Aviation Carbon Strategy & CORSIA Solutions
Carbon Market Access, SAF Integration and Net Zero Aviation Pathways
Power Group
Industry Context
The Aviation Industry Faces a Critical Decarbonisation Inflection Point
The global aviation sector is under mounting structural pressure to reduce its carbon footprint without compromising the operational growth that underpins commercial viability. Regulatory frameworks are tightening, capital markets are recalibrating ESG risk, and passenger expectations are evolving faster than many operators anticipated. The window for proactive, strategic action is narrowing.
The Core Challenge
Aviation (domestic and international) accounts for approximately 2.5% of global CO₂ emissions from human activity (ICAO/IPCC AR6, 2022). When non-CO₂ effects — including contrails, nitrogen oxides and water vapour — are included, the sector's contribution to global warming rises to approximately 6% (Allianz Trade / Lee et al., Atmospheric Environment, 2021). ICAO's 193 member states adopted a Long-Term Aspirational Goal (LTAG) of net-zero CO₂ emissions from international aviation by 2050 at the 41st ICAO Assembly in 2022.
Key Pressure Drivers
- CORSIA compliance obligations: pilot phase (2021–2023) and first phase (2024–2026) are voluntary; second phase (2027–2035) becomes mandatory for nearly all international flights (ICAO Annex 16, Volume IV)
- As of 2026, 130 States voluntarily participate in CORSIA (ICAO Council, January 2026)
- EU ReFuelEU Aviation Regulation (EU) 2023/2405 mandates minimum 2% SAF blend at EU airports from 2025, rising to 6% in 2030 and 70% in 2050
- Institutional investor ESG screening and exclusion criteria increasingly applied to aviation sector
- SAF supplied only ~0.3% of global jet fuel demand in 2024 (IATA, December 2024), highlighting the scale-up urgency
- Growing passenger demand for verifiable sustainability credentials and transparent carbon reporting
Power Group · Aviation Carbon Strategy & CORSIA Solutions
Decarbonisation Architecture
Global Aviation Decarbonisation: The Six Pillars
No single lever will deliver net zero aviation. The pathway requires an integrated, multi-pillar strategy that addresses emissions at source, transitions fuel infrastructure, and deploys high-integrity carbon finance where residual emissions remain unavoidable. ICAO's 193 member states adopted a Long-Term Aspirational Goal (LTAG) of net-zero COâ‚‚ from international aviation by 2050 (Resolution A41-22, 2022). Power Group advises across each pillar with institutional-grade rigour.
Each pillar carries distinct risk, cost, and compliance implications. Power Group structures bespoke decarbonisation portfolios that optimise across all six — balancing near-term CORSIA compliance with long-term strategic value creation aligned with ICAO's 2050 net-zero LTAG.
Power Group · Aviation Carbon Strategy & CORSIA Solutions — Sources: ICAO Resolution A41-22; ICAO CAAF/3 2023; IATA Dec 2024; EASA ReFuelEU Regulation EU 2023/2405
Regulatory Framework
Understanding CORSIA: The Global Aviation Carbon Offset Scheme
The Carbon Offsetting and Reduction Scheme for International Aviation — CORSIA — is the first global market-based measure applying to an entire sector. Established by ICAO Resolution A39-3 (2016) and reaffirmed at the 41st and 42nd ICAO Assemblies, CORSIA is designed to achieve carbon-neutral growth for international aviation from 2020 onwards. It is the single most significant compliance framework facing international carriers today.
1
Pilot Phase
2021–2023 · Voluntary participation. Baseline data collection, MRV infrastructure established. Approximately 99% of 2024 CO₂ emissions reported through the CORSIA Central Registry (CCR). (Source: ICAO Newsletter, January 2026)
2
First Phase
2024–2026 · Voluntary participation. As of 2026, 130 States participate. Offsetting obligations activated for routes between participating State pairs. 2026 is the final year of this phase. (Source: ICAO Council, January 2026)
3
Second Phase
2027–2035 · Participation determined by 2018 Revenue Tonne Kilometres (RTK) data — effectively mandatory for nearly all international flights. Full offsetting obligations across all covered routes. (Source: ICAO Annex 16, Volume IV)
4
ICAO LTAG
2050 · Net-zero CO₂ emissions from international aviation. Adopted by 193 ICAO member states at the 41st Assembly, 2022. (Source: ICAO Resolution A41-22)
How CORSIA Works
Airlines must monitor, report and verify (MRV) annual CO₂ emissions on international routes between participating State pairs. Where sector-level growth exceeds the 2019–2020 baseline, operators must acquire and surrender CORSIA Eligible Emissions Units (CEUs) — verified carbon credits from ICAO-approved programmes including Verra VCS, Gold Standard, American Carbon Registry, Climate Action Reserve, and others (ICAO document 'CORSIA Eligible Emissions Units', April 2026 edition).
Airline Obligations
- Annual COâ‚‚ emissions monitoring via ICAO CORSIA COâ‚‚ Estimation and Reporting Tool (CERT)
- Submission of verified Emissions Reports to State authorities (deadline: 30 April each year per ICAO Annex 16, Vol. IV)
- Procurement and cancellation of CORSIA Eligible Units (CEUs) equal to total offsetting requirements
- Registry account management via the CORSIA Central Registry (CCR)
- Compliance cycle reporting to State authorities by 30 November each year
Benefits of Early Preparation
- Priority access to high-quality, lower-cost CEU inventories before mandatory Phase 2 demand compresses supply from 2027
- Reduced exposure to credit price volatility as CORSIA demand intensifies through 2035
- Enhanced ESG positioning with institutional investors and rating agencies
- Operational MRV readiness ahead of mandatory phase escalation in 2027
- Stronger narrative for green financing and sustainability-linked instruments
Power Group · Aviation Carbon Strategy & CORSIA Solutions — Sources: ICAO Annex 16 Vol. IV; ICAO Newsletter Jan–Feb 2026; ICAO Council Resolution A41-22
Our Capabilities
Power Group: Integrated Aviation Carbon Solutions
Power Group delivers institutional-grade carbon market access and climate finance advisory purpose-built for the aviation sector. Our capabilities span the full CORSIA compliance lifecycle — from baseline assessment and credit sourcing to registry management and long-term sustainability strategy. We operate at the intersection of carbon markets, climate finance, and aviation operations.
Carbon Credit Sourcing
Curated access to high-integrity, CORSIA Eligible Units across approved standards and geographies.
CORSIA Eligible Credits
Verified unit procurement aligned with ICAO eligibility criteria and airline compliance timelines.
Carbon Project Development
End-to-end structuring of proprietary carbon projects — nature-based, technology, and removal solutions.
Sustainability Advisory
Strategic guidance on net zero roadmaps, ESG disclosure, and aviation decarbonisation frameworks.
Climate Finance Solutions
Green bond structuring, sustainability-linked loan advisory, and carbon fund access for aviation clients.
Registry Access
Direct registry account management across Verra, Gold Standard, and CORSIA-approved platforms.
Power Group · Aviation Carbon Strategy & CORSIA Solutions
Hybrid Strategy
SAF + Carbon Credit Strategy: The Accelerated Net Zero Pathway
Neither SAF adoption nor carbon credit procurement alone is sufficient to achieve credible net zero commitments at pace. SAF supplied only ~0.3% of global jet fuel demand in 2024 (IATA, December 2024), while CORSIA Phase 2 mandatory obligations begin in 2027. Power Group's hybrid model integrates four complementary levers into a single, coherent decarbonisation architecture — optimised for cost efficiency, compliance certainty, and ESG integrity.
Aircraft Efficiency
Route optimisation, weight reduction, and next-generation fleet integration. ICAO's CAAF/3 conference (2023) set a global aspirational vision to reduce COâ‚‚ from international aviation by 5% in 2030 through SAF and operational improvements combined.
SAF Adoption
Structured SAF offtake agreements and blending strategies. EU ReFuelEU Aviation (Regulation EU 2023/2405) mandates 2% SAF at EU airports from 2025, rising to 6% in 2030 and 70% in 2050. SAF can reduce lifecycle CO₂ by 60–90% vs conventional jet fuel (EASA, 2024). In 2024, average SAF price was €2,085/tonne vs €734/tonne for conventional jet fuel (EASA Annual Technical Report, October 2025).
Carbon Credits
High-integrity CORSIA Eligible Units (CEUs) from ICAO-approved programmes (Verra VCS, Gold Standard, ACR, CAR, Global Carbon Council) bridging residual emissions gaps. CORSIA Phase 2 (2027–2035) will be mandatory for nearly all international flights.
Carbon Removals
Long-duration removal projects — Direct Air Carbon Capture and Storage (DACCS), Bioenergy with CCS (BECCS), and high-permanence nature-based solutions — addressing hard-to-abate residual emissions on the path to ICAO's 2050 net-zero LTAG.
Power Group · Aviation Carbon Strategy & CORSIA Solutions
Market Opportunities
Aviation Sector Coverage: Who We Serve
Power Group's aviation carbon solutions are structured to serve the full breadth of the aviation ecosystem. Whether you operate aircraft, own infrastructure, finance assets, or manage cargo networks, CORSIA obligations and ESG pressures are reshaping your risk profile and capital access. We deliver tailored solutions across each client segment.
Commercial Airlines
Full CORSIA compliance lifecycle management, credit procurement, and net zero roadmap advisory for scheduled and charter carriers of all sizes.
Cargo Operators
Emissions reporting, CORSIA unit sourcing, and SAF integration strategy for freighter fleets navigating rising regulatory and shipper ESG requirements.
Airport Operators
Scope 1, 2 and 3 emissions strategy, carbon project development, and green infrastructure financing aligned with ACI Airport Carbon Accreditation.
Aviation Leasing Companies
ESG integration for asset portfolios, green financing structuring, and sustainability disclosure advisory for lessors managing transition risk.
Aviation Infrastructure Groups
Long-term decarbonisation strategy, carbon finance access, and sustainability reporting for aviation infrastructure investors and concession operators.
Power Group · Aviation Carbon Strategy & CORSIA Solutions
Value Creation
Financial & Strategic Benefits of a Proactive Carbon Strategy
A well-structured aviation carbon strategy is not a compliance cost — it is a source of measurable financial and strategic value. Airlines and aviation operators that position carbon strategy as a core business function are accessing better financing terms, stronger investor relationships, and competitive differentiation that translates directly to commercial advantage.
Financial Benefits
- Access to Green Financing — preferential terms on green bonds and sustainability-linked loans aligned with EU Taxonomy and ICAO frameworks
- Compliance Cost Management — early CORSIA Eligible Unit procurement locks in lower unit costs ahead of mandatory Phase 2 demand from 2027
- Risk Reduction — carbon price volatility hedged through structured procurement and long-term project development agreements
- Asset Value Protection — ESG-aligned fleets and infrastructure retain institutional investor appeal through the energy transition
Strategic Benefits
- ESG Positioning — credible, verifiable sustainability credentials for investor, regulator and passenger audiences
- Reputation Enhancement — proactive leadership narrative ahead of mandatory CORSIA Phase 2 escalation in 2027
- Investor Relations — alignment with institutional investor ESG screening criteria and sustainability index eligibility
- Long-Term Strategy — a robust, multi-decade decarbonisation roadmap aligned with ICAO's 2050 net-zero LTAG (Resolution A41-22)
$1T+
Sustainable Aviation Investment
Estimated sustainable finance mobilisation needed for aviation decarbonisation through 2050 (IEA, 2023)
130
CORSIA Participating States
States voluntarily participating in CORSIA as of 2026 (ICAO Council, January 2026)
0.3%
SAF Share in 2024
SAF's share of global jet fuel demand in 2024 — highlighting the scale-up urgency (IATA, December 2024)
2050
ICAO Net Zero Target
ICAO Long-Term Aspirational Goal for net-zero COâ‚‚ from international aviation (Resolution A41-22, 2022)
Power Group · Aviation Carbon Strategy & CORSIA Solutions — Sources: ICAO Resolution A41-22; ICAO Council Jan 2026; IATA Dec 2024; IEA Aviation 2023
Engagement Model
Implementation Framework: Five Phases to Net Zero Readiness
Power Group's structured engagement methodology ensures every aviation client moves from initial assessment to continuous optimisation through a disciplined, phased process. Each phase is designed to deliver standalone value while building the cumulative infrastructure for long-term decarbonisation success — aligned with CORSIA's MRV calendar and ICAO's 2050 net-zero LTAG.
Phase 1 · Assessment
Comprehensive baseline CO₂ emissions measurement using the ICAO CORSIA CO₂ Estimation and Reporting Tool (CERT), CORSIA obligation modelling for current and Phase 2 (2027–2035) scenarios, and gap analysis across operations, fleet, and fuel mix. Establishes the foundation for all subsequent strategic decisions.
Phase 2 · Carbon Strategy
Development of a bespoke, multi-lever decarbonisation roadmap integrating operational efficiency improvements, SAF adoption targets (aligned with EU ReFuelEU Regulation EU 2023/2405 and ICAO CAAF/3 2023 goals), CORSIA Eligible Unit procurement planning, and carbon removal project identification — aligned with ICAO's 2050 net-zero LTAG (Resolution A41-22).
Phase 3 · Credit Procurement
Structured acquisition of CORSIA Eligible Units (CEUs) from ICAO-approved programmes (Verra VCS, Gold Standard, American Carbon Registry, Climate Action Reserve, Global Carbon Council — per ICAO document 'CORSIA Eligible Emissions Units', April 2026 edition). Registry account setup via the CORSIA Central Registry (CCR), unit verification, and compliance cycle management.
Phase 4 · Monitoring & Reporting
Ongoing MRV support aligned with ICAO Annex 16, Volume IV deadlines: verified Emissions Reports submitted by 30 April annually; State reporting to ICAO via CCR by 31 July; offsetting requirements communicated to operators by 30 November. ESG disclosure preparation and investor reporting alignment across applicable frameworks.
Phase 5 · Continuous Optimisation
Annual strategy review, CEU portfolio rebalancing ahead of CORSIA Phase 2 mandatory escalation in 2027, emerging market opportunity assessment, and roadmap adjustment as technology, regulation, and carbon markets evolve through to the 2050 ICAO net-zero LTAG.
Power Group · Aviation Carbon Strategy & CORSIA Solutions — Sources: ICAO Annex 16 Vol. IV; ICAO CORSIA Newsletter Feb 2026; ICAO Resolution A41-22; ICAO 'CORSIA Eligible Emissions Units' April 2026
Building the Future of Sustainable Aviation
Through carbon markets, climate finance, and CORSIA-aligned solutions, Power Group is the institutional partner of choice for aviation's net zero transition. We bring market depth, regulatory expertise, and strategic rigour to every client engagement — ensuring that compliance obligations become competitive advantages on the path to ICAO's 2050 net-zero LTAG.
Carbon Markets
Deep access to CORSIA Eligible Units from all ICAO-approved programmes and voluntary carbon credits across verified standards — aligned with ICAO 'CORSIA Eligible Emissions Units' April 2026 edition.
Climate Finance
Green bond structuring, sustainability-linked instruments, and carbon fund access for aviation operators — aligned with EU Taxonomy and ICAO climate finance frameworks.
CORSIA Solutions
End-to-end compliance management from baseline CO₂ assessment through MRV reporting, CEU procurement, and unit retirement — aligned with ICAO Annex 16, Volume IV and the CORSIA Central Registry (CCR).
"The airlines and aviation operators that act now — building carbon strategy infrastructure before CORSIA Phase 2 mandatory obligations begin in 2027 — will define the competitive landscape of sustainable aviation through to 2050."— Power Group Aviation Carbon Advisory
Power Consulting Group · Aviation Carbon Strategy & CORSIA Solutions — Carbon Markets · Climate Finance · Sustainable Aviation Advisory
Power Group · Aviation Carbon Strategy & CORSIA Solutions · Confidential — For Institutional Use Only