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Analysis and assessment of the design of an offsetting system for international aviation

Carbon pricing
International
Aviation and maritime transport
Energy & Climate

In October 2016 the International Civil Aviation Organization (ICAO) adopted an instrument for compensating the CO2 emissions of international civil aviation that exceed 2020 levels. In the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), starting in 2021, aircraft operators will be required to purchase carbon offsets or “emission units” for all flight routes covered by the system to compensate for their share in the growth of CO2 emissions in international aviation beyond 2020 levels. The air carriers have to submit these carbon offsets to ICAO as proof of offsetting. In order to ensure the environmental integrity of the scheme, the carbon offsets must have actually contributed to CO2 reductions elsewhere to at least the same extent and double counting towards fulfilment of national climate targets must be avoided. In order to ensure the environmental integrity of emission units at ICAO, a working group was established to develop eligibility criteria for offset units and, if necessary, for project types. These criteria must be submitted to the ICAO Council for adoption in 2018.

In the report it is analysed to what extent the eligibility criteria for offset units ensure the environmental integrity of CORSIA and how they would need to be strengthened to ensure environmental integrity. In addition, comparable criteria are developed for the eligibility of emission allowances from emissions trading systems. Finally, estimates are made of the quantity of emission units available for offsetting international aviation emissions under different eligibility criteria scenarios.