The International Air Transport Association (IATA) has called on governments to strengthen the foundations of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), marking the 10th anniversary of the International Civil Aviation Organisation (ICAO) resolution that established the global aviation climate scheme.

Adopted by the ICAO Assembly in 2016, CORSIA became the first global market-based measure covering an entire industrial sector and represented a significant follow-up to the Paris Agreement reached the previous year.

More than 130 countries now participate in CORSIA.

IATA estimates that by the end of 2026, the scheme will have contributed to the mitigation of approximately 200 million tonnes of CO2. From 2027, CORSIA is expected to cover around 85% of global international aviation emissions.

Over the lifetime of the scheme, as much as $120 billion could be mobilised in climate finance for emissions-reduction and carbon-removal projects worldwide.

"As the first global, sector-wide climate agreement for aviation, CORSIA showcases the best of international collaboration: a global solution to a global challenge. It preserves a level playing field for aviation while channeling climate finance to support emissions reductions around the world. And in a world increasingly characterised by fragmentation, that is a powerful reminder of what can be achieved when states work together. CORSIA is already a landmark achievement. With broad participation, consistent implementation, and continued support from governments, it can become one of the most successful examples of climate action and climate finance in practice," said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.

EU ETS Review Raises Industry Concerns

The CORSIA anniversary coincides with the European Union's review of its Emissions Trading System (EU ETS).

The EU is considering proposals that would expand the system to destinations within 5,000 kilometres of the EU, using Frankfurt as the geographic centre, while creating a mechanism for developing comparable carbon-pricing systems with third countries.

IATA has warned that such measures could create overlap with CORSIA and increase compliance costs for airlines. According to IATA's revised analysis, the proposed expansion could raise EU ETS compliance costs by 40%, reaching EUR280 billion between 2027 and 2040.

“The EU ETS review should reinforce CORSIA as the global framework for international aviation, not encourage overlapping regional or bilateral systems. Europe will achieve more for climate action and its own competitiveness by directing aviation revenues towards Sustainable Aviation Fuels, infrastructure and emerging technologies than by adding carbon costs that do not address the sector’s underlying energy constraints,” said Thomas Reynaert, IATA’s Senior Vice President External Affairs.

IATA also said the absence of an impact assessment on the proposed EU ETS expansion leaves uncertainty over its potential effects on third countries, international connectivity, competitiveness and CORSIA.

The association is urging European policymakers to maintain a unified global approach by fully implementing CORSIA and dropping the proposed “EU ETS as a Service” mechanism.

At the same time, IATA is calling for stronger support for Sustainable Aviation Fuel (SAF), including earlier assistance through the SAF allowances mechanism, removal of geographic production restrictions and fewer conditions limiting eligible SAF pathways.

IATA also wants aviation-generated EU ETS revenues to be ringfenced for SAF production, infrastructure and emerging aviation technologies, arguing that such measures could support aviation's decarbonisation while strengthening Europe's competitiveness, resilience and long-term energy security. -TradeArabia News Service