CORSIA 2023 Update: A Promising Milestone for International Aviation Sustainability

The International Civil Aviation Organization (ICAO) recently released the CORSIA Annual Sector’s Growth Factor (SGF) for 2023. This update marks a pivotal step in reducing aviation’s carbon footprint globally. This update, included in the latest ICAO document published in October 2024, sheds light on the annual emissions reductions required from international aviation under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The 2023 SGF has been calculated as 0.0, signalling a significant achievement for the aviation sector.

At VURDHAAN, we specialize in sustainability solutions tailored for aviation, offering support for compliance with initiatives such as CORSIA, EU ETS, UK ETS, Airport Carbon Accreditation, SBTi, and Sustainable Aviation Fuels (SAFs). 

The release of this update underscores the importance of such programs in aligning aviation with global climate goals. In this blog, we’ll dive into the details of the SGF update, its implications for the industry, and how VURDHAAN is helping aviation operators navigate sustainability with confidence.

Breaking Down the 2023 SGF Calculation

The Sector’s Growth Factor (SGF) is a critical metric for determining the annual CO2 emissions that international airlines must offset. According to Annex 16, Volume IV of the ICAO’s Environmental Protection guidelines, the SGF is calculated based on the growth in emissions between the baseline year of 2019 and the reporting year—in this case, 2023.

For 2023, the SGF formula used was:

SGFy=(SEy−SEB,y)/SEy

Where:

• SEy represents total CO2 emissions for 2023 from all State pairs subject to offsetting requirements.
• SEB,y represents total 2019 CO2 emissions for the same State pairs.

As per the ICAO data:

• SEy (2023 total emissions): 330,236,931 tonnes of CO2
• SEB,y (2019 total emissions): 351,453,666 tonnes of CO2

Since emissions in 2023 were lower than those in 2019, the SGF for 2023 is 0.0. This means that for 2023, airlines do not need to offset additional CO2 emissions beyond their existing obligations under CORSIA.

What Does This Mean for International Aviation?

1. A Landmark Achievement in Emissions Reduction

The 0.0 SGF reflects a significant milestone: the aviation industry has managed to operate with lower CO2 emissions in 2023 compared to the 2019 baseline. This reduction is attributed to several factors, including:

• Increased use of Sustainable Aviation Fuels (SAFs): Airlines have increasingly adopted SAFs to replace conventional jet fuel, significantly reducing lifecycle emissions.
• Efficiency-driven operations: Airlines have optimized routes and adopted fuel-efficient aircraft to minimize emissions.
• Post-pandemic recovery adjustments: The global slowdown in air travel during the pandemic may have also contributed to reduced emissions.

2. Positive Impacts on Compliance Costs

A 0.0 SGF means that for 2023, operators will not need to purchase additional carbon offsets for their operations. This reduction in compliance costs provides breathing room for airlines to invest in long-term sustainability initiatives, such as fleet modernization and SAF development.

3. Reinforced Commitment to Global Climate Goals

This achievement aligns with the broader climate goals set by the Paris Agreement and ICAO’s aspirations for carbon-neutral growth from 2020 onwards. It underscores the aviation sector’s commitment to playing its part in mitigating climate change.

How VURDHAAN Supports Sustainability in Aviation

At VURDHAAN, we recognize the challenges and opportunities presented by sustainability initiatives like CORSIA. With expertise in regulatory compliance, voluntary certifications, and ESG optimization, we partner with aviation operators to deliver tailored solutions that align with their unique goals.

1. Helping Airlines Comply with CORSIA

Understanding and implementing CORSIA’s complex requirements can be daunting. VURDHAAN simplifies this process through:

• Technical support to calculate emissions accurately and meet reporting obligations.
• Guidance on sourcing CORSIA-eligible offsets and integrating them into operational strategies.
• Support in adopting Sustainable Aviation Fuels to minimize dependency on offsets.

2. Enhancing Carbon Reduction Strategies

Beyond compliance, VURDHAAN collaborates with operators to enhance their carbon management strategies. From route optimization to fleet electrification, we help airlines achieve measurable emissions reductions.

3. Building Organizational Capacity

To ensure long-term success, we provide tailored workshops and training programs for aviation stakeholders. These initiatives empower teams to adopt innovative practices that drive sustainability across operations.

What’s Next for the Aviation Industry?

Scaling the Use of SAFs

The role of Sustainable Aviation Fuels is pivotal to decarbonizing aviation. While the 2023 SGF indicates progress, the sector must continue to scale SAF production and adoption to meet future demands. VURDHAAN actively supports operators in evaluating SAF supply chains and integrating these fuels into their operations.

Mitigating Non-CO2 Effects

While CO2 emissions are central to CORSIA, non-CO2 effects such as contrail formation and nitrogen oxides (NOx) also contribute significantly to climate change. Addressing these impacts will require investment in R&D and innovative technologies—areas where VURDHAAN offers strategic guidance.

Preparing for Future SGF Trends

The 2023 SGF of 0.0 is a promising milestone, but the aviation industry must prepare for potential growth in emissions as air travel continues to recover post-pandemic. Future SGFs may reflect increased offsetting obligations, emphasizing the need for proactive carbon management strategies.

VURDHAAN: Your Partner in Aviation Sustainability

As the aviation sector embraces a low-carbon future, VURDHAAN remains at the forefront of this transformation. Our holistic approach—Support, Educate, Implement—ensures that airlines not only comply with regulations like CORSIA but also lead the way in sustainability innovation.

• Support: We help airlines meet their compliance obligations efficiently.
• Educate: Through tailored workshops, we equip teams with the knowledge needed to navigate complex sustainability challenges.
• Implement: Our collaborative approach turns sustainability aspirations into measurable actions, enhancing ESG performance and industry reputation.

Conclusion

The ICAO’s 2023 SGF update is a testament to the aviation industry’s resilience and commitment to sustainability. With emissions lower than the 2019 baseline, the sector is making tangible progress toward a greener future. However, this achievement is just the beginning.

At VURDHAAN, we are proud to support aviation stakeholders in driving this momentum forward. Whether it’s navigating CORSIA requirements, adopting SAFs, or optimizing operations for ESG excellence, we’re here to make sustainability achievable and impactful.

As we look ahead, collaboration will be key. By working together, the aviation industry can achieve carbon-neutral growth and secure its place as a leader in global sustainability. Reach out to VURDHAAN today and let’s embark on this journey together.

Download PDF Here:- CORSIA Annual Sector’s Growth Factor (SGF) for 2023