Vietnam Airlines needs to spend at least 5.6 million USD to buy carbon credits

The Civil Aviation Authority of Vietnam has just agreed and plans to participate in the voluntary carbon reduction and offset plan for international flights (Corsia) from January 1, 2026.

According to the Civil Aviation Authority of Vietnam, the International Civil Aviation Organization (ICAO) has issued a plan to reduce and offset carbon in international flights, aiming to contribute to achieving net zero emissions by 2050 in the civil aviation sector.

In recent years, the Ministry of Transport and the Civil Aviation Authority of Vietnam have actively implemented the tasks and requirements according to Corsia, while monitoring - reporting - verifying carbon emissions on international flights, reporting to ICAO emission data for the years 2019, 2020, 2021, 2022, 2023.

ICAO has divided the implementation of carbon offsets according to Corsia into two phases: voluntary participation from 2021-2026 and mandatory participation from 2027-2035.

According to preliminary calculations, the cost of purchasing carbon credits to offset emissions when participating in the voluntary phase from January 1, 2024 to the end of 2026 will be at least more than 13 million USD (with a credit price of 6 USD) and at most more than 92 million USD (with a credit price of 40 USD).

If participating in the voluntary phase from January 1, 2025, in 2025, Vietnam Airlines will spend from at least 4.6 million USD to as much as 31 million USD on purchasing carbon credits. In 2026, the corresponding figures will be 5.6 million USD and 37.5 million USD.

The Civil Aviation Authority of Vietnam assessed that Vietnamese airlines would face many difficulties and huge financial challenges if they joined the voluntary phase of Corsia even just 1 year earlier. Currently, the Civil Aviation Authority of Vietnam has agreed and plans to join the voluntary phase of Corsia from January 1, 2026.

Joining Corsia is equivalent to Vietnam joining an international agreement. Therefore, the Civil Aviation Authority of Vietnam believes that in the coming time, the aviation industry will need the joint efforts, consensus, and support of relevant ministries, sectors, agencies, and units inside and outside the industry.

MINH ANH

Source: https://www.sggp.org.vn/hang-khong-viet-nam-can-chi-it-nhat-56-trieu-usd-mua-tin-chi-carbon-post763197.html