Vietnam has officially confirmed its participation in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) from January 1, 2026, marking a significant step in aligning the country’s aviation sector with international climate commitments. CORSIA, initiated by the International Civil Aviation Organization (ICAO), requires airlines to offset any increase in carbon emissions above 85% of 2019 levels, primarily through the purchase of carbon credits. The scheme has already been adopted by many states, covering about 60% of global international aviation emissions, though several large developing countries such as China, India, and Brazil have yet to join.
The Civil Aviation Authority of Vietnam (CAAV), under the Ministry of Construction, has undertaken preparations to ensure readiness for the scheme. These include issuing regulations on fuel consumption and CO2 emissions in civil aviation, establishing a monitoring and reporting system, and submitting emissions data for 2019 – 2024 to ICAO. CAAV has also engaged with stakeholders to evaluate impacts and draft policy measures to support implementation.
Despite the progress, officials warned that Vietnamese airlines could face considerable financial pressures. The cost of acquiring carbon credits during the voluntary phase is estimated between USD 13 million and USD 92 million, depending on fluctuating credit prices, which currently range from USD 6 to USD 40 per metric ton of CO2 equivalent. This challenge comes as carriers are still recovering from pandemic-related disruptions while competing in a highly competitive market.
The commitment reflects Vietnam’s efforts to enhance sustainability in the aviation sector, aligning with broader national goals to transition toward low-carbon growth. It also coincides with developments in sustainable aviation fuel, such as Vietnam Airlines’ first SAF-powered flight from Singapore to Hanoi in May 2024 and a pre-feasibility study by Binh Son Refining and Petrochemical in partnership with Kellogg Brown & Root to explore SAF production.
By joining CORSIA, Vietnam signals its intention to contribute to global climate objectives while supporting the country’s long-term strategy of building a greener and more resilient aviation industry.
(Source: S&P Global)
