OIES Podcast – Carbon pricing schemes for Aviation

In this podcast David Ledesma talks to Nicolas Lockhart and Katherine Connolly on the critical question of how should we tackle aviation emissions? Two different regulatory schemes – the EU’s Emission Trading System (ETS) and the International Civil Aviation Organisation (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) – are trying to provide an answer. Whereas the EU’s ETS will require operators to purchase allowances covering their total emissions on covered flights, CORSIA will require operators to purchase carbon credits to offset emissions growth.  Both are market-based mechanisms which put a price on carbon, but work in very different ways, with potentially very different impacts.  The podcast unpacks the key differences in the two schemes, how they will interact, and look around the corner to see what’s coming next in the national and international regulation of these emissions.