IATA Urges Stronger CORSIA as EU Reviews Aviation Emissions Trading Rules

The International Air Transport Association (IATA) has called on governments to strengthen the foundations of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) as the global aviation sector marks the 10th anniversary of the landmark agreement.

Adopted by the International Civil Aviation Organization (ICAO) in 2016, CORSIA established the world’s first global market-based measure for an industrial sector. More than 130 countries now participate in the scheme, which is expected to have mitigated around 200 million metric tons of CO₂ by the end of 2026. From 2027, CORSIA is estimated to cover approximately 85% of global international aviation emissions. Up to $120 billion in climate finance could also be mobilized through the end of the program.

IATA also urged the European Union to ensure that its review of the EU Emissions Trading System (EU ETS) reinforces rather than undermines CORSIA. The association warned that expanding the EU ETS to destinations within 5,000 kilometers of the EU could create overlapping regional and global carbon-pricing systems.

IATA estimates the proposed expansion could increase aviation compliance costs by approximately €280 billion between 2027 and 2040. It called on Europe to direct aviation-related carbon revenues toward sustainable aviation fuel (SAF), infrastructure and emerging technologies to accelerate decarbonization while strengthening the sector’s competitiveness and energy security.