Archive · 23 Sep 2025
India Seeks Clear Carbon Offset Rules for Airline Mergers
Imagine airlines are like big cars that make pollution.
To help the planet, there's a plan called Corsia, where airlines have to pay to balance out their pollution.
But when airlines merge, like Vistara and Air India, it's tricky to figure out their pollution limits.
India is asking the people in charge of this plan, ICAO, to create clear rules for merged airlines.
They want to avoid confusion, so everyone follows the same rules and no airline gets an unfair advantage.
This helps the plan work properly and ensures everyone does their part to protect the environment, starting in 2027.
India is requesting ICAO to establish clear guidelines for carbon offsetting following airline mergers.
The need for clarity stems from the Vistara-Air India merger.
The Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) aims to reduce emissions.
Air India was subject to Corsia compliance requirements since 2019, Vistara qualified as a new entrant.
The mandatory phase of Corsia for India starts in 2027.
- Who
- India and the International Civil Aviation Organisation (ICAO)
- What
- Seeking clarification on carbon offsetting obligations for merged airlines.
- When
- The issue arose following the Vistara-Air India merger and in a working paper published September 23, 2025.
- Where
- The issue concerns international aviation.
- Why
- To ensure consistent application of Corsia and avoid uncertainty in calculating offsetting obligations.
- Main Issue
- Lack of clarity on carbon offset rules for airline mergers
- Affected Airlines
- Vistara and Air India (post-merger)
- Scheme Name
- Carbon Offsetting and Reduction Scheme for International Aviation (Corsia)
- India's Participation
- Mandatory phase from 2027
- Merger Date
- Vistara-Air India merger completed November, 2025