The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), designed to curb aviation emissions, risks slowing the sector’s decarbonization by delaying stronger climate measures such as carbon pricing, according to a recent analysis published by industry group SASHA Coalition.
Launched in 2021 by nonprofit Opportunity Green to accelerate the decarbonization of aviation and shipping, the coalition argues that CORSIA, established by the International Civil Aviation Organization (ICAO), relies primarily on offsetting rather than directly reducing emissions from air travel.
At best, the system compensates only for emissions growth above a set baseline while leaving much of the sector’s pollution untouched. The framework has also allowed international aviation to remain largely outside the scope of the European Union’s Emissions Trading System (EU ETS).
Since the early 2010s, the development of CORSIA has been used to justify exempting international flights from the EU ETS, limiting the reach of Europe’s main climate policy for aviation.
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The exemption has left roughly 1.1 billion tonnes of carbon dioxide (CO2) emissions from aviation unregulated between 2012 and 2023, the equivalent of Greece’s total emissions over the same period. It also represents about $30 billion (€26 billion) in carbon market revenue that could otherwise have supported climate action.
Continuing to rely on the global offsetting system could prolong the gap, the SASHA Coalition warns. If international aviation remains outside the EU ETS after the next policy revision, another 1.3 billion tonnes of emissions could go unregulated between 2027 and 2035, with around $150 billion (€130 billion) in potential revenue lost.
The group argues that stronger policy signals are needed to accelerate investment in cleaner technologies, including hydrogen-based fuels and zero-emission aircraft.
Instead of depending on offsets, policymakers are urged to expand the EU ETS to cover flights beyond the bloc and maintain a robust carbon price that directly incentivizes emissions reductions across the aviation sector.
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