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F.A.Q. - Aviation EU ETS

1. How does Aviation ETS work?
In 2012, the EU-wide cap on aviation emissions is set at 97% of the average annual emissions for the years 2004-2006. In 2013-2020, the cap is lowered to 95%.
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2. Which airlines / flights are concerned?
Aviation ETS concerns all aircraft operators of all origins operating flights to, from and within the EU.
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3. How are the free allowances allocated?
Free allowances are allocated proportionally to an airline’s share in the total payload in 2010 expressed in tonne-kilometers.
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4. How to buy allowances?
It is expected that airlines will have limited abatement options so they will have to engage into carbon trading.
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5. How are aircraft CO2 emissions calculated?
Aircraft CO2 emissions are an exact multiple of fuel consumption.
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6. How should the fuel consumed be evaluated?
Airlines have a choice between two methodologies for monitoring fuel use.
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7. ​What is the uncertainty assessment?
Uncertainty assessment is an integral part of the monitoring and reporting guidelines.
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8. ​How to comply with ETS?
By 30 April 2013, aircraft operators must surrender allowances corresponding to their verified 2012 emissions.
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9. What are the stakes of Aviation ETS?
Aviation ETS raises numerous financial, administrative, legal, commercial and technological challenges for airlines.
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10. What is the verification process?
The annual emissions and tonne-kilometer reports must be verified by an accredited verifier before they can be submitted to the Competent Authority of the operator's administering Member State.
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11. ​What is the 'improvement report' required by the United Kingdom Environment Agency?
Operators that had any nonconformities, misstatements or recommended improvements in their verified 2012 annual emissions report must address these issues in an improvement report to be submitted by 30 June 2013.
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12. ​What is the Phase 3 AEM plan that must be submitted to the Competent Authority?
The requirement to submit a new AEM plan arises from the new regulation on the monitoring and reporting of greenhouse gas emissions applicable from January 2013.
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13. What is the impact on the 'stop the clock' proposal from European Commission?
The legislative proposal presented by the EC on 20 November has a significant impact on the EU ETS administrative process and on the number of allowances to be surrendered.
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14. ​How many free allowances are allocated to each operator?
On 26 September 2011, the European Commission published the benchmark values which would be used to allocate greenhouse gas emission allowances free of charge to more than 900 aircraft operators.
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15. ​What is a registry account and how to open one?
Aircraft operators need to open a registry account to be able to receive the free allowances in February of each year, and also to be able to comply with the EU ETS by 30 April of each year.
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16. ​When will Croatia join the EU ETS?
By 1 January 2014, the aviation part of the EU ETS should expand to Croatia due to the country's planned accession to the EU on 1 July 2013.
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17. ​What is the impact of being considered as a small emitter?
Small emitters can use either the normal procedure to monitor fuel consumption (method A or B) or the simplified procedure (the small emitters tool or the ETS Support Facility from Eurocontrol).
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18. What is the impact of the ETS Prohibition Act?
The ETS Prohibition Act gives the US Secretary of Transportation the authority to prohibit US aircraft operators from taking part in the scheme.
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19. ​When will the Swiss ETS be linked with the EU ETS?
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.
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20. ​What is the geographical scope of the EU ETS under stop the clock?
The EC introduced the concept of 'intra-European' flights and 'extra-European flights'. Under the 'stop the clock' proposal and under certain conditions, aircraft operators can choose to report intra-European flights only.
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21. Where to find other FAQs?
The European Commission and some Competent Authorities have published several useful FAQs on their web sites.
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22. ​What is the Qualified Electronic Signature required by the Competent Authority?
The Competent Authority of Italy requires aircraft operators to submit their AEM plan, AEM report and verification opinion statement using a Qualified Electronic Signature.
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23. ​How to surrender carbon allowances and return the free allowances under 'stop-the-clock'?
Aircraft operators must surrender carbon allowances before 30 April 2013. Operators that received free allowances for extra-European flights and that opted for the 'stop-the-clock' derogation have until 27 May 2013 to return these free allowances.
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24. ​How to apply for free allowances from the Special Reserve?
For the 2013-2020 period, a Special Reserve of free allowances is set aside for new entrants and fast-growing operators. Eligible operators must submit a tkm monitoring plan and monitor their tkm in 2014.
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25. ​What was agreed at the ICAO 38th Assembly?
ICAO Assembly agreed on a roadmap to a Global MBM in 2020.
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26. ​Everything about the European Commission's proposal for the future of the EU ETS
The European Commission proposes to apply EU ETS to European regional airspace from 1 January 2014.
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27. ​Competent Authority's guidance on the Commission's proposal
Competent Authorities are publishing guidance addressed to aircraft operators to inform them of their reporting and surrendering requirements for the 2013 monitoring period
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28. What is the exact geographical scope of the new EU ETS regulation?
The new EU ETS regulation restricting EU ETS to intra-European flights for the period 2013-2016 came into force on 30 April 2014.
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29. What are the revised free allocations for aviation for the period 2013-2016
Due to the revised geographical scope of EU ETS after the entry into force of Regulation (EU) N° 421/2014, the number of free aviation allocations that will be attributed to each aircraft operator during the period 2013-2016 has been revised.
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