In a world grappling with the urgent need to mitigate climate change, industries across the board are facing increasing pressure to reduce their carbon footprint. Among these, the aviation sector stands out as a significant contributor to greenhouse gas emissions (Overton, 2022). In 2022, aviation contributed to 2% of worldwide energy-related CO2 emissions, experiencing a faster growth rate in recent decades compared to rail, road, or shipping.

With the resurgence in international travel demand post the Covid-19 pandemic, aviation emissions in 2022 approached nearly 800 million metric tons of CO2, approximately 80% of the pre-pandemic levels (IEA, 2023). In response to this challenge, the International Civil Aviation Organization (ICAO) introduced CORSIA – the Carbon Offsetting and Reduction Scheme for International Aviation. Let’s take a closer look at what CORSIA entails and its potential scopes.

Aircraft operators will fulfill their offsetting obligations under CORSIA by acquiring and voiding CORSIA-eligible emissions units. The determination of which emissions units qualify under CORSIA is made by the ICAO Council, based on recommendations from its Technical Advisory Body (TAB) and in accordance with the CORSIA Emissions Unit Eligibility Criteria (EUC). 

Understanding CORSIA:

CORSIA, approved in October 2016 by the International Civil Aviation Organization (ICAO) in Montreal, requires most airlines to track and report their emissions starting in 2019. Additionally, from 2021, airlines must buy emission reduction units from carbon projects in other sectors to offset any increase in the industry’s CO2 emissions above the levels recorded in 2020. In March 2023, the ICAO Council made a significant decision concerning CORSIA Eligible Emissions Units. They agreed to introduce a new general eligibility parameter for all units approved for use in the first phase of CORSIA (2024-2026 compliance period), alongside the existing 2016 crediting start date parameter. This approved vintage will encompass units issued for emissions reductions between January 1, 2021, and December 31, 2026.

CORSIA consists of three phases:

The distinction between these phases lies in the voluntary nature of the state (member countries) participation in CORSIA offsetting during the pilot and first phases, whereas the criteria for involvement in the second phase are determined based on 2018 RTK (Revenue Tonne Kilometers) data and voluntary engagement.

In contrast to the optional involvement of States in CORSIA offsetting during the pilot and first phases spanning from 2021 to 2026, the second phase of CORSIA, spanning from 2027 to 2035, encompasses all Member States. Nevertheless, there are two exemption categories based on aviation-related and socio-economic factors. 

1. Pilot Phase:

This phase served as a trial period to test the implementation of CORSIA. During this time, participating states monitored emissions from international flights and reported them to the International Civil Aviation Organization (ICAO). However, offsetting requirements were voluntary during this phase.

2. First Phase:

This phase marks the official commencement of CORSIA’s implementation. Participating states are required to offset any increase in CO2 emissions from international flights above the average emissions of 2019 and 2020. However, certain exemptions and flexibility measures might apply, particularly for small and developing countries.

3. Second Phase:

This phase aims to further strengthen CORSIA’s impact by tightening regulations. The specifics of this phase may evolve based on the results and feedback from earlier phases, as well as emerging trends in international aviation and climate policies.

Important facets of CORSIA:

All states with a proportion of international aviation activity exceeding 0.5% of the total activity in 2018 or whose combined activity represents 90% of the total are encompassed by the scheme. However, exemptions are granted to Least Developed Countries, Small Island Developing States, and Landlocked Developing Countries unless they opt to join voluntarily.

1. Carbon Offsetting

One of the key mechanisms of CORSIA is carbon offsetting. Airlines participating in CORSIA are required to purchase carbon offsets to compensate for their emissions above the baseline set at 2020 levels. These offsets fund projects that reduce or remove greenhouse gas emissions elsewhere, such as reforestation or renewable energy projects.

2. GHG Emission Reduction

While offsetting plays a crucial role in CORSIA, the scheme also encourages airlines to invest in measures to reduce their emissions directly. This can include adopting more fuel-efficient aircraft, improving operational efficiency, and investing in sustainable aviation fuels.

3. Global Reach

CORSIA is a globally recognized initiative, encompassing nearly all countries in the world. It applies to flights that cross international borders, ensuring that emissions from international aviation are addressed comprehensively.

4. Phased Implementation

CORSIA is being implemented in phases to allow for gradual adaptation within the industry. The initial voluntary phase began in 2021, with a pilot phase from 2021 to 2023, followed by a first phase (2024-2026) and subsequent phases with progressively stricter emissions targets.

What eligibility criteria apply to projects?

The ICAO Council has made decisions regarding the carbon-offsetting initiatives and emission units approved for the trial phase of CORSIA from 2021 to 2023. These 11 initiatives include:

1. American Carbon Registry
2. Architecture for REDD+ Transactions
3. Biocarbon Fund Initiative for Sustainable Forest Landscapes 
4. China GHG Voluntary Emission Reduction Program
5. Clean Development Mechanism
6. Climate Action Reserve
7. Forest Carbon Partnership Facility Program
8. Global Carbon Council
9. Socialcarbon
10. The Gold Standard
11. Verified Carbon Standard

In March 2024, ICAO Council considered the TAB (Technical Advisory Body) recommendations and approved 2 Emissions Unit Programmes to supply CORSIA Eligible Emissions Units for the first phase (2024-2026 compliance period):

1. American Carbon Registry
2. Architecture for REDD+ Transactions

Conditionally approved:

1. Verified Carbon Standard
2. Gold Standard
3. Global Carbon Council
4. Climate Action Reserve

Full approval is a subject for final consideration of ICAO Council in late 2024.  The TAB conducts annual assessments, allowing conditionally approved programs to reapply once they’ve made the requested changes. Another assessment cycle will commence in 2024.

The requirements for projects:

1. Additional:

Projects must demonstrate surplus GHG reductions beyond what would occur without the offset market, meeting stringent standards and not being mandated by law.

2. Realistic Baseline:

Baselines are based on scientific, policy, and business research, being conservative and publicly disclosed.

3. Quantified and Verified:

Rigorous rules cover quantification, reporting, and verification, ensuring conservative and transparent calculations.

4. Transparent Chain of Custody:

Credits have unique serial numbers and transparent tracking in a publicly accessible system. Offset credits should be assigned an identification number that can be tracked from when the unit is issued through to its transfer or use (cancellation or retirement) via a registry.

5. Permanent Reductions:

Credits represent permanent GHG reductions, with risks of reversal addressed through monitoring and legal measures.

6. Mitigation of Emissions Increase:

Protocols include measures to assess and mitigate potential emissions increase elsewhere.

7.  Single Counting:

Credits are independently verified to prevent double counting, ensuring they are only counted once towards mitigation obligations.

8. Do No Harm:

Social and environmental impacts are assessed, with projects required to comply with laws and include additional safeguards if necessary.

What Coral Future offers:

Coral Future can provide a selection of CORSIA-eligible credits (Gold Standard, GCC, VCS etc) to the aviation industry. CORSIA accepts carbon offset credits from various types of projects, including renewable energy projects (such as wind farms or solar energy installations), methane capture projects in landfills or agriculture, and projects that improve energy efficiency or reduce emissions from industrial processes. 

Projects that are exempt from CORSIA are fossil fuel projects, large hydroelectric projects, nuclear energy projects, industrial gas projects and waste management projects.

In conclusion, CORSIA stands as a groundbreaking initiative aimed at mitigating the environmental impact of international civil aviation. The phased implementation approach, comprising a pilot phase, first phase, and second phase, allows for gradual adaptation and refinement of the scheme. CORSIA’s eligibility criteria for projects underscore the importance of surplus GHG reductions, realistic baselines, quantification and verification, transparent chain of custody, permanence of reductions, and mitigation of potential emissions increase elsewhere, among others. As Coral Future offers CORSIA-eligible credits to the aviation industry, it aligns with the scheme’s objectives while emphasizing the importance of selecting projects that meet stringent criteria.