Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

World Fuel’s sustainability experts at World Kinect Energy Services are available to support you. Whether it is to set up your CORSIA procurement policy, audit your entire business for emission reductions, supply your ETS requirement, or source high-quality carbon offset projects, we can assist.

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Commercial Aviation Carbon and Sustainability Regulatory Update

World Fuel Services constantly monitors carbon markets and emerging government regulations through its World Kinect division. See below for the most recent updates in eligible carbon credits, surging commercial traffic, and Sustainable Aviation Fuel (SAF) as it relates to the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

World Fuel Services is a global energy management company involved in providing fuel, trip support, payment solutions, technology, logistics, and sustainability to its clients at more than 8,000 locations in more than 200 countries and territories through its Marine, Aviation, and World Kinect Energy Services divisions.

What is the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)?

CORSIA uses market-based environmental instruments, CORSIA-eligible carbon credits, to lower CO2 emissions for international flights whose total carbon emissions cannot otherwise be reduced by operational improvements and renewable fuels. Developed by the United Nations’ International Civil Aviation Organization (ICAO) in 2016, CORSIA provides a carbon reduction scheme that minimizes market distortion while respecting the special circumstances and respective capabilities of ICAO Member States.

Who is subject to CORSIA compliance?

International flights between participating member states will be subject to CORSIA compliance. In compliance with CORSIA, operators flying between volunteering states will offset emissions based on the average CO2 growth of the aviation sector.

How does CORSIA work?

Airlines and other aircraft operators will be subject to offsetting requirements, which will be determined by the CO2 they emit on flights subject to offsetting. This includes all aircraft operators, from large passenger airlines, cargo airlines, some business aviation, and even some private aviation.

The implementation of CORSIA has been divided into three phases: The Pilot Phase, The First Phase, and The Mandatory Phase.

The Pilot Phase (2021-2023) and The First Phase (2024-2026) are voluntary for States to participate in. However, it is mandatory for airlines to offset their emissions from flights between states that are participating in the scheme starting in 2021. According to ICAO, as of January 2023, 115 States have announced their intention to participate in CORSIA. Nine more States (Antigua and Barbuda, Kuwait, Samoa, Seychelles, Sierra Leone, Solomon Islands, Mauritius, Malawi, and Haiti) announced their intention to participate in CORSIA from January 2024, bringing the total number of participating States to 124.

In The Mandatory Phase (2027 – 2035), non-exempt states will be forced to join based on 2018 RTKs thresholds. Consequently, Russia, Brazil, Vietnam, China and India will join the scheme from 2027. In compliance with CORSIA, operators flying between non-exempt and volunteering states will offset emissions based on the average CO2 growth of the aviation sector. For a complete list of participating and exempt countries, visit the ICAO website.

Carbon credits’ eligibility criteria for The First Phase (2024-2026)

The American Carbon Registry (ACR) and Architecture for REDD+ Transactions (ART) are the only two standards that have both been approved by the ICAO so far for The First Phase of CORSIA. Two of the most popular standards, Gold Standard (GS) and Verified Carbon Standard (VCS) have only been granted conditional eligibility. GS and VCS have announced that they expect a full registration in the coming months.

Vintage eligibility for the First Phase is allowed for companies that started their first crediting period from 1 January 2016 and in respect of emissions reductions that occurred from 1 January 2021 through 31 December 2026.

ICAO has decided that only carbon offset units including a mechanism called “corresponding adjustment” will be eligible for the First Phase of CORSIA. This Paris Agreement mechanism ensures that emission reductions are not double counted, increasing integrity in the market. The problem is that there is currently no carbon offset projects that meet this criteria. Many governments are putting procedures in place to be able to execute corresponding adjustments but it is not clear when these credits will reach the market.

CORSIA requirements could be triggered by surging commercial traffic

According to the ICAO, passenger demand will fully recover from COVID as early as this year. This could mean that carriers participating in the pilot phase would be required to buy CORSIA-eligible carbon offsets for this year’s compliance.
However, jet fuel demand is lagging passenger data. Due to the slower recovery of long-haul and increased use of smaller aircraft and more fuel-efficient planes, S&P Global and the International Energy Agency (IEA) have forecasted a full recovery of jet fuel demand to the 2019 level by 2027, capping CORSIA requirements.
World Fuel’s sustainability experts at World Kinect Energy Services will bring you and your company up to speed on the latest policy developments. Whether it is to set up your CORSIA procurement policy, audit your entire business for emission reductions, supply your ETS requirement, or source high-quality carbon offset projects, we can assist.

Sustainable Aviation Fuel (SAF) requirements set for 2025

The European Parliament and EU member states reached an agreement to force all flights originating from EU airports to partially burn SAF beginning in 2025.
The percentage of SAF used will start at 2% from 2025, moving to 6% by 2030, 20% by 2035, 34% by 2040, and 70% by 2050. Sub-target for synthetic fuels from green hydrogen will also come into force from 2030, starting at 1.2%, then 5% by 2035, and reaching 35% by 2050.
The European Parliament and Council still need to ratify the package before it becomes binding.
ICAO recently certified the first CORSIA eligible batches of SAF and SAF is an approved method to decrease offsetting requirements.
Since 2015, World Fuel has delivered nearly 40 million gallons of SAF to business and commercial aviation customers worldwide. World Fuel recently signed an agreement with SAF refiner Neste, which will increase the accessibility of the currently limited supply of SAF available for European commercial, business, and general aviation customers. Learn more about on World Fuel’s history of supporting renewable fuels, here.