The Civil Aviation Authority of Viet Nam (CAAV) has agreed to participate in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) starting from the voluntary phase on January 1, 2026. Joining CORSIA is equivalent to Viet Nam signing an international agreement. The CAAV emphasizes that this initiative will require the collective effort and support of various ministries, sectors, and agencies within and outside the aviation industry.
CORSIA, introduced by the International Civil Aviation Organization (ICAO), aims to reduce and offset carbon emissions from international flights, contributing to the civil aviation sector's goal of achieving net-zero emissions by 2050. In preparation for this transition, the Ministry of Transport and the CAAV have been actively implementing tasks related to CORSIA, including monitoring, reporting, and verifying carbon emissions from international flights. Vietnam has already reported emission data to ICAO from 2019 through 2023.
ICAO has divided the carbon offsetting under CORSIA into two phases: voluntary participation from 2021-2026 and mandatory from 2027-2035.
Initial estimates suggest that Vietnam's aviation sector will incur costs ranging from a minimum of USD 13 million to a maximum of USD 92 million for purchasing carbon credits to offset emissions during the voluntary phase, depending on credit prices (USD 6 to USD 40). If Viet Nam participates from January 1, 2025, the estimated carbon credit costs in 2025 would range from USD 4.6 million to USD 31 million, and in 2026, from USD 5.6 million to USD 37.5 million.
The CAAV acknowledges that Vietnamese airlines will face significant financial challenges if they enter the voluntary phase of CORSIA even one year earlier. As such, the CAAV has decided to target January 1, 2026, for the start of voluntary participation.