Vietnam's entry into global aviation carbon scheme may strain airlines financially. (Photo: Wikipedia Commons)
The Vietnamese government has committed to join the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), a global climate initiative aimed at reducing carbon emissions from international flights.
By regulating emissions and using carbon credits, it is expected to attract at least USD 5.6 million in annual investment into its carbon market. However, the move may also impose significant financial burdens on the country’s aviation sector.
Aligning with global standards may raise costs for airlines
Launched by the International Civil Aviation Organization (ICAO) in 2016, CORSIA uses market-based measures to help the global aviation industry meet its climate goals. Vietnam plans to join in 2026, final voluntary phase of the scheme, and gradually reduce its aviation emissions. The goal is to cap emissions at 85% of 2019 levels during 2024–2035 and to reach net zero by 2035.
