Understanding CORSIA: How It Will Shape the Aviation Carbon Market

The Aviation Challenge

The aviation industry is a growing contributor to global greenhouse gas emissions, accounting for roughly 2–3% of total CO₂ emissions worldwide. As passenger numbers and international flights continue to rise, these emissions are projected to grow, posing a significant challenge to global climate goals. In response, the International Civil Aviation Organization (ICAO) developed the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), a global framework designed to help airlines achieve carbon-neutral growth.

What Is CORSIA?

CORSIA is an international carbon offsetting mechanism for the aviation sector. Its primary goal is to ensure that any growth in CO₂ emissions from international flights above 2019 levels is offset through the purchase of carbon credits. These credits must come from approved projects that reduce or remove emissions, ranging from renewable energy, community-based and reforestation projects to advanced technological solutions like direct air capture. The scheme was initially implemented on a voluntary basis, allowing airlines to participate and familiarize themselves with the system. However, starting January 1, 2027, CORSIA will become mandatory for most international flights, significantly increasing the volume of emissions that must be offset.

Why CORSIA Matters

The importance of CORSIA lies in its ability to standardize climate action across a global industry. By creating a uniform system for measuring, reporting, and offsetting emissions, CORSIA reduces fragmentation and ensures consistency in the carbon credits airlines purchase. This framework not only supports transparency and accountability but also strengthens the voluntary carbon market by generating predictable demand for high-quality credits. Airlines are incentivized to seek projects that are rigorously verified and capable of delivering real, measurable climate impact, benefiting both the integrity of the carbon market and the broader environmental goals it serves.

CORSIA also encourages airlines to accelerate internal emissions reduction measures. While offsetting addresses emissions that cannot currently be eliminated, it complements operational improvements such as fuel efficiency upgrades, fleet modernization, and the adoption of sustainable aviation fuels. This dual approach, combining direct emissions reductions with high-integrity carbon offsets, ensures that the aviation industry contributes meaningfully to global decarbonization efforts.

Impact on the Carbon Market

CORSIA is expected to have significant market implications. By creating large and consistent demand for carbon credits, it will drive both volume and pricing dynamics in the voluntary carbon market. Projects that can demonstrate verified emissions reductions, particularly those with social and environmental co-benefits, are likely to command a premium. Nature-based solutions such as reforestation, afforestation, and community-driven initiatives like clean cookstoves will remain critical, while emerging technologies for carbon removals will also see increased investment. Regions with strong project pipelines, particularly in Asia, Africa, and Latin America, stand to benefit from this growing market, attracting funding and enabling local communities to participate in global climate solutions.

Looking Ahead

CORSIA is poised to make the aviation sector one of the most significant and consistent buyers in the carbon market. Its mandatory offsetting requirements will not only drive emissions accountability but also elevate the demand for high-integrity carbon credits, encouraging project developers to scale initiatives that deliver measurable environmental and social impact. For the voluntary carbon market, CORSIA represents a pivotal shift, transforming aviation from a high-emission sector into a catalyst for climate action while creating opportunities for projects that combine emissions reductions with community and biodiversity benefits.

CORSIA is more than just a compliance mechanism; it is a transformative force for the carbon market. By aligning the aviation industry with global climate targets and promoting high-quality offset projects, CORSIA ensures that international air travel can grow responsibly while supporting initiatives that reduce emissions, enhance livelihoods, and protect ecosystems worldwide.

Written By: Benjamin Michelson