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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
FREE_ALLOWANCESAirlineX = (TKAirlineX / TKTotal) × 85% × 97% × Baseline

Where:
 
  • TKAirlineX is the total number of tonne-kilometers produced by Airline X in 2010 on all flights covered by the ETS.
  • TKTotal is the total number of tonne-kilometers produced by all airlines in 2010 on all flights covered by the ETS.
  • 85% and 97% are respectively the proportion of free allowances and the 2012 cap.
  • Baseline is the average 2004-2006 emissions as calculated by the EC (around 210-220 million tonnes).
TKAirlineX = ∑ (Payload × Distance)
TKAirlineX = ∑ (Nb of pax × Weight + Freight) × Distance

Where:
  • Nb of pax is the total number of passengers excluding crew.
  • Weight is the weight of the passenger and his baggage according to the mass and balance documentation or a standard 100 kg / pax.
  • Freight is the actual weight of freight and mail carried.
  • Distance is the Global Circle Distance (GCD) between the two airports + 95 km.
TKTotal = ∑ TKAirlineX
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