What is Corsia and What Does it Mean for British Aviation?

The UK government is taking a decisive step towards aligning its aviation sector with the UN's Carbon Offsetting and Reduction Scheme for International Aviation (Corsia).

This step comes in the form of the publication of draft legislation, which is designed to enforce sustainability compliance while avoiding undue financial burdens on airlines and passengers.

The Department for Transport (DfT) has opened consultations to shape the application of Corsia in the UK, marking a critical move in the country’s commitment to sustainable aviation.

What exactly is Corsia?

CORSIA is a global initiative that the UN started in 2016. It is designed to limit the carbon emissions that the aviation industry produces through international flights. So, how exactly does it work?

Corsia requires airlines to offset any growth in emissions beyond 2019 levels by funding projects like reforestation or clean energy.

It is a positive initiative, but its implementation comes at a pivotal time for the industry. Airlines, still recovering from pandemic-induced financial strain, face growing regulatory pressure to align with climate goals, as well as significant uncertainties in carbon credit markets.

As with all sectors in pursuit of sustainability, balancing environmental targets with the financial reality is a tricky path to tread.

A balancing act for the aviation sector

The draft legislation, proposed by the DfT, outlines a fine of £100 (US$127) per tonne of carbon dioxide equivalent (tCO₂e) for non-compliance, a penalty aimed at ensuring the scheme’s “legislative teeth".

Nevertheless, the UK government understands that an overly burdensome approach could have some negative consequences.

“This approach also aims to avoid unnecessary price increases for passengers, ensuring the UK's decarbonisation efforts do not negatively impact those who rely on air travel,” the DfT says in a statement released alongside the announcement.

Two primary approaches are under consideration for Corsia's integration with the UK’s existing Emissions Trading Scheme (UK ETS), which currently applies only to domestic aviation.

The simpler “UK ETS only” option would keep flights to the European Economic Area (EEA) and Switzerland outside Corsia’s scope.

Alternatively, a “price-based hybrid” model would see Corsia applied alongside the UK ETS, with airlines compensated for Corsia-related costs.

Industry readiness and uncertainties

While Corsia represents a landmark global effort to tackle aviation emissions, its adoption has been somewhat uneven.

Many airlines, including British Airways’ parent company International Airlines Group (IAG), have shown engagement, but a bit of uncertainty around carbon credit eligibility and administrative complexities have slowed compliance.

Clarity is beginning to emerge. Recent decisions on approved carbon standards have provided much-needed direction, but gaps remain, particularly in how supplier projects will be overseen at the host country level.

This has caused bottlenecks in the availability of viable credits, leaving traders and service providers hesitant to commit fully to the emerging market.

Global collaboration and regional complexity

As a member of ICAO, the UK is bound by international law to adopt Corsia’s Standards and Recommended Practices (SARPs) into domestic legislation. Yet, implementing Corsia alongside the UK ETS raises complex questions.

The two systems operate on different timelines: Corsia compliance is assessed triennially, while the UK ETS operates on an annual basis. This misalignment has required the UK to explore adjustments to its emissions accounting procedures.

The government’s consultation also seeks to address a key concern among airlines: avoiding double regulation for flights between the UK and the EU. Since the UK’s departure from the bloc, its ETS has diverged from the EU system, necessitating new agreements to ensure fair competition and market integrity.

“Our aim is to ensure that airlines are not unfairly burdened,” the DfT said.

A sector under pressure

The aviation sector has faced mounting pressure to improve its environmental footprint, with international travel accounting for over 2% of global CO₂ emissions.

While technological advances, such as the development of sustainable aviation fuels (SAF) and electric propulsion, promise to reshape the industry in the long term, immediate action is needed to address emissions growth.

Corsia’s success will depend largely on its global adoption and the willingness of governments and airlines to work collaboratively. Yet domestic political challenges and economic concerns often complicate these efforts.

The UK’s draft legislation reflects this balancing act, with the government keen to implement international standards without exacerbating costs for airlines or their customers.

“This is about making aviation sustainable without making it inaccessible,” said a spokesperson from the DfT. “The sector must transition, but it must do so in a way that supports both the economy and the environment.”

With consultations open until February 2025, the industry and policymakers now have a narrow window to refine the proposed legislation.

There may be some hiccups along the way, but the general feeling amongst industry leaders is that regulation will be an important step towards sustainability. One such leader is the IATA's Director General, Willie Walsh.

“Governments can accelerate progress by winding down fossil fuel production subsidies and replacing them with strategic production incentives and clear policies supporting a future built on renewable energies, including SAF,” he says.

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