The International Air Transport Association has called on governments to strengthen the global carbon-offsetting framework for international aviation, warning that proposals to widen Europe’s emissions trading system could create overlapping obligations and increase airline costs.
The appeal, issued on October 6, marks ten years since the International Civil Aviation Organization adopted the resolution establishing the Carbon Offsetting and Reduction Scheme for International Aviation, known as CORSIA. Agreed at ICAO’s 2016 Assembly, the scheme established the first global market-based measure for an industrial sector, following the Paris Agreement a year earlier.
The anniversary comes as the European Union reviews its Emissions Trading System, or EU ETS. According to IATA, proposals under consideration would extend its scope to destinations within 5,000 kilometres of the EU, using Frankfurt as the geographic reference point. They would also introduce a mechanism allowing comparable carbon-pricing systems to be developed with third countries.
IATA argues that these measures risk weakening a common international approach by encouraging parallel regional and bilateral systems.
“The EU ETS review should reinforce CORSIA as the global framework for international aviation, not encourage overlapping regional or bilateral systems,” said Thomas Reynaert, IATA’s senior vice president for external affairs.
The association estimates that the proposed expansion would increase EU ETS compliance costs by 40%, bringing the total to €280 billion over the 2027–2040 period. It said the absence of an impact assessment leaves unanswered questions about the consequences for third countries, international connectivity, airline competitiveness and CORSIA’s operation.
More than 130 countries now participate in CORSIA, according to IATA. The association expects the scheme to have mitigated approximately 200 million tonnes of carbon dioxide by the end of 2026 and says its coverage is projected to reach approximately 85% of international aviation emissions from 2027.
IATA also estimates that CORSIA could mobilise up to $120 billion in climate finance over the scheme’s lifetime, supporting emissions-reduction and carbon-removal projects worldwide.
Those figures are industry projections. CORSIA operates through eligible carbon credits used to offset emissions above an established baseline, meaning its mitigation contribution includes reductions financed outside aviation rather than solely reductions in aircraft emissions. Airlines must purchase and cancel eligible emissions units to meet their offsetting obligations.
Marie Owens Thomsen, IATA’s senior vice president for sustainability and chief economist, described CORSIA as an example of international cooperation that maintains a level playing field while directing finance towards climate projects.
She said broader participation, consistent implementation and sustained government support would be essential to realising the scheme’s potential, particularly as international policymaking becomes increasingly fragmented.
Alongside its defence of CORSIA, IATA is urging European policymakers to direct more aviation-generated carbon revenues towards the sector’s energy transition.
The association wants EU ETS revenues from aviation ringfenced for sustainable aviation fuel production, infrastructure and emerging aviation technologies. Reynaert argued that investment in these areas would deliver greater climate and competitiveness benefits than additional carbon costs that leave aviation’s underlying energy constraints unresolved.
IATA is also seeking stronger support through the EU’s SAF allowances mechanism, with additional assistance available immediately rather than only from 2029. It called for the removal of geographic production restrictions and other conditions that limit support for fuel pathways meeting sustainability requirements.
On international carbon pricing, the association wants governments to implement CORSIA consistently without extending the EU ETS beyond European territory. It also called for the proposed “EU ETS as a Service” mechanism to be removed, arguing that it would encourage competing carbon-pricing arrangements.
The intervention places two priorities at the centre of IATA’s position on the European review: preserving a common framework for international aviation emissions and using carbon revenues to expand the supply of cleaner aviation energy. For the association, the tenth anniversary of CORSIA is an opportunity to reinforce both.
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