IATA Urges Governments to Back CORSIA as EU Carbon Plans Raise Airline Cost Concerns

Adopted at the International Civil Aviation Organization’s 2016 Assembly, CORSIA became the first global market-based climate measure for an industrial sector, following the Paris Agreement reached a year earlier.

The International Air Transport Association has called on governments to strengthen aviation's global carbon framework as it marks ten years since the decision to establish the Carbon Offsetting and Reduction Scheme for International Aviation, known as CORSIA. The anniversary comes as the European Union considers changes to its own emissions trading system that IATA says could increase airline costs and create overlapping carbon-pricing rules. The association wants governments to support consistent implementation of CORSIA and direct more aviation-generated carbon revenues towards cleaner fuels, infrastructure and emerging technologies that can help the sector reduce emissions.

A Decade of Cooperation Opens a Climate Finance Opportunity

Adopted at the International Civil Aviation Organization's 2016 Assembly, CORSIA became the first global market-based climate measure for an industrial sector, following the Paris Agreement reached a year earlier. More than 130 countries now participate, and the scheme is expected to have mitigated approximately 200 million tonnes of carbon dioxide by the end of 2026. Its emissions coverage is estimated to reach approximately 85% from 2027, with up to $120 billion potentially mobilised before the scheme ends to support emissions reduction and carbon removal projects worldwide.

Marie Owens Thomsen, IATA's senior vice president for sustainability and chief economist, described CORSIA as evidence of what governments can achieve through international cooperation at a time of growing fragmentation. She said the scheme helps maintain a level playing field for aviation and channels climate finance towards emissions reductions across the world. Broad participation, consistent implementation and continued government support would be essential to turning that foundation into a lasting example of effective climate action and financing, according to IATA.

EU Carbon Proposals Put Airline Costs Under Scrutiny

The EU's review of its Emissions Trading System includes proposals to extend the scheme to destinations within 5,000 kilometres of the bloc, using Frankfurt as the geographic centre, and introduce a mechanism for developing comparable carbon-pricing systems with third countries. IATA opposes the proposed expansion and the mechanism described as "EU ETS as a Service", arguing that regional or bilateral systems operating alongside CORSIA could undermine the global approach. Its analysis estimates that the expanded scope would raise EU ETS compliance costs by 40%, bringing the total to €280 billion over the 2027–2040 period.

IATA says the absence of an impact assessment leaves the potential consequences for third countries, international connectivity, competitiveness and CORSIA's operation unclear. Thomas Reynaert, the association's senior vice president for external affairs, called for the EU review to reinforce CORSIA and support aviation's transition through investment in cleaner energy. His concern is that additional carbon costs would increase the financial burden without resolving the sector's underlying energy constraints, making the use of aviation revenues an important part of the debate.

Cleaner Fuel Investment Leads IATA's Reform Demands

IATA's recommendations call for full, unified implementation of CORSIA for international aviation, no extension of EU ETS beyond the EU's territory and removal of the proposed parallel carbon-pricing mechanism. The association also wants stronger support through the Sustainable Aviation Fuel allowances mechanism, with additional assistance available immediately instead of starting only in 2029. Removing geographic production restrictions and extra conditions that limit support for sustainability-compliant fuel pathways would broaden access to that assistance. Ringfencing aviation-generated ETS revenues for sustainable fuel production, infrastructure and emerging aviation technologies is another central demand, which IATA links to Europe's competitiveness, resilience and long-term energy security. The association has shared its revised analysis and recommendations with European policymakers as the legislative process continues.