F.A.Q. - Aviation EU ETS

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%.

Aviation ETS concerns all aircraft operators of all origins operating flights to, from and within the EU.

Free allowances are allocated proportionally to an airline’s share in the total payload in 2010 expressed in tonne-kilometers.

It is expected that airlines will have limited abatement options so they will have to engage into carbon trading.

Aircraft CO2 emissions are an exact multiple of fuel consumption.

Airlines have a choice between two methodologies for monitoring fuel use.

Uncertainty assessment is an integral part of the monitoring and reporting guidelines.

By 30 April 2013, aircraft operators must surrender allowances corresponding to their verified 2012 emissions.

Aviation ETS raises numerous financial, administrative, legal, commercial and technological challenges for airlines.

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.

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.

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.

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.

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.

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.

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.

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).

The ETS Prohibition Act gives the US Secretary of Transportation the authority to prohibit US aircraft operators from taking part in the scheme.

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.

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.

The European Commission and some Competent Authorities have published several useful FAQs on their web sites.

The Competent Authority of Italy requires aircraft operators to submit their AEM plan, AEM report and verification opinion statement using a Qualified Electronic Signature.

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.

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.

ICAO Assembly agreed on a roadmap to a Global MBM in 2020.

The European Commission proposes to apply EU ETS to European regional airspace from 1 January 2014.

Competent Authorities are publishing guidance addressed to aircraft operators to inform them of their reporting and surrendering requirements for the 2013 monitoring period

The new EU ETS regulation restricting EU ETS to intra-European flights for the period 2013-2016 came into force on 30 April 2014.

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.

Find below the link for the most frequently asked questions on the Swiss ETS and UK ETS.