Fit for 55: Approved, Published and Simplified

Allowances:

• Free emission allowances for the aviation sector will be gradually phased out and full auctioning from 2026 will be implemented. To ensure the gradual phase out, a decrease of 25% in free allocations is applied for 2024 and 50% for 2025 (of the 85 % which is currently allocated for free).
• 5 million allowances relating to aviation allocations for 2026 shall be made available for innovation support.
• Linear reduction factor: The total quantity of allowances for aviation should be consolidated and subject to the linear reduction factor as referred to in Article 9 of Directive 2003/87/EC. Between 2021 and 2023, the linear factor shall be 2.2 % and from 2024 it shall be 4.2% to align Fit for 55 long-term goals.
• The allocation for the year 2024 should be based on the total allocation to active aircraft operators in the year 2023, reduced by the linear reduction factor as referred to in that Directive. The level of allocation should be increased to take into account the routes that were not covered by the EU ETS in the year 2023 but will be covered by the EU ETS from the year 2024 onwards.

• The EU ETS will apply to intra-European flights only, including departing flights to the United Kingdom and Switzerland (current reduced scope), while CORSIA will apply to extra-European flights to and from third countries participating in CORSIA from 2022 to 2027 ('clean cut').
• A review of CORSIA should take place by 1 July 2026. If the ICAO Assembly by 31 December 2025 has not strengthened CORSIA in line with achieving its long-term global aspirational goal towards meeting the Paris Agreement goals or if the States listed in an implementing act to be adopted by the Commission represent less than 70 % of international aviation emissions using the most recent available data, then the Commission should propose, as appropriate, that the EU ETS applies to emissions from extra-European departing flights from 2027, and that aircraft operators be able to deduct any costs incurred from CORSIA offsetting on those routes, to avoid double charging. In parallel, if a third country does not apply CORSIA from 2027, the EU ETS should apply to emissions from flights departing to that third country.
• Special consideration should be given to promoting accessibility for the outermost regions of the Union. Therefore, a temporary derogation from the EU ETS should be provided until 31 December 2030 for emissions from flights between an aerodrome located in an outermost region of a Member State and an aerodrome located in the same Member State outside that outermost region. That derogation should, for the same reasons, cover flights between aerodromes that are both located in the same outermost region or in different outermost regions in the same Member State.

• Considering the high level of competition between aircraft operators, the developing market for sustainable aviation fuels, and the significant price differential between fossil kerosene and sustainable aviation fuels, it was agreed that during the period from 1 January 2024 until 31 December 2030, 20 million allowances are to be reserved to incentivize the transition of aircraft operators from the use of fossil fuels. These will be allocated to cover part of the remaining price differential between fossil kerosene and eligible aviation fuels for individual aircraft operators.

• Aircraft operators shall report once a year on the non-CO2 aviation effects occurring from 1 January 2025. For that purpose, the Commission shall adopt by 31 August 2024 an implementing act to include non-CO2 aviation effects in a monitoring, reporting and verification framework.
• By 31 December 2027, based on the results from the application of the monitoring, reporting and verification framework for non-CO2 aviation effects, the Commission will submit a report and will propose, where appropriate, a legislative proposal containing mitigation measures for non-CO2 aviation effects, by expanding the scope of the EU ETS to cover such effects.

Source: 

 
Conclusion: