Reconciling CORSIA and the Sustainable Development Mechanism

The document proposes replacing traditional carbon offsetting with a results-based climate finance (RBCF) system under a unified Sustainable Development Mechanism (SDM). It argues that while the aviation sector currently relies on offsets via CORSIA, this should be a transitory arrangement phased out by 2030 through a 'ratchet mechanism' on Nationally Determined Contribution (NDC) scope. To ensure environmental integrity and avoid double counting, the author recommends a 50% discount rate on offsets, mandatory corresponding adjustments by host countries, and a transparent international registry. Additionally, the SDM should incorporate stakeholder consultation rules, grievance mechanisms, and restrictions on harmful technologies like coal to foster genuine sustainable development.

• To phase out aviation's reliance on offsetting by 2030, the SDM should implement a ratchet mechanism where offsets can only be issued from sectors newly included in a country's NDC for a maximum of five years.
• To achieve overall global emission reductions, a 50% discount rate should be applied to offsets used under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), meaning 5 of every 10 credits purchased must be cancelled immediately.
• To prevent double counting, host countries must perform a corresponding adjustment by increasing their emissions account when selling an offset, and all such transfers must be authorized by the host country.
• The SDM requires a centralized, publicly accessible international registry to track the issuance, transfer, use, and cancellation of mitigation outcomes to ensure transparency and environmental integrity.
• To ensure sustainable development and avoid harm, the SDM should implement local stakeholder consultation rules, a grievance mechanism, and technology restrictions to exclude projects such as coal power plants.

APA

Dufrasne, G. (2018). Reconciling CORSIA and the Sustainable Development Mechanism. Carbon Market Watch. https://carbonmarketwatch.org/wp-content/uploads/2018/08/CMW-PB-RECONCILING-CORSIA-AND-THE-SUSTAINABLE-DEVELOPMENT-MECHANISM-FINAL-SINGLE-PAGE-WEB.pdf

Chicago

Dufrasne, Gilles. Reconciling CORSIA and the Sustainable Development Mechanism. Carbon Market Watch, 2018. https://carbonmarketwatch.org/wp-content/uploads/2018/08/CMW-PB-RECONCILING-CORSIA-AND-THE-SUSTAINABLE-DEVELOPMENT-MECHANISM-FINAL-SINGLE-PAGE-WEB.pdf.

Wikipedia

{{cite report |last1=Dufrasne |first1=Gilles |title=Reconciling CORSIA and the Sustainable Development Mechanism |publisher=Carbon Market Watch |date=August 2018 |url=https://carbonmarketwatch.org/wp-content/uploads/2018/08/CMW-PB-RECONCILING-CORSIA-AND-THE-SUSTAINABLE-DEVELOPMENT-MECHANISM-FINAL-SINGLE-PAGE-WEB.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dufrasne2018reconciling, author = {Dufrasne, Gilles}, title = {{Reconciling CORSIA and the Sustainable Development Mechanism}}, institution = {Carbon Market Watch}, year = {2018}, month = aug, url = {https://carbonmarketwatch.org/wp-content/uploads/2018/08/CMW-PB-RECONCILING-CORSIA-AND-THE-SUSTAINABLE-DEVELOPMENT-MECHANISM-FINAL-SINGLE-PAGE-WEB.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }