The International Civil Aviation Organization (ICAO) has warned that the European Commission's proposal to expand the EU Emissions Trading System (EU ETS) to cover aviation from 2029 could undermine the global CORSIA carbon offset scheme. ICAO argues the unilateral move would create duplicate carbon pricing for international flights and fragment global decarbonization efforts. CORSIA, approved by ICAO member states since 2016, was designed as the only global market-based measure for international aviation emissions. The EU played a key role in building consensus for CORSIA, but the new EU ETS expansion risks double charging airlines and disrupting the level playing field needed for the sector's net-zero transition. The ICAO Assembly in 2025 reaffirmed its mandate to advance CORSIA as the primary tool. This clash between regional and global carbon pricing mechanisms highlights a growing tension in climate policy. For carbon market participants, the outcome will affect carbon credit demand from aviation offsets and the integrity of international emissions accounting.
