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.
Find the official guidance and application page here. ”
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