What Is CORSIA?
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is the UN’s global framework, managed by ICAO, requiring airlines to offset growth in CO₂ emissions from international flights above a defined baseline. It aims to stabilise aviation’s net CO₂ emissions by mandating the use of CORSIA-eligible carbon credits and promoting sustainable aviation fuels (SAF) and efficiency measures.
CORSIA operates under ICAO Annex 16, Volume IV, and is being phased in gradually, becoming broadly mandatory from 2027 onwards. Airlines must monitor, report, and verify (MRV) emissions, then offset emissions above 85% of 2019 levels using approved credits.
Who Does It Affect?
CORSIA applies to international airlines operating between participating countries. Participation is voluntary between 2021 and 2026 but becomes mandatory for nearly all routes from 2027 to 2035. You can find the full list of participating States here: https://www.icao.int/CORSIA/corsia-states-chapter-3-state-pairs
It also impacts:
– Lessors and financiers – through compliance clauses and exposure to carbon costs.
– Airports and fuel suppliers – who must share data for emissions monitoring and SAF accounting.
– Credit suppliers and exchanges – providing ICAO-approved CORSIA-eligible carbon credits.
Where Is CORSIA Going?
CORSIA’s implementation follows a phased approach:
- Pilot Phase (2021–2023): Voluntary participation, MRV setup.
- First Phase (2024–2026): Voluntary, but expanded to more States.
- Second Phase (2027–2035): Mandatory participation for most international flights.
Baseline: From 2024 onward, airlines offset emissions above 85% of 2019 levels.
Eligible Credits: ICAO approves programmes such as ART TREES, ACR, Verra (VCS), Gold Standard, Global Carbon Council, and Climate Action Reserve. These credits must meet strict quality and vintage requirements (generally 2021–2026) and avoid double counting.
CORSIA’s direction is clear; it is integrating carbon pricing into aviation, rewarding early movers who build credible strategies and access high-quality offsets early.
What Airlines Need to Do
- Establish robust Monitoring, Reporting, and Verification (MRV) systems aligned with ICAO Annex 16, Vol. IV.
- Forecast offset obligations based on traffic growth and the 85% of 2019 baseline.
- Secure access to eligible carbon credits early to manage cost and quality.
- Integrate Sustainable Aviation Fuel (SAF) and operational efficiencies to reduce offset volumes.
- Consider hedging strategies or long-term procurement to mitigate price and supply risks.
- Embed CORSIA into sustainability reporting, route economics, and customer programmes.
Early Mover Advantage
Airlines that act early benefit through:
- Lower cost per tonne via forward agreements.
- Priority access to high-quality, ICAO-approved credits.
- Enhanced ESG positioning and investor confidence.
- Reduced compliance and reputational risk.
Those delaying may face limited supply, higher costs, and constrained credit eligibility.
How Axis Green Helps
Axis Green supports airlines, lessors, and aviation stakeholders across every stage of CORSIA readiness:
- CORSIA Readiness Assessment – Evaluate compliance gaps, data systems, and baseline exposure.
- Emission & Cost Modelling – Forecast obligations and simulate scenarios under traffic and SAF variations.
- Credit Sourcing & Structuring – Source CORSIA-eligible credits (ART, ACR, VCS, Gold Standard, GCC, CAR) and structure long-term offtakes or futures.
- Procurement & Risk Management – Optimise purchase timing and manage exposure through exchange-cleared CORSIA EUA contracts.
- SAF & Decarbonisation Integration – Combine offsets with sustainable fuel adoption strategies.
- Governance & Reporting – Build internal systems, ensure verification readiness, and align disclosures with ICAO requirements.
- Training & Market Insight – Empower teams to understand CORSIA mechanisms and opportunities.
- Advance Credit Sourcing – Support clients in securing permitted credits at lower prices ahead of offsetting requirements coming into force for the aviation sector.
With Axis Green, aviation companies turn compliance into strategy; accessing verified credits, reducing costs, and leading the industry towards net zero skies.
Final Thoughts
CORSIA marks aviation’s transition into the era of carbon accountability. Airlines and financiers that prepare early will not only reduce compliance risk but also gain strategic advantage through cost efficiency, brand leadership, and investor trust. Axis Green stands ready to guide you through CORSIA; from compliance to competitive advantage.
