2020 was supposed to mark the baseline for the landmark Carbon Offsetting and Reduction Scheme for International Aviation (“CORSIA”), which gives rise to important implications for the risk profile of lenders in the aviation industry and requires steps to be considered to mitigate and manage such risks. With these waters muddied by the significant impact of COVID-19 on flight density, this article outlines the basic functions of CORSIA, identifies risk mitigation measures which lenders might take to protect their position and addresses how COVID-19 might reshape the mechanics for airlines meeting CORSIA emissions targets.
Partner London