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The costs of EU ETS and Corsia for European aviation

September 23, 2020

A study commissioned by T&E and conducted by TAKS analysed the cost impact for airlines of applying two options to integrate ICAO’s offsetting scheme (Corsia) alongside the EU emissions trading system (EU ETS).

The study analysed the cost for airlines if Corsia was applied only to outbound flights or if it was applied on outbound and intra-EU flights covered by the ETS as well. It included low and high-price scenarios for ETS allowances and Corsia offsets.

It is also accompanied by an add-on analysis which compares the financial impact Corsia and ETS was expected to have before and after COVID. It takes into account the reduction in air traffic, expected to bounce back to 2019 levels in 2024 and ICAO’s change to Corsia’s baseline, which will result in reduced offsetting obligations for airlines. The briefing below summarises the findings of both.

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