CORSIA and what does it mean for airlines?
CORSIA 鈥� or the Carbon Offsetting and Reduction Scheme for International Aviation 鈥� is a global programme aiming to address emissions from international air travel. It establishes a standardised approach to emissions reductions within the aviation industry, setting out agreed rules, frameworks and standards, and requiring airlines to offset emissions that exceed a set baseline.
Who Needs to Participate?
- Currently, 126 countries have signed up to participate in the scheme. Airlines within these countries are obliged to comply.
- An airline from a participating country flying an extra-EU route between two participating countries will have their emissions along that route covered under the scheme.
How Are Offsetting Requirements Determined?
- Offsetting is calculated on the basis of airlines鈥� annual emissions along eligible routes, above a CORSIA-set baseline.
- The airlines鈥� emissions above this baseline multiplied by the growth factor of the industry emissions above the same baseline represents the total emissions that must be offset for the given year.
- The emissions baseline currently represents 85% of the average 2019 emissions along the eligible routes.
- Baselines may be redefined in 2025 or 2028 as part of periodic reviews that ICAO undertake.
Corsia Timeline
- The scheme consists of three phases; a pilot phase (2021-2023), a voluntary first phase1 (Phase I, 2024-2026) and a mandated second phase (Phase II, 2027-2035).
- Compliance needs to be demonstrated by cancelling CORSIA Eligible Units by 31st January 2028 for Phase I. Phase II will follow with a three-year compliance cycle.
(see below).
1. Country participation is voluntary in this phase but compliance for an airline is mandatory
What do you need to do to comply and how can Shell help
Meeting requirements through CORSIA Eligible Emissions units
CORSIA Eligible Emissions Units can either be in the form of CORSIA Eligible Fuels or CORSIA Eligible Credits.
CORSIA Eligible Credits, need to meet certain quality criteria and specifications:
- Started crediting after 2016
- Emission reduction must have occurred after 2021
- Have corresponding adjustments2 applied
CORSIA Eligible Fuels, such as Sustainable Aviation Fuel, also need to meet certain criteria and be certified before they can be used to meet offsetting obligations.
2 Corresponding adjustments: an adjustment when a carbon credit is cancelled/retired, applied to the country hosting the project that has produced the credit to ensure there is no double counting of the emissions reduction. This is because countries can use these credits to contribute to their Nationally Determined Contributions (NDCs 鈥� Paris Agreement Targets under Article 6)
Helping you navigate your CORSIA requirements
- With over 20 years' experience in the carbon markets, our team can support you in achieving compliance as per latest ICAO council rules.
- All carbon credit projects we offtake from or invest in are subject to robust due diligence processes.
- We have the scale, liquidity and flexibility to help you meet your compliance obligations under CORSIA as well as your carbon compensation goals through the voluntary market.
- We can customise deal structures to help your needs.
- We have a range of carbon products and allowances drawing from over 120 screened carbon credit projects.
Looking for More Information on Your Requirements?
If you want to find out more about how your requirements will be calculated and how Shell Environmental Products can assist you, reach out to a CORSIA specialist via our contact form:
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