Switched On CORSIA’s Flight Plan for Credible Carbon Markets
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May 22, 2025 Layla Khanfar, an associate on BNEF’s environmental markets team and a carbon credit expert, delves into the complexities of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). They discuss its role in legitimizing carbon credits amidst controversy. The conversation touches on the implications of US and EU participation, the demand for high-quality offsets, and the geopolitical landscape affecting carbon markets. Khanfar emphasizes CORSIA's potential to drive sustainability in aviation, despite ongoing regulatory and participation challenges.
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CORSIA Mandatory Phase Expansion
- The mandatory phase of CORSIA begins in 2027 with 135 markets including major players like China and India.
- This phase covers significantly more emissions than phase one, increasing demand by around 50%.
Emission Reduction Options for Airlines
- Airlines can reduce emissions using ICAO-approved credits or sustainable aviation fuels.
- Credits must be approved by host countries to avoid double counting in emissions accounting.
CORSIA Enforcement and Compliance
- Enforcement of CORSIA depends on countries adopting national laws with penalties.
- Some countries like the UK impose fines on non-compliant airlines, but many others rely on voluntary compliance.