The pros and cons of taking on carbon offset compliance

Vietnam's aviation sector is entering a pivotal phase as it prepares to meet the requirements of the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia), a global mechanism that is reshaping how airlines manage emissions and carbon costs.

- By Dang Hong Hanh Carbon market expert Vietnam PoA Carbon Management

This process offers several effective solutions with both pros and cons.The International Civil Aviation Organization recommended four CO₂ emission reduction options: aircraft technologies, operational improvements, using sustainable aviation fuel (SAF), and usage of Corsia Eligible Emissions Units (EEUs) for offsetting.

The improvement of aircraft technologies will help reduce direct emissions on each flight, leading to a reduction in the total offsetting requirement. These emission reductions will not directly be a replacement for offsetting obligations.

According to Airbus, aeroplanes using A320 neo engines have fuel consumption and emissions 20 per cent lower compared to older generation aeroplanes.

In Vietnam, airlines started using neo aeroplanes from 2018. However, this method has a disadvantage, including a high investment cost. The cost of purchasing Neo aeroplanes is more than $10 million higher. In addition, it has supply constraints, as Airbus and Boeing need over 10 years to fulfil existing orders.

Regarding the operational improvement solution, this method has emission reduction potentials in the short and midterm, without high investment cost. However, these measures cannot completely reduce the aviation sector’s emissions.