total CORSIA-eligible inventory to approximately 1.1 million carbon credits at the time of tagging.
  
  
• The Company and DelAgua are in the process of securing the insurance required to tag approximately 640,000 previously issued, untagged carbon credits held by DelAgua as CORSIA-eligible, which are subject to the revenue-sharing arrangement between the Company and DelAgua.
  
  

EU CORSIA Announcement and Market Response

On July 17, 2026, the European Commission published its review of the EU ETS, including proposed reforms to address how CORSIA would operate alongside the EU ETS for flights beyond the EU. Under the proposal, CORSIA would be embedded into EU law through 2035 and would remain the sole compliance framework for all flights departing the European Economic Area (“EEA”) during 2027 and 2028. Beginning in 2029, the EU ETS would expand on a trial basis to certain short and medium haul departures from the EEA. Under the proposal, expenditures on CORSIA carbon credits would be deducted from EU ETS obligations. The Commission has also indicated it will conduct a further review of CORSIA’s effectiveness in 2032, which will determine how the two schemes operate thereafter.

Importantly, the proposal confirms that no additional eligibility requirements will be imposed on CORSIA Phase 1 carbon credits beyond those established through CORSIA's existing framework. The EU Phase 1 demand for CORSIA carbon credits alone is anticipated to reach at least 29 million credits, representing approximately 70% of the current global supply of the estimated 40 million CORSIA Phase 1 carbon credits tagged to date¹.

"The European Commission's proposal provides an important validation for CORSIA and, we believe, meaningful clarity on the long-term demand for high-integrity aviation compliance credits," said Michael Costa, Chief Executive Officer of Base Carbon. "The EU has proposed to embed CORSIA into EU law through 2035. Base Carbon continues to be well positioned for this important and positive development, with all of our Rwanda cookstoves inventory now tagged as CORSIA-eligible. In addition, we anticipate regular future carbon credit issuances from the project and near-term tagging of inventories held by DelAgua."

CORSIA-eligible carbon credit pricing has strengthened materially in recent weeks as confidence in the aviation compliance market has improved. Leading into and following the July 17^th EU announcement, the spot price of the ICE Dec-26 CP1 futures contract has increased approximately 39% since June 30, 2026².

CORSIA-Eligibility of Rwanda Cookstoves Project Carbon Credits

On July 17, 2026, carbon credit registry Verra, following its review of the Government of Rwanda’s biennial transparency reports pursuant to the Paris Agreement, completed the CORSIA-eligible tagging of an additional 342,356 carbon credits held in inventory by the Company. At the time of tagging, Base Carbon now holds approximately 1.1 million CORSIA-eligible carbon credits, all subject to the project agreement and revenue-sharing arrangement with DelAgua.

The Company is working closely with DelAgua and relevant counterparties to secure insurance coverage on the remaining untagged carbon credits (approximately 640,000) previously issued and currently held by DelAgua, which are subject to the revenue-sharing arrangement with the Company. Upon completion of the insurance process and satisfaction of applicable requirements, these carbon credits are expected to be tagged by Verra as CORSIA-eligible.

"Together with our project partner, DelAgua, we continue to advance initiatives intended to maximize the value and marketability of the project's issued credits, supported by the operational excellence DelAgua has consistently delivered on the ground," added Costa. "Securing insurance coverage on the remaining 640,000 credits held by DelAgua represents an important next step toward extending CORSIA eligibility across the project's full issued inventory."

Going forward, the Rwanda cookstoves project is anticipated to generate approximately 2.6 million additional carbon credits on regular 6-month intervals during the remainder of the project’s crediting period, all of which the Company excepts to become CORSIA-eligible.

About Base Carbon

Base Carbon provides capital, development expertise and management operating resources to projects involved in the global carbon markets. We endeavor to be the preferred carbon project partner in providing capital and management resources to carbon removal and reduction projects globally and, where appropriate, will utilize technologies within the evolving environmental industries to enhance efficiencies, commercial credibility, and trading transparency. For more information, please visit www.basecarbon.com.

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Cautionary Statement Regarding Forward Looking Information

This press release contains “forward-looking information” within the meaning of applicable securities laws relating to the focus of Base Carbon’s business, the expected issuance and timing of carbon credits, the future application of Article 6 of the Paris Agreement, the Article 6 Authorized label, the CORSIA-eligible label and market reaction thereto, the ability to monetize or sell carbon credits and the receipt of proceeds from the disposition of carbon credits or revenue sharing arrangements, the implementation of the CORSIA framework and timing of eligibility and participation of carbon credits and carbon credit methodologies thereunder, and the market demand and price of CORSIA-eligible carbon credits. In some cases, but not necessarily in all cases, forward-looking information may be identified by the use of forward-looking terminology such as “expects”, “anticipates”, “intends”, “contemplates”, “believes”, “projects”, “plans”, “seeks” or variations of such words and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events. These statements should not be read as guarantees of future performance, results, or achievements.

Although management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking information are based upon reasonable assumptions and expectations, readers should not place undue reliance on forward-looking information because it involves assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking information.

In respect of the Rwanda cookstoves project, certain factors that influence the commercial success of such project, including the timing and number of expected carbon credits, include among other things: (i) the Company has retained industry leading experts/consultants/advisors to assist with the evaluation, planning, negotiation and execution of such project, (ii) the work product, including monitoring reports, of each project’s validation and verification body, (iii) project carbon credit market prices, (iv) the verification of ongoing project monitoring reports and issuance of carbon credits by Verra, and (v) changes to laws, regulation or policies in applicable jurisdictions.

In respect of the Rwanda cookstoves project, certain assumptions that influence the commercial success of such project, including the timing and number of expected carbon credits, include among other things: (i) distributed cookstoves perform to specification when used and participating households use the devices as contemplated by project estimates, (ii) the Company’s in-country project partners perform their obligations in connection with the development and operation of the project, (iii) there is no further changes in the project methodologies used by the applicable carbon credit registry or otherwise adopted by project proponents which results in less carbon credits being issuable, (iv) positive market recognition of the attributes linked to the Company’s carbon credits (such as project methodologies and changes thereto) and acceptance of such carbon credits by emissions trading schemes or compliance programs such as CORSIA, and (v) continued participant involvement and public support, including that of applicable governmental authorities, of the voluntary and compliance carbon markets.

The forward-looking statements made herein are subject to a variety of risk factors and uncertainties, many of which are beyond the Company’s control, which could cause actual events or results to differ materially and adversely from those reflected in the forward-looking statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Specific reference is made to the management’s discussion and analysis for the Company’s quarter ended March 31, 2026 and the most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities (and available on www.sedarplus.ca) for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.

Should one or more of the risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual events or results may vary materially and adversely from those described in the forward-looking information. The forward-looking information contained in this press release is provided as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

_{¹ Sylvera CORSIA Hub, available at https://ratings.sylvera.com/a6-and-corsia-hub/corsia}

_{² ICE Futures Europe CORSIA Eligible Emissions Units (2024-2026) Futures, available at ice.com}

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