A comparison between ICAO's CO2 offsetting scheme and the EU ETS for aviation

In October 2016, the UN’s aviation body ICAO agreed on a global market-based measure to address CO2 emissions from aviation. The measure is called Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The EU had decided to include all departing and arriving flights in its emissions trading system from 2012. But in 2012, under pressure from industry and other states, it decided to temporarily reduce the scope to flights between airports in the EEA and Switzerland in order to allow ICAO to complete its negotiations.

Now that the CORSIA has been agreed, the EU will review the inclusion of aviation in the EU ETS. The European Commission is to provide a report considering options for the coverage of aviation emissions. As specified in the regulation that temporarily reduces the scope of the EU ETS, “the Commission should also give particular consideration to the environmental effectiveness of the European Union Emissions Trading System (EU ETS)”.

This study, accompanied by T&E's briefing, presents a comparative analysis of CORSIA and various scopes for the inclusion of aviation in the EU ETS.