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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%.


The first trading period is the year 2012, and the second the 2013-2020 period.
85% of the emissions cap is given to airlines free of charge based on reported payload for 2010.

15% of the emissions cap is available through auctioning while additional allowances to cover growth have to be purchased from other sectors (open trading).



* 2004-2006 average emissions are around 220 million tonnes of CO2.
** Allocated from 2017, a special reserve of 3% of the 2013-2020 cap is allocated free of charge to new entrants and fast-growing operators.


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