Market-based measures are instruments developed to achieve environmental goals less expensively and more flexibly than with conventional political regulatory mechanisms. Examples of market-based measures in aviation include emissions-based fees, emissions trading and CO2 offsetting mechanisms.
There are currently two mandatory market-based measures in Switzerland to compensate for CO2 aviation emissions, in addition to various voluntary measures and measures applied on a private basis. They make it possible to factor in and reduce the impact of aviation on the climate.
There are currently two mandatory market-based measures in Switzerland to compensate for CO2 aviation emissions, in addition to various voluntary measures and measures applied on a private basis. They make it possible to factor in and reduce the impact of aviation on the climate.
The first of these market-based measures, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), is a global instrument that is mandatory for the 193 member states of the International Civil Aviation Organization (ICAO). It came into force on 22 October 2018.
CORSIA is divided into three phases: a pilot phase (2021–2023), a first phase (2024–2026) and a second phase (2027–2035). For the first six years, participation is voluntary for ICAO Member States. From 2027 onwards, participation will be mandatory for all states and their airlines, unless they are exempt because of low traffic volume.
Since 1 January 2021, CORSIA requires that airlines offset their carbon emissions from international flights that exceed their 2019 emissions. From 2024 onwards, emissions exceeding 85% of 2019 emissions must be offset. This applies to international flights between states participating in CORSIA. Since 1 January 2023, a total of 115 countries, whose airlines cause the largest share of global emissions from international civil aviation, are participating. All 44 states of the European Civil Aviation Conference, including Switzerland, are currently participating voluntarily.
The elements necessary for implementing CORSIA are precisely defined in a binding aviation standard, Annex 16, Volume IV of the Chicago Convention (available at the bottom of this page under 'Links'). This standard fits into the framework of existing internationally applicable environmental and safety standards. Offsetting involves the purchase and cancellation of emission reduction certificates approved for this purpose; they provide verifiable proof of a reduction in CO2 equivalent to the emitted amount to be offset at another location.
The second market-based measure is linking the European emissions trading system with the Swiss one and integrating aviation into it. The relevant bilateral agreement and the amendments to CO2 legislation required were adopted in March 2019 by the Swiss Parliament and entered into force on 1 January 2020.
