Analysis of Carbon Emission Reduction in International Civil Aviation through the Lens of Shared Triple Bottom Line Value Creation

Abstract

Overall, climate concerns have been on the global agenda for many years now. However, the aviation sector’s impact on climate change has been receiving increased attention recently. This is primarily due to the adoption of the 2016 carbon offsetting and reduction scheme for international civil aviation (CORSIA) which was introduced by the international civil aviation organization (ICAO). The aims of our study are to analyze ICAO’s carbon offsetting reduction scheme through the lens of the triple bottom line (TBL) value creation dimensions and to explore implementation issues relevant to its success and alignment between regulatory and commercial capabilities. Findings from our analysis were presented to a pilot focus group to further our understanding of the area. After cross-examination of the carbon emission reduction implementation issues against the TBL dimensions, we show the gap between regulatory schemes and the realities of the sustainable commercial aviation sector to meet climate goals. By highlighting the regulatory versus commercial social capabilities, our study illuminates the dimensions which need to be considered in regulatory practice, emphasizing the necessity for commercial sustainability. We finally provide recommendations to be considered for the successful implementation of CORSIA.