Airlines face new carbon offset costs under CORSIA growth factor

Singapore freight forwarders – Star Concord
20-Jan-2026
  • Airlines participating in ICAO’s global carbon scheme (CORSIA) must now resume carbon offsetting, as international aviation emissions have exceeded the 85 percent of 2019 levels that define the scheme’s baseline.
  • The Sectoral Growth Factor (SGF) for 2024 is positive for the first time since COVID-19, triggering offset obligations for airlines in over 120 voluntarily participating states.
  • The scheme will become mandatory from 2027. Experts emphasise that airlines must now adopt long-term decarbonisation strategies—including Sustainable Aviation Fuel (SAF) and integrated carbon credit procurement—to stay ahead of rising regulatory and sustainability pressures.

International aviation emissions have officially surpassed the CORSIA baseline for the first time since the pandemic, triggering offset obligations for participating airlines under ICAO’s global carbon scheme.

According to newly released data from the International Civil Aviation Organisation (ICAO), the Sectoral Growth Factor (SGF) for 2024 is set at 0.15948315, marking a key milestone in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The positive SGF indicates that emissions have exceeded 85 percent of 2019 levels, the baseline used for offset calculations.

Airlines in participating states must now purchase and cancel eligible carbon credits to compensate for their emissions growth, reactivating compliance responsibilities that had been largely dormant during the pandemic downturn.

The scheme entered its First Phase (2024–2026) this year, with over 120 countries voluntarily participating—including major aviation markets such as the EU, UK, US, UAE, Japan, and Brazil. The Second Phase (2027–2035) will make participation mandatory for nearly all ICAO member states, excluding only the least developed, landlocked, or small island nations.

“This shift will bring nearly all internationally operating airlines under the CORSIA compliance framework,” said Alexey Zotov, General Manager of ACGC S.a.r.l., part of the ACN Group. “Airlines will be obliged to purchase carbon credits through one of several recognised channels.”

Approved procurement options include direct purchases from carbon registries, aviation-focused carbon marketplaces, and long-term contracts linked to sustainability projects such as REDD+ forestry, biogas, methane reduction, and renewable energy.

While CORSIA is designed to provide a short-term compliance mechanism, pressure is mounting for airlines to pursue real emissions reductions. Sustainable Aviation Fuel (SAF) remains the sector’s most promising long-term decarbonisation solution, and industry observers say integrated carbon + SAF procurement strategies will be essential as regulatory scrutiny intensifies.

“Environmental costs will become a permanent part of freight pricing,” Zotov noted. “Airlines preparing now—by combining offset purchases with SAF strategies—will be better positioned for the post-2027 regulatory landscape.”

ACGC S.a.r.l. is among the organisations supporting airlines with tailored compliance services, including carbon credit solutions, SAF procurement, digital sustainability tools, and advisory on emissions monitoring.

The post Airlines face new carbon offset costs under CORSIA growth factor appeared first on Air Cargo Week.

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Author: Anastasiya Simsek