Update: UK ETS & Swiss ETS now include flights between the UK and Switzerland & free allowances under UK ETS
About the MOU
On 18 November 2022 at the COP27 in Sharm-el-Shekh, the United Kingdom and Switzerland signed a memorandum of understanding (MOU) on the inclusion of flights between the countries in their Emissions Trading Schemes (ETS).
The key points of the MOU are:
- The intention of the UK to include flights from the UK to Switzerland in the UK ETS as comprehensively as possible by 1 January 2023.
- The mutual intention of the Participants to exchange information relating to the inclusion of flights between the UK and Switzerland in the respective ETS.
- The mutual intention of each Participant to inform the other Participant on developments relating to the inclusion of flights between the UK and Switzerland in respective ETS but understanding that the arrangement does not preclude any wider policy development
- The mutual intention to discuss potential areas of future co-operation as appropriate.
In summary, from 1 January 2023:
- The scope of UK ETS is expanded to include flights (other than excluded flights) departing from the UK and arriving in Switzerland.
- The scope of Swiss ETS is expanded to include flights (other than excluded flights) departing from Switzerland and arriving in the UK.
Applying for UK ETS Aviation Free Allocation Entitlement
As a result, an operator that has historical aviation activity including UK-Switzerland flights may apply for a UK ETS Aviation Free Allocation Entitlement (AFAE) using verified tonne-kilometre data (verified TKM data) from 2010 and/or 2014.
To qualify for an AFAE arising from UK-Switzerland flights, an operator must have 2010 and/or 2014 verified TKM data that includes UK-Switzerland flights.
The AFAE is calculated by multiplying the total verified TKM data from UK-Switzerland flights by the EU ETS phase 3 benchmark (0.000642186914222035). If this results in a figure ≤0.5, an operator will not qualify for an AFAE.
Download the UK ETS Aviation Newsletter Issue 9 (January 2023) on the Aviation Free Allocation Entitlement (AFAE) to reflect expansion of UK ETS Scope
> Visit our webpage on the UK ETS
> Visit the Environment Agency webpage on the UK ETS
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