Airlines delay climate action amid policy uncertainty

The aviation sector is facing significant challenges with its carbon offsetting scheme, CORSIA. While participation has been voluntary since 2021, it is set to become mandatory for international travel between 134 ICAO member states starting in 2027. This international climate agreement, despite gaining consensus from reluctant nations like Saudi Arabia and Russia, has been criticized for its weak enforcement and negligible environmental benefits. Airlines are currently hesitant to invest in the scheme, primarily due to uncertainty surrounding potential policy shifts in the United States and the European Union. The US stance remains unpredictable under the current administration, and the EU is considering expanding its own emissions trading scheme, which could impose higher costs on airlines. This hedging behavior has led to a lack of expected buying activity in the carbon credit market. Furthermore, concerns about the quality of available carbon credits, many of which are 'avoidance units' rather than 'removal credits,' and the risk of reputational damage are contributing to airline reluctance. The effectiveness of CORSIA is questioned, with suggestions for improvements including increased SAF production, covering all international aviation emissions, tackling contrails, and incorporating carbon credit ratings to ensure project integrity and standardized enforcement.