How to buy allowances?
It is expected that airlines will have limited abatement options so they will have to engage into carbon trading.
- Through trading from other airlines (AA)
- Through purchasing from stationary installations in ETS sectors (EUA)
- Through the participation in Kyoto protocol mechanisms (ERU and CER)
There are four types of allowances
| AA | Aviation Allowances, available through auctioning (*) or by purchasing from other airlines | Maximum 15% of emission cap for 2012, tradable only between airlines |
|---|---|---|
| EUA | EU Allowances, available on the European carbon market from other ETS sectors | For all allowances needed above the emission cap after AA have been auctioned |
| ERU | Emission Reduction Units, available from Joint Implementation (JI) projects | Use or CER and ERU is capped at 15% of an airline's total allowances in 2012, and 1.5% in 2013-2020 |
| CER | Certified Emission Reductions, available from Clean Development Mechanisms (CDM) projects |
* Every EU member state will hold an AA auction in 2012. There are no limitations as to who can participate or how many AAs can be bought in any of the 27 auctions.
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