Important Updates to CORSIA after ICAO's 41st General Assembly

During the 41st General Assembly, ICAO discussed several topics, including the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), sustainable aviation fuel (SAF), and financial assistance for reducing carbon emissions. The baseline for CORSIA has been revised due to the COVID-19 pandemic, including using 2019 CO2 emissions as the baseline for the pilot phase (2021-2023) and 85% of 2019 CO2 emissions as the baseline after the pilot phase (2024-2035).
 

 

This formula accounts for both the overall sectoral growth and the individual aeroplane operator's growth to decide the specific offset requirement for each operator.
 

The sectoral percentage (% sectoral) is calculated as the difference between 100% and the individual percentage (% individual). The percentages are applied as follows:
 

The sector’s growth factor and operator’s growth factor from 2021 to 2035 will be recalculated annually. This recalculation considers the inclusion of routes to and from all States that have voluntarily participated or entered a new phase or compliance cycle. In other words, the emissions calculation takes into account the addition of new participating States and their associated emissions.
 

Sectoral:

The below formula provides a way to determine the growth factor for the sector's emissions over different time periods, relative to the emissions covered by CORSIA in 2019.
 

From 2021 through 2023: The sector's growth factor is determined by subtracting the total emissions covered by CORSIA in 2019 from the total emissions covered by CORSIA in the given year. This difference is divided by the total emissions covered by CORSIA in the given year.

From 2024 through 2035: The sector's growth factor is calculated by subtracting 85% of the total emissions covered by CORSIA in 2019 from the total emissions covered by CORSIA in the given year. This difference is then divided by the total emissions covered by CORSIA in the given year.

The formula to calculate the sector's growth factor in 2024 would be as follows:

 

CORSIA has released Annual Sector’s Growth Factor (SGF) for the Year 2021:

Given that the total CO2 emissions for all State pairs subject to offsetting requirements in 2021 were lower than the corresponding amount in 2019, thus the Annual Sector’s Growth Factor (SGF) for 2021 was 0.0%.
 

ICAO has published sector-wise emission data for the years 2019, 2020 and 2021 to keep transparency in calculating the sectoral growth factor:
 

 

Note: Paragraph 11(g) of the Assembly Resolution A41-22 notes that the sectoral baseline will be re-calculated when the routes included in CORSIA change. This can happen, for example, when new States volunteer to participate or States decide to withdraw their voluntary participation. The recalculation of the baseline will be done by ICAO at the start of each year

Individual:

Below is the formula to calculate the aeroplane operator's growth factor for the period from 2033 through 2035 under CORSIA
 

(AO = Aeroplane Operator)

The aeroplane operator's growth factor is determined by subtracting 85% of the aeroplane operator's emissions covered by CORSIA in 2019 from the aeroplane operator's emissions covered by CORSIA in the given year. The result is then divided by the aeroplane operator's emissions covered by CORSIA in the given year.

New entrants: New aeroplane operators are exempted from offsetting requirements for three years or until their annual emissions exceed 0.1% of total emissions in 2019, whichever comes earlier. After this period, they are included in the scheme like other aeroplane operators. However, all new entrants are subject to Monitoring, Reporting and Verification (MRV) from the day the operator is crossing the 10 000 tCO2 threshold.

Upcoming CORSIA Implementation Deadlines:

 

Reach out to us at contact@verfavia.com to learn more.

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