Carbon plan adds burden on aviation

Although complying with a carbon offsetting initiative will place a financial burden on airlines in Vietnam, forcing them to spend tens of millions of US dollars annually, the move is deemed an environmentally responsible one.

- By Oanh Nguyen

According to data shared at a meeting organised by the United Nations Development Programme (UNDP) and partners on March 26 in Hanoi, the market recorded carbon credit prices in 2025 that fluctuated around $20-23 per tonne, and which could experience significant volatility, reaching over $60 per tonne depending on supply and demand.

Meanwhile, the global cost of compliance to the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) is estimated at $1.3-4 billion, equivalent to approximately 0.4 per cent of the airline industry's annual operating costs.

With the Civil Aviation Authority of Vietnam having joined Corsia on January 1, domestic airlines have to comply with the emission offsetting requirement by purchasing carbon credits, demonstrating a responsible commitment to fulfilling international obligations on aviation environmental protection.

Corsia compliance over the next 10 years requires Vietnamese airlines to offset between 10.7 and 15.4 million carbon credits, with an estimated cost of $345-500 million for the entire period.

Francesca Nardini, deputy resident representative of the UNDP in Vietnam, commended the country for its decision to participate in the first voluntary phase of Corsia.