CORSIA—A Feasible Second Best Solution?

This paper studies the feasibility of CORSIA’s carbon neutral growth goal based on verified offsetting. It is motivated by an ongoing general debate about climate and regulatory integrity offsetting, thus systematically identifying critical offset characteristics. Using registry data from largest verifiers eligible under CORSIA, we show that majority offsets have minor integrity. challenges objective. However, unconditional price differentials are only weak signals for To increase environmental effectiveness, a narrower scope eligibility rules necessary in order to ensure maximum compliance projects strengthen effect offsets. it highly questionable whether there enough potential supply such high integrity, indicating offsetting should be considered as transitory measure only.