Ideas for a level playing field in aviation
Copyright: Shutterstock/Warren Price
New PtX Lab Paper ‘ETS vs. CORSIA’ compares market-based mechanisms for promoting the uptake of electricity-based Sustainable Aviation Fuels
The market-based mechanisms in the aviation sector – most notably the European Union Emissions Trading System (EU ETS) and ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) – are designed to promote the uptake of electricity-based Sustainable Aviation Fuels (eSAF) yet face considerable challenges.
On the one hand, pressure to suspend the EU ETS is mounting, partly because it is limited to internal European flights, and partly because CORSIA is losing effectiveness as long as countries with particularly high aviation emissions remain outside the scheme. On the other hand, market-based mechanisms are indispensable for decarbonising the aviation sector. Fortunately, a growing number of countries are integrating domestic aviation into their national emissions trading systems. At the same time, the EU is preparing a comprehensive review of CORSIA to determine whether the EU ETS should be extended to international aviation in the future.
Market-Based Pathways to Aviation Decarbonisation: EU ETS, CORSIA and the Role of eSAF
Against this backdrop, the PtX Lab Paper ʽETS vs. CORSIA: Same Goal, Different Impact?’ compares the two market-based mechanisms in terms of their suitability for promoting eSAF and develops concrete scenarios for extending the EU ETS – with the aim of creating a level playing field for the European aviation industry while at the same time accelerating the market uptake of eSAF.
From the perspective of PtX Lab Lausitz, CORSIA currently lacks the potential to reduce emissions from international aviation, as it relies on offsetting measures outside the value chain that neither decrease aviation emissions nor include countries with higher aviation emissions.
Copyright: PtX Lab Lausitz
A Balanced Approach to a Level Playing Field in Aviation
Extending the EU ETS is essential to achieving a significant reduction in emissions from international aviation. The authors of the PtX Lab Paper advocate a balanced approach: 50% of emissions would be covered by an extension of the EU ETS, while the remaining 50% could be addressed through CORSIA, national ETS schemes, or carbon taxes introduced by other countries. This would provide other nations with the flexibility needed to develop their own systems incrementally.
Although both the EU ETS and CORSIA currently have shortcomings, extending national ETS schemes to cover 50% of flights could not only generate additional revenue for SAF production, but also pave the way for soft linkages between the various emissions trading systems in the long term.
Contact
Felix Schmermer
Head of Section PtX Policy & Market Ramp-Up
+49 162 72 44 695
Write E-Mail
more information
