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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 EEA.
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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?
Operators subject to the European Union Emissions Trading System (EU ETS) are each assigned a Competent Authority (CA), to which they must report. These operators have specific obligations.
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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?
​Operators are required to have their reported emissions data and Annual Emissions Report (AER) verified by an independent third party called a verifier.
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11. What is the monitoring plan that must be submitted to the Competent Authority?
Article 11 of the Monitoring, Reporting, and Verification Regulation (MRR) requires aviation operators to create a Monitoring Plan (MP) approved by the competent authority.
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12. 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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13. ​How many free allowances are allocated to each operator?
As EU-ETS is a 'Cap and Trade' scheme The first allocations were made in the year 2012. The European Commission published the benchmark values used to allocate greenhouse gas emission allowances free of charge to more than 900 aircraft operators. 
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14. ​What is a registry account and how to open one?
The Union Registry is an online database hosted and managed by the European Commission. It operates in a similar same way to an internet bank account, and records allowance allocations for aircraft operators, annual verified emissions, transaction history of allowance transfers and surrenders of allowances.
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15. ​What is the impact of being considered as a small emitter?
The Operators emitting less than 25,000 tCO2 per year or operating fewer than 243 flights per period for three consecutive 4-month periods are considered small emitters. Most business jet operators and corporate flight operators are small emitters.
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16. 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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17. ​What is the geographical scope of the EU ETS under stop the clock?
Under the 'stop the clock' proposal from the European Commission (EC), aircraft operators have two options:
- Continue to report all Annex 1 flights (both 'extra-European' and 'intra-European' Annex 1 flights).
- Report 'intra-European' Annex 1 flights only. The condition is that aircraft operators return the allocated free allowances that correspond to the reported 2010 tonne-kilometre data in relation to 'extra-European' flights.
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18. 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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19. ​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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20. ​How to surrender carbon allowances?
Aircraft operators must surrender carbon allowances before 30 April (N+1). 
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21. ​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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22. ​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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23. ​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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24. What is the exact geographical scope of the latest EU ETS regulation?
The latest EU ETS regulation continues to restrict EU ETS to intra-European flights for the period 2013-2030 and exempts small emitters below 1,000 tCO2 for the period 2013-2030.
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25. 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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26. Frequently Asked Questions about Swiss ETS and EU ETS
Find below the link for the most frequently asked questions on the Swiss ETS and UK ETS.
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