Aviation and the EU Emissions Trading Scheme

Directive 2008/101/EC of the European Parliament and of the Council was published on 13 January 2009. Directive 2008/101/EC amends Directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community. In a nutshell: aviation was included in the EU Emissions Trading Scheme (EU ETS).

The aim of the emissions trading scheme is to reduce emissions in a cost effective way. It allows airlines to trade emission allowances and determine how and where they reduce emissions. Each allowance unit represents one tonne of carbon dioxide gas emissions.

The emissions trading scheme will be applied to all flights departing from and arriving at EU airports, unless they are excluded from the scope of the ETS for special reasons. The first emissions trading period starts on 1 January 2012. During year 2012, the total amount of emissions allowances granted to aircraft operators will be 97 percent of the average emissions during years 2004-2006. The amount of allowances will be reduced for the second emissions trading period starting in 2013, so that the total amount will be 95 percent of the average emissions during years 2004-2006 for each emissions trading year.

Three percent of the emissions allowances will be granted from a special reserve to new aircraft operators and to aircraft operators whose traffic has grown significantly. Of the remaining emissions allowances, 85 percent will be granted free of charge to aircraft operators on the basis of an EU-level comparison. The free emissions allowances are distributed on the basis of tonne kilometres flown by the aircraft. The remaining 15 percent of aviation emissions allowances will be auctioned.

Each year no later than 30 April, aircraft operators are required to surrender emissions allowances equivalent to their emissions during the previous calendar year. Annual emissions must also be reported to the competent authority. ETS operators who emit more than the emissions allowances they have received can buy allowances from other participating aircraft operators or from operators of stationary installations that also fall within the scope of the EU ETS. Purchasing allowances will ensure that sufficient allowances are surrendered by 30 April each year. If the operator emits less than the emissions allowances granted, it can sell the surplus of emissions.

Legislation, guidance and templates

Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community (consolidated)

Commission Decision of 16 April 2009 as regards the inclusion of monitoring and reporting guidelines for emissions and tonne-kilometre data from aviation activities (consolidated text)

Commission Regulation 82/2010/EU of 28 January 2010 amending Regulation 748/2009/EC on the list of aircraft operators which performed an aviation activity listed in Annex I to Directive 2003/87/EC on or after 1 January 2006 specifying the administering Member State for each aircraft operator

2009/450/EC: Commission Decision of 8 June 2009 on the detailed interpretation of the aviation activities listed in Annex I to Directive 2003/87/EC of the European Parliament and of the Council

Finnish legislation on aviation ETS

Act on Aviation Emissions Trading (34/2010)
http://www.finlex.fi/fi/laki/kaannokset/2010/en20100034.pdf (in English)

The following Decrees are only available in Finnish and Swedish for the time being:

Decree of the Ministry of Transport and Communications on the monitoring, reporting and verification of carbon dioxide emissions and tonne kilometres in the field of aviation (63/2010)
http://www.finlex.fi/fi/laki/alkup/2010/20100063
http://www.finlex.fi/sv/laki/alkup/2010/20100063

Decree of the Ministry of Transport and Communications on Free Allocation of Aviation Emissions Allowances (64/2010)
http://www.finlex.fi/fi/laki/alkup/2010/20100064
http://www.finlex.fi/sv/laki/alkup/2010/20100064

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Aviation and the EU Emissions Trading Scheme

Legislation, guidance and templates

Verification

Registries

Templates

Finnish legislation on aviation ETS