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F.A.Q. - UK ETS

1. Would a new "annual emissions monitoring plan" be required for the first year of UK ETS or is the last approved plan for EU ETS remain valid?

An Emissions Monitoring Plan (EMP) is required to comply with the UK Emissions Trading Scheme (UK ETS). An aircraft operator does not need to apply for an EMP if they are already regulated by the UK under the EU ETS. If they are not regulated by the UK for EU ETS, they must contact their UK ETS regulator and apply for an EMP.

Please click on Read More for the official link.
 
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2. What routes would be covered by a UK ETS?

UK ETS would impose surrendering obligations on the following routes:

1. UK domestic flights
2. Flights departing from the UK to aerodromes within EEA states.
3. Flights between the UK and Gibraltar.
4. Flights departing the UK to territories of EEA member states, these would be included in the scope of UK ETS. These include Ceuta and Melilla (Spain), the Åland Islands (Finland) and Jan Mayen (Norway).
5. Also, flights to offshore installations will be included in a UK ETS.
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3. What is the proposed duration for the implementation of a UK ETS?

Only Phase 1 of the UK ETS has been announced as of now and it is slated to run from 2021 to 2030, with two full system reviews. 
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4. Would offsets be included in the UK ETS?

No, offsets are not to be included in the UK ETS from the beginning. The UK government will revisit the inclusion of offsets during the first review.
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5. What is the UK ETS’s aviation cap on emissions?

Though a firm number is not know yet, its been announced that the UK ETS’s emissions cap would be equivalent to the UK’s expected share if it was under the EU ETS. This implies that the aviation cap in UK ETS will not differ from the UK aviation’s share in the EU ETS cap.
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6. Would the UK ETS be linked with the EU ETS?

In the near future, the UK ETS may be linked with the EU ETS if both parties deem the agreement acceptable. We will update you as and when this changes. 
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7. Would ETSWAP be used for reporting as was the case under EU ETS?

ETSWAP will be used for EU ETS or a UK ETS for at least the next twelve months.
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8. What are the deadlines envisaged for compliance?

The UK ETS compliance deadlines would be aligned with EU ETS requirements.

For the table of all compliance deadlines, please click read more.
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9. What is the UK ETS’s position on the allocation of allowances?

The operators will receive free allowances on day one based on their historical activity on the routes covered under the UK ETS. The free allowances received by operators would then reduce annually by 5%, which is the same percentage by which the UK’s overall emissions cap will reduce.

Updated based on UK Government Legislation released on 17th Dec 2020.

“Under the UK Emissions Trading Scheme (UK ETS), a proportion of free allowances will be allocated to qualifying aircraft operators based on their historical aviation activity. Free allocation will be distributed in proportion with UK ETS aviation activity emissions rather than full-scope flight emissions.

The United Kingdom has mandated that all applications for a free allocation entitlement must be made by 31 March 2021

For the official application page for free allocation entitlement, please click read more.
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10. What are the associated exemptions and thresholds under the UK ETS ?

In all scenarios (linking or no linking), the thresholds for commercial and non-commercial aircraft operators would be the same as those in the current EU ETS. 
 
Commercial aircraft operators would not be subject to any obligations if they meet either of the following criteria: 

• Operate fewer than 243 flights per period for three consecutive four-month periods based on full scope activity. The four-month periods are: January to April, May to August, September to December, 

• Operate flights with total annual emissions less than 10,000 tonnes of CO2 per year based on full scope activity. 

Non-commercial aircraft operators would not be subject to any obligations if they operate flights with total annual emissions lower than 1,000 tonnes of CO2 per year based on full scope activity. 

For more information on UK ETS, contact us at corsia@verifavia.com
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11. Frequently Asked Questions about EU ETS and Swiss ETS

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