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Reference & tool · calculator section is draft

Understanding ETS & CORSIA

How aviation ended up with more than one carbon scheme, how EU/UK ETS and CORSIA actually differ mechanically, and a working calculator for CORSIA's offsetting requirement.

How we got here

2012
2013
2016
2021
2024-2027
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Five moments that explain why aviation ended up with more than one overlapping carbon scheme, not one system that evolved cleanly.

ETS vs CORSIA, the technical differences

EU / UK ETSCORSIA
MechanismCap-and-tradeOffsetting against a baseline
What's pricedEvery tonne of CO2 on covered flightsOnly tonnes above 85% of 2019 levels (the baseline)
What you buyAllowances (EUA/UKA) - one instrument, capped supply, exchange-tradedEligible emissions units from approved offset programs (Gold Standard, Verra, ACR) - heterogeneous quality and pricing
Price behaviourMarket-driven, moves daily; ~€80/t (EU), ~£72/t (UK)No single traded price; unit prices vary by program, roughly $5-20/t
Route scopeIntra-jurisdiction (EU ETS: intra-EEA; UK ETS: domestic UK)International flights between two CORSIA-participating states only
TrajectoryCap tightens yearly (Linear Reduction Factor) - deliberately drives emissions downNo mandated reduction below baseline, just "no net growth" above 2019
Compliance mathEmissions × 1 allowance/tonne - full exposure, no formulaEmissions × Sector's Growth Factor - a fraction, not the whole
The part that trips people up: "global scheme" doesn't mean "bigger cost." Because CORSIA only charges for growth above a 2019 baseline, and its eligible units price far below EUA, actual dollar exposure under CORSIA is currently much smaller per tonne than under EU ETS, even though EU ETS covers a far smaller slice of the network. The EU's proposed 5,000km scope extension is explicitly designed as a "top up" to CORSIA, not a stack, where both would apply to the same route, the EU ETS obligation is reduced to reflect what's already paid under CORSIA, so operators aren't double-charged for the same tonne.
Everything below this point is a draft, not yet published as a finished tool. The formula and 2024 figures are cross-checked against ICAO's own published Sector's Growth Factor calculation and match to 7 decimal places (see worked example). What hasn't been independently checked yet: edge cases around State-pair eligibility, the CORSIA-eligible-fuel deduction, and the 2030+ individual growth factor blend. Sitting here until a compliance professional has reviewed it.

Calculate an offsetting requirement

Emissions from flights between two CORSIA-participating States only, not an operator's total emissions.
2021-2029 uses the 100% sectoral approach. 2024 uses ICAO's actual published Sector's Growth Factor. Later years are provisional, ICAO publishes each year's SGF the following year.
Sector's Growth Factor (SGF) for this year-
FormulaOR = Operator emissions × SGF
Estimated offsetting requirement -

How the Sector's Growth Factor is actually calculated

The formula

SGF_y = (SE_y − SE_B,y) / SE_y

SE_y is total sectoral CO2 emissions, across all operators, for CORSIA-applicable State pairs in year y. SE_B,y is the baseline: 85% of total 2019 sectoral CO2 emissions for those same State pairs. ICAO calculates and publishes this centrally, once a year, for the whole sector, not per operator.

Worked example, ICAO's actual 2024 figures

2019 baseline (85% of applicable 2019 emissions): 305,522,071 t CO2. Actual 2024 emissions for the same State pairs: 361,159,641 t CO2.

SGF_2024 = (361,159,641 − 305,522,071) / 361,159,641 = 0.15405257, exactly what ICAO published. An operator with 50,000 t of CORSIA-covered emissions in 2024 owes 50,000 × 0.15405257 ≈ 7,703 t CO2 of offsetting.

What changes from 2030

From 2030, an Individual Growth Factor (an operator's own emissions growth, not just the sector's) enters the calculation alongside SGF, rising from 20% weight (2030-2032) to 70% weight (2033-2035). This calculator currently applies the pre-2030, 100%-sectoral formula only, the individual growth factor blend is not yet implemented, flagged above as unreviewed.

CORSIA-eligible fuel deduction, not yet built

An operator's final offsetting requirement for a compliance period is reduced by any emissions reductions claimed from CORSIA-eligible fuels (SAF that meets CORSIA's own eligibility criteria, using a fuel conversion factor of 3.16 kg CO2/kg for Jet-A). That deduction isn't in this calculator yet, current output is the pre-deduction offsetting requirement, a ceiling, not the final number an operator would actually owe after claiming eligible fuel use.

Published Sector's Growth Factors by year

YearSGFStatus
2021-2023 (Pilot)~0 (voluntary, baseline effectively reset post-COVID)Published
20240.15405257Published (ICAO, 2025)
2025 onwardNot yet publishedICAO publishes each year's SGF the following year