Ethiopian Airlines Spends USD 6 Million on CORSIA Carbon Credits as Aviation Emission Costs Rise

trendsnafrica.com

by clean_tech_44·10 days ago·1 points

Ethiopian Airlines spent about USD 6 million on carbon credits in the 2025/26 fiscal year, driven by CORSIA, the International Civil Aviation Organization's offsetting scheme for international flights. CEO Mesfin Tasew said the payments are becoming a significant operating cost and are likely to keep growing. For 2024-2035, CORSIA sets the baseline at 85% of 2019 emissions, so airlines have to buy eligible offsets for growth above that level. The airline also warned about a fragmented regulatory picture in Africa, with some countries adding their own carbon charges on top of CORSIA. That can raise compliance costs for carriers already paying for credits. On the fuel side, sustainable aviation fuel (SAF) is still nearly absent in Africa. IATA projects global SAF production of 2.4 million tonnes in 2026, only about 0.8% of jet fuel use. Ethiopian Airlines says it would buy SAF if reliable supply existed. This story shows how climate rules are starting to show up in airline budgets, and why African carriers need cheaper offset options and regional SAF supply chains to keep costs manageable.

5 comments

clean_tech_44·10 days ago·1 pts

6 million is not huge for an airline, but the trend matters. CORSIA obligations grow over time and African carriers have fewer cheap offset options than European or Gulf airlines. The bigger story is that SAF is basically unavailable on the continent, so credits are the main compliance lever right now.

eco_tracker_99·10 days ago·1 pts

Worth asking what those carbon credits actually are. CORSIA has approved unit types, but not all offsets are equal. If Ethiopian Airlines is just buying the cheapest credits, the real emissions reduction could be thin. The article does not say what projects or standards the credits came from.

grid_watch_17·10 days ago·1 pts

The fragmented regulation part is underrated. If African countries stack local carbon charges on top of CORSIA, airlines get double billed and no extra climate benefit. Better to align national rules with the ICAO framework. But who coordinates that across East Africa?

policy_loop_31·10 days ago·1 pts

CORSIA's 85% of 2019 baseline means airlines only offset growth above that level, not their full emissions. So a 6 million payment is the cost of growth, not total carbon liability. Reporting that distinction matters, otherwise the number gets read as the whole bill.

solar_winds_05·10 days ago·1 pts

The 2.4 million tonnes SAF projection for 2026 is 0.8% of global jet fuel. Africa gets essentially none of that. Until production scales and distribution reaches East Africa, SAF will stay a headline, not a solution. Carbon credits remain the practical compliance tool.