EC Firms Up Plans to Include Aircraft in Emissions Trading Scheme

December 21, 2007 // Published as a news service by IHS

The council's position remains close to the EC's original proposal of Dec. 20, 2006 (see IP/06/1862 and MEMO/06/506), with most of the changes being technical improvements.

However, there are also changes of a more political nature, including the following:

• The one-year introductory phase for intra-EU flights proposed by the EC has been dropped, and the scheme will now become operational in a single phase, starting in 2012.
• Emissions will be capped at 100% of the average level for the years 2004 to 2006.
• The level of auctioning has been increased to 10%, and revenue from the auctioned allowances should be used to combat climate change.
• An exemption has been introduced for operators with very low traffic levels on routes to, from or within the EU. Under this mechanism, many operators from developing countries with only limited air traffic links with the EU will be exempt. This will not have a significant effect on the emissions covered by the scheme.
• A special reserve of free allowances for new entrants or very fast-growing airlines has been added. While this was not contained in the original EC proposal, it was found to be acceptable, as the reserve is taken from within the overall cap and does not, therefore, affect the environmental effect of the scheme.
• A new mechanism to ensure consistent and robust enforcement throughout the EU has been introduced. As a last resort, member states could ask for an operator to be banned from operating in the EU if it persistently has failed to comply with the scheme and other enforcement measures have proven ineffective.

Stavros Dimas, EC environment commissioner, said, "Having just returned from Bali, environment ministers were acutely aware of the challenge ahead and the necessity to act. Today's political agreement on including aircraft in the emissions trading scheme sends an important signal about the EU's determination to put in place concrete measures to combat climate change."

The agreement reached will now formally be adopted as a "common position" some time in 2008. It will then be sent to the European Parliament for a second reading.

For more information, see the EU's web site for the Emission Trading Scheme and for Aviation and climate change, which contains the EC's original proposal.

Source: European Commission.