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CORSIA Emissions Reduction Scheme Takes Shape

August 7, 2026

2 min read

Key Takeaways

CORSIA aims to reduce 200 million tonnes of CO2 emissions.
The scheme generates $4-$5 billion in climate finance.
Airlines must offset international CO2 emissions by purchasing EEUs.
Second phase starts in 2027, becoming mandatory for all ICAO members.

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Strategic Implications

The CORSIA scheme may indicate a significant shift in the aviation industry's approach to carbon emissions reduction. The involvement of multiple stakeholders, including governments and companies, suggests a collaborative effort to address the issue, which could lead to a more effective and sustainable solution.

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What Happened

Global Aviation Industry Unites To Offset Carbon Emissions

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is now in its first phase, with around 130 participating countries. Airlines flying between these countries must offset their international CO2 emissions by purchasing Eligible Emissions Units (EEUs). IATA estimates that CORSIA will generate $4-$5 billion in climate finance and reduce around 200 million tonnes of CO2. The scheme’s success is crucial for the aviation industry’s decarbonization efforts, and its implementation may be impacted by regulatory developments, such as the European Union Emissions Trading System (EU ETS). This article was first reported by an unknown source.

Source | Originally Published: August 2, 2026

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