29-abr-2013 The 'stop-the-clock' Decision is now in force
18-mar-2013 Anger and confusion as many aircraft operators fail to understand 'stop the clock' or open vital registry accounts [GreenAir Online]
03-ene-2013 What’s Next For ETS? [AIN Online]
30-nov-2012 Commission requests swift decision on EU ETS suspension proposal as Obama passes prohibition bill [GreenAir Online]
17-abr-2013 Hedegaard sets out conditions on ICAO agreement as EU legislators approve EU ETS 'stop the clock' measure [GreenAir Online]
18-mar-2013 Anger and confusion as many aircraft operators fail to understand 'stop the clock' or open vital registry accounts [GreenAir Online]
22-ene-2013 Study finds airlines stand to make up to $1.7 billion in windfall gains from EU emissions scheme in 2012 [GreenAir Online]
[29-abr-2013] The 'stop-the-clock' Decision was passed at European Parliament on 16 April 2013 and was published on 24 April 2013 in the Official Journal of the European Union. Consequently, it is now in force and aircraft operators that received free allowances for extra-European flights and that opted for the 'stop-the-clock' derogation have 30 days from the date of publication to return these free allowances.
Since 25 May is a Saturday, the deadline for the return of aviation allowances is 27 May 2013. You should have received a letter which includes the number of aviation allowances to return and the account number for the return. For example, the account number in the UK is EU-100-5018684-0-26 and the account number in France is EU-100-5019310-0-97.
If you have not received the letter, please contact your Competent Authority or your National Registry Administrator as soon as possible.
» Stop-the-clock Decision of 24 April 2013
» Step-by-step process to return the free allowances for all operators (European Commission)
» Procedure to return the free allowances for operators reporting to France (French CDC)
» Q&A from the European Commission
» GreenAir Online article to learn more
Please make sure not to confuse the concepts of surrender and return:
- Surrender means the surrendering of the carbon allowances (EUAs, EUAAs, CERs or ERUs) corresponding to your 2012 verified emissions (deadline is 30 April 2013) [all aircraft operators with 2012 emissions greater than 0 are concerned]
- Return means the returning of the free allowances (aviation allowances - EUAAs - only) that might have been allocated in 2012 on the basis of the 2010 TK data in relation to extra-European flights (deadline is 27 May 2013) [only aircraft operators that received free allowances for extra-European flights and that opted for the 'stop-the-clock' derogation are concerned]
Just in case you still do not have an opened registry account, or you still do not know how to purchase any missing carbon allowances, please let me know so that I can send you a list of third party suppliers that offer these services.
This is probably our last EU ETS newsletter until the next ICAO general assembly scheduled in September 2013 and the subsequent decision by the European Commission to either re-start the clock, stop the clock again, or start a different clock!
[14-ene-2013] The European Commission (EC) published on its web site an updated FAQ on the 'stop the clock' proposal to suspend extra-European flights from the EU ETS for a period of one year.
The geographical scope of the intra-European Annex 1 flights that must be reported under the 'stop the clock' proposal has been clarified. Intra-European flights include the following flights:
- International and domestic flights within the EEA area (27 EU member states + Norway + Iceland + Liechtenstein + EEA Overseas Territories)
- International flights between the EEA area and Croatia/Switzerland/European microstates (Andorra, Monaco, San Marino, Vatican)
- International flights between the EEA area and the EEA Dependencies
For a complete list of the EEA Overseas Territories and EEA Dependencies, please check our FAQ.
» Download updated FAQ from the EC (252 KB)
» Download legislative proposal from the EC (54 KB)
» Download newsletter from UK Environment Agency (205 KB)
» Download report from European parliament (375 KB)
» Download perimeter of stop the clock (source: DGAC) (483 KB)
[11-dic-2012] The European Commission (EC) published today a complete set of Frequently Asked Questions about its proposal to defer EU ETS international aviation compliance by one year.
The document confirms the information we provided to you recently in our own FAQ.
In short, the EC confirms that 'extra-European flights' (flights between EEA States and third countries, except Switzerland and Croatia) are now outside the scope of EU ETS.
The condition is that aircraft operators must return the allocated free allowances that correspond to the reported 2010 tonne-kilometre data in relation to extra-European flights. The formula to calculate the number of free allowances to return will be as follows:
Allowances to return = 2010 TK for extra-European flights * Benchmark 2012 = 2010 TK for extra-European flights * 0.0006797
This is a business decision as it might be financially beneficial for some operators to continue to report extra-European flights, especially considering the possibility to surrender up to 15% of required allowances using cheap CERs and ERUs.
Section 4 of the FAQ explains in details how the free allowances will have to be returned.
Nevertheless, while proper monitoring, reporting and verification of emissions is obligatory for intra-European flights, aircraft operators are welcome to also report emissions for extra-European flights.
Most importantly, the EC confirms that pending completion of the legislative process, aircraft operators which have either not received, or have returned for cancellation the relevant share of their free allowances for 2012, should not expect the EC to require enforcement activities to be taken against them by Member States in respect of reporting emissions or surrendering allowances for extra-European flights.
In conclusion, aircraft operators are advised to take the decision whether to report all Annex 1 flights or intra-European flights only, then start preparing their 2012 annual emissions report as soon as the last 2012 flight has been operated, and finally get ready for verification.
[09-dic-2012] On 27 November 2012, President Obama signed the ETS Prohibition Act into law giving the US Secretary of Transportation the authority to prohibit US aircraft operators from taking part in the scheme. The objective of this special newsletter is to clarify some misunderstandings about the impact of the ETS Prohibition Act on US operators subject to the EU ETS regulations.
Paragraph 2 a) and b) of the ETS Prohibition Act states that US operators are prohibited from participating in the EU ETS if the Secretary of Transportation determines the EU ETS to be against the (US) public interest. Since the Secretary of Transportation has not yet taken any action, there is currently no conflict between European and US law, and the Act does not automatically prohibit US operators from complying with the EU ETS.
Now that the European Commission (EC) has proposed to suspend intercontinental flights from the EU ETS for a period of one year, we believe it is highly unlikely that the Secretary of Transportation will ban US operators from participating in the scheme at least until the outcome of the ICAO Assembly taking place in September/October 2013 and the subsequent decision by the EC to either lift or extend the suspension.
Consequently, US operators are still required to comply with the EU ETS regulation in its current and proposed modified form, which means, at least, reporting 2012 emissions for intra-EEA flights and flights between EEA and Switzerland / Croatia by 31 March 2013.
We also remind you that the condition for not reporting intercontinental flights is to either have not received or to have returned the free allowances allocated in 2012 that correspond to the reported 2010 tonne-kilometre data in relation to intercontinental flights. This would be a business decision as it might be financially beneficial for some operators to continue to report intercontinental flights.
We recommend that all operators contact their Competent Authority directly for clarification and guidance on these issues.
We also recommend all operators to attend the Aviation Carbon 2013 conference to learn more about the impact of the ETS Prohibition Act and the 'stop the clock' proposal, among many other EU ETS related issues.
[03-dic-2012] Article 1 of the legislative proposal says that the suspension concerns: '[...] activity to or from aerodromes in countries outside the European Union that are not members of EFTA, dependencies and territories of EEA Member States or countries having signed a Treaty of Accession with the Union [...]'
Since Switzerland is a member of EFTA, this means that flights between Switzerland and EEA Member States would still need to be reported and allowances surrendered.
Similarly, since Croatia has signed a Treaty of Accession with the EU, flights between Croatia and EEA Member States would still need to be reported and allowances surrendered.
In conclusion, in the Q&A below, 'intra-EEA' must be replaced by 'intra-EU/EFTA' (excluding domestic Switzerland, and including flights between Croatia and EEA).
- EU includes 27 Member States
- EEA includes all 27 EU Member States + Iceland, Liechtenstein and Norway
- EFTA includes Iceland, Liechtenstein, Norway and Switzerland
- EU ETS includes all EEA Member States
In conclusion, the suspension proposal concerns flights between EEA (including overseas territories) and third countries except Switzerland and Croatia.
[02-dic-2012] The EUROCONTROL ETS Support Facility for Aircraft Operators - 2012 flight data - is now open. The 2012 report is available for download with flight information up to October 2012 included. The data is updated monthly to provide operators with the latest information available at each download of the report.
Also, the new version of the Small Emitter Tool (SET) to be used for reporting emissions of 2012 flights is now available, free of charge online for small emitters and for any operator with data gaps.
» Go to EUROCONTROL ETS Support Facility
» Go to EUROCONTROL Small Emitters Tool
» Download Small Emitters Tool (version 4.105 dated 2012.11.15, to be used for flights operated in 2012, superseding version 2012.01.22)
» Download EUROCONTROL brochure (547 KB)
[22-nov-2012] The European Commission (EC) proposed on Monday 12 November that all intercontinental flights should be suspended from the EU ETS for a period of one year. This initiative followed the discussions that took place two weeks ago at ICAO on a global market-based mechanism (MBM) to regulate greenhouse gas emissions from international aviation. On Tuesday 20 November, the EC presented its legislative proposal.
The aim of this special newsletter is to give you an update of the situation and an overview of how this legislative proposal from the EC might affect your EU ETS compliance activities.
The information below has been collected from official information provided by the EC and through informal discussions with the EC and Competent Authorities (CA) and its accuracy cannot be guaranteed. We recommend aircraft operators contact their CA directly for the exact requirements they must follow. Also, until the legislative proposal has been approved by the EU States and passed at the European Parliament, part of these rules might change and VerifAvia cannot be held responsible for any incorrect information provided.
The EC proposed that intercontinental flights (i.e. flights between the European Economic Area (EEA) and third countries) should be excluded from the EU ETS for a period of one year, i.e. until after the completion of the next ICAO Assembly in October 2013. This is conditional on ICAO reaching an agreement on a global carbon reduction scheme. If not, the suspension would be lifted.
This possibly means that aircraft operators operating exclusively intercontinental flights (i.e. no intra-EEA flights) would be exempt from surrendering EU ETS allowances for at least a period of one year. Aircraft operators operating both intra-EEA and intercontinental flights would have to surrender allowances for intra-EEA flights, but possibly not for intercontinental flights. In short, this proposal might not have any impact on aircraft operators operating exclusively intra-EEA flights.
Operators operating only intercontinental flights would not need to surrender allowances corresponding to the 2012 emissions by 30 April 2013. These operators could still submit a verified 2012 annual emissions report by 31 March 2013 but non-compliance penalties would not be enforced. The condition for this is that they return the allowances that may have been allocated to them in relation to intercontinental flights.
However, these operators would still need to keep monitoring their flights and emissions as per their approved monitoring plan and the EU ETS regulations in 2013, in case intercontinental flights are integrated back into the EU ETS in November 2013.
Operators operating intra-EEA flights only would continue to monitor and report their emissions. A verified 2012 annual emissions report would be required by 31 March 2013, and allowances corresponding to the 2012 emissions would have to be surrendered by 30 April 2013. The proposal would not have any effect.
Non-commercial operators operating both intercontinental and intra-EEA flights would have to report intra-EEA flights only, the reporting of the intercontinental flights becoming optional as penalties for non-compliance would not be enforced. The condition for this is that they return the allowances that may have been allocated to them in relation to intercontinental flights.
As long as a non-commercial operator operates at least one intra-EEA flight during the 2012 monitoring period, it would have to submit a verified 2012 annual emissions report by 31 March 2013, and surrender allowances by 30 April 2013.
Intercontinental flights would still be taken into account when calculating the number of flights per four-month period and the amount of annual emissions to determine whether a commercial operator is above or below the de minimis threshold. This means that commercial operators from outside of the EU which operate occasional unscheduled intra-EEA flights (e.g. technical stops) or triangular commercial flights that include an intra-EEA sector would still need to monitor and report these flights if they are above the de minimis threshold.
In general, commercial operators above the de minimis threshold would have to monitor and report intra-EEA flights, and surrender allowances for intra-EEA flights only, if they return the allowances that may have been allocated to them in relation to intercontinental flights. These operators could still add their international flights to their verified 2012 annual emissions report but non-compliance penalties would not be enforced if they do not do so.
Operators performing intercontinental flights must return the allocated free allowances that correspond to the reported 2010 tonne-kilometre data in relation to intercontinental flights if they choose not to surrender allowances corresponding to their 2012 emissions.
Operators who choose not to return the free allowances would have the obligation to surrender allowances for all flights (intra-EEA and intercontinental flights) by 30 April 2013 because they would be deemed to have chosen to participate in the EU ETS.
Monitoring, Reporting and Verification (MRV) would still be required for intercontinental flights but the non-compliance penalties would not be enforced. The condition for this is that operators return the allowances that may have been allocated to them in relation to intercontinental flights.
It is possible that some CAs will decide to keep requiring the MRV for intercontinental flights, although the surrendering of allowances could be waived. Aircraft operators are advised to contact their CA for clarification.
MRV would still be a mandatory requirement for intra-EEA flights, except for commercial operators below the de minimisthreshold. However, some CAs might require a verification to confirm the de minimis status.
If there is not an international agreement to design and implement a global system to tackle aircraft emissions at the next ICAO Assembly scheduled in September/October 2013 to the satisfaction of the EU, intercontinental flights will automatically be put back to the EU ETS by law for the entire 2013 period. Aircraft operators would then be required to submit a 2013 annual emissions report that includes both intra-EEA and intercontinental flights, and surrender allowances by 30 April 2014. In case of an acceptable agreement by ICAO, the suspension of intercontinental flights might be extended. Intra-EEA flights would continue to be subject to the EU ETS.
The legislative proposal was published on 20 November 2012. At this stage, this is only a proposal from the EC and the legislative process might take several months to be completed. CAs might show some difference in the interpretation of some aspects of the legislative proposal. In any case, operators are strongly advised to contact their CA for clarification.
Until the new rules come into force, the old rules continue to apply. Operators are strongly advised to keep monitoring their 2012 emissions on all Annex 1 flights until further clarification is received from their CA.
» Download this FAQ (77 KB)
[20-nov-2012] The European Commission today presented its legislative proposal to defer by one year the requirement for airlines to surrender emission allowances for flights into and out of Europe. This means that the EU would not require allowances to be surrendered in April 2013 for emissions from flights operated during the whole of 2012. Flights between European airports will continue to be fully covered by the legislation.
» Q&A (21 KB)
» COM(2012) 697: Commission proposal (provisional text) (54 KB)
» Press Release (67 KB)
[13-nov-2012] The US House approved a Senate version (S. 1956) of a bipartisan bill that aims to prevent US aircraft operators from complying with the EU legislation. The bill, which authorises the Secretary of Transportation to prohibit compliance if deemed in the public interest, was one of the first to be considered after the elections recess and now goes to the President for signature. An amendment by the Senate calls for pursuance through international negotiations of a worldwide approach to address aircraft emissions.
» GreenAir Online article: Despite EU concession, US Congress passes bill aiming to halt US airline compliance with EU carbon scheme
» S. 1956 - the European Union Emissions Trading Scheme Prohibition Act of 2011 (pdf)
» US House Transportation and Infrastructure Committee – Mica/Petri statement on S. 1956
» Airlines for America statement
» Aerospace Industries Association statement
» Environmental Defense Fund statement
» WWF-US statement
[12-nov-2012] The European Commission today proposed that the European Union defer the requirement for airlines to surrender emission allowances for flights into and out of Europe until after the 2013 International Civil Aviation Organization (ICAO) General Assembly next autumn. This initiative follows the discussions that took place last week in the ICAO Council on a global market-based approach to regulating greenhouse gas emissions from aviation.
» European Commission web site
» Commissioner Hedegaard's statement (video)
» MEMO/12/854: Stopping the clock of ETS and aviation emissions following last week's International Civil Aviation Organisation (ICAO) Council
[19-oct-2012] Following the tremendous success of Aviation Carbon 2012, which attracted over 300 delegates from 62 countries including representatives from 110 airlines and business jet operators, the date for Aviation Carbon 2013 is now set for February 19-20.
Aviation Carbon 2012 was the first time the aviation industry had met with the carbon sector in a major forum to discuss and learn about carbon trading.
Just ten weeks ahead of the April 30 compliance deadline for operators to surrender allowances to meet their EU ETS obligations, Aviation Carbon 2013 is timed perfectly to allow aircraft operators to be brought up to speed on the EU ETS international impasse and at the same time receive practical advice and up-to-date information on administrative issues and trading in the carbon markets.
As the EU ETS reaches a critical stage, 2013 will also likely prove to be a landmark year as efforts towards a global carbon scheme gather pace at ICAO. Aviation Carbon 2013 will inform delegates on progress and what a scheme might look like.
Aviation Carbon 2013 will consist of panel sessions and side events that bring together recognised experts on the following topics:
» Download Press Release (289 KB)
[07-ago-2012] What is the legal background?
The requirement to update your AEM plan arises from the new regulation on the monitoring and reporting of greenhouse gas emissions (called 'MRR', 'Monitoring and Reporting Regulation') which was passed on 21 June 2012 and entered into force on 1 August 2012.
How does the new AEM plan look like?
The European Commission (EC) published a new Excel version of the AEM plan template which is very similar to the current version. Most of the fields of the new AEM plan template are the same but new requirements have been added, especially regarding procedures for data management and control activities.
Can I re-use the information from the current version?
Yes. In the UK, the new version has been pre-populated with information from the current version. In Germany, it is possible to import the existing AEM plan as a XML-file into the latest FMS and to adjust it to the new requirements.
Where the Excel version is used (i.e. France, Spain, Italy, etc.), you can simply copy-paste the information from the existing AEM plan into the new template.
How can I get guidance and examples?
The UK Environment Agency published examples of completed AEM plans for both small and big emitters. Even if you do not report to the UK, you can use these examples to help you complete your AEM plan. The DEHSt also published an example of a completed AEM plan.
The EC published a guidance document to help operators understand the requirements and complete the new AEM plan template (see section 6). The examples and the guidance document are available for download below.
As a small emitter, am I required to submit a risk assessment?
No. Although the new AEM plan requires small emitters to submit a risk assessment, Article 54(3) of the MRR exempts small emitters from submitting a risk assessment when submitting the AEM plan for approval. Consequently, small emitters may choose to leave this procedure blank in the AEM plan template.
What is the deadline for the submission of the updated AEM plan?
UK: 5 September
France: 31 August
Germany: 6 November
Portugal: 14 September
Sweden: 30 August
Other Member States: please contact your Competent Authority
Please read carefully the email that was sent to you by your Competent Authority. You will find below available for download the explanatory emails that were sent by the UK, French and Germany authorities as reminders.
When will the new AEM plan become valid?
The current AEM plan based on the older template version is and will remain valid for 2012 emissions. Consequently, your 2012 emissions report will have to be based on the current AEM plan. The new AEM plan template will only concern emissions of the 2013-2020 period and will be used for the first time for the monitoring of the 2013 emissions.
Any particular recommendations?
Operators are strongly recommended to take advantage of this requirement to update their procedures so that they are consistent with current practice and existing business processes.
Also, this is an opportunity to incorporate the recommendations for improvement that may have been listed in your verification opinion statement by your verifier (see the 'improvement report' in the UK).
Does the updated AEM plan need to be verified?
No, the updated AEM plan does NOT need to be verified. It has to be submitted to the Competent Authority for approval. It is better to send any question you may have about this new requirement directly to the Competent Authority.
» Download example of completed AEM plan (DEHSt) (539 KB)
» Download email sent by the DEHSt (97 KB)
» Download email sent by the DGAC (127 KB)
» Download email sent by Spanish CA (198 KB)
» Download email sent by the UK Environment Agency (160 KB)
» Download EU ETS newsletter from UK Environment Agency (154 KB)
» Download UK Environment Agency newsletter (106 KB)
» Download this FAQ (91 KB)
» Download guidance document (612 KB)
» Download example of completed AEM plan (big emitter) (674 KB)
» Download new MRR regulation (541 KB)
» Download example of completed AEM plan (small emitter) (574 KB)
» Download new AEM plan template (392 KB)
[21-jun-2012] Today the European Commission (EC) adopted two new regulations on monitoring and reporting of greenhouse gas emissions (M&R regulation) and on verification and accreditation of verifiers under the EU ETS (A&V regulation). These two regulations will apply from 1 January 2013, i.e. for the 2013 data to be reported by 31 March 2014.
For aircraft operators, the main change is the increase of the threshold to be considered as a small emitter. Non-commercial and commercial operators emitting between 10,000 and 25,000 tCO2 a year will be eligible to use the simplified procedure to monitor fuel consumption.
Other changes are summarized in the section 11 of the document available for download below called 'What is new from 2013?'.
Aircraft operators will have to prepare and submit by 30 September 2012 a new monitoring plan for the 2013-2020 monitoring period that complies with the new M&R regulation.
[20-jun-2012] The Swiss Federal Office for Civil Aviation (FOCA) and the EU are currently conducting negotiations on possible linking of their local ETS to the EU ETS. If an agreement is reached the linking will take place in 2014.
Currently, the Swiss ETS constitutes a voluntary alternative to a domestic fuel tax. It covers energy related CO2 emissions by around 400 companies since 1 January 2008. Switzerland has expressed an interest in linking its stationary ETS with the EU ETS.
However, the EU will only accept that if Switzerland also includes aviation. It is worth mentioning that there are a number of unresolved institutional questions which affect all bilateral agreements between Switzerland and the EU, including sensitive areas such as migration, taxation and energy issues.
Below the relevant documents pertaining to this issue are available for download. The FOCA issued an Ordinance which requires aircraft operators with flights departing from or arriving at airports in Switzerland to submit their verified TK report for year 2013 by 31 March 2014. Aircraft operators are also expected to submit their monitoring plan to the FOCA for approval no later than 30 September 2012.
The acquisition of TK data will start on January 2013 provided that the negotiations with the EU on the ETS can be concluded. If not, the Federal Council will postpone the collection of TK data.
A consultation on the Ordinance is underway and will terminate on 30 June 2012.
September 2012 update: The Swiss government has made a U-turn on its decision introduce an aviation ETS by January 2013. The Swiss scheme was largely based on the EU ETS and would at some point have been linked to the European system. The Swiss have decided to 'wait and see' how the EU ETS performs and what progress is made by ICAO on a global aviation emissions reduction scheme within the next 12 months.
» Press release from European Commission (68 KB)
» Consultation document (English) (61 KB)
» Ordinance 2012 (English) (49 KB)
» Letter (English) (616 KB)
» Linking of Swiss ETS with Aviation EU ETS - FAQ (258 KB)
» Letter (French) (122 KB)
» Ordinance 2012 (French) (44 KB)
» Consultation (French) (62 KB)
[20-jun-2012] Today the European Commission (EC) has activated the single EU registry for all users, including aircraft operators. National administrators and helpdesks continue to be the contact point and provide support to account holders. Aircraft operators are now able to transfer allowances and international credits to other participants in the EU ETS.
Next steps for aircraft operators will be to enter verified emissions in the registry by 31 March of 2013 and to surrender by 30 April 2013 a sufficient number of aviation allowances, general allowances and/or international credits to cover their emissions from 2012.