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EU Emissions Trading Scheme (EU ETS)

The EU ETS was established in 2005 with an aim to tackle climate change in the EU and help reach the Kyoto Protocol target. EU ETS is a cap and trades system which requires all Member States to set an emissions cap for sectors covered by the system.

Aviation will enter the EU ETS in 2012 and a cap will be set at 97% of average emissions between 2004 and 2006. The scheme will cover all flights arriving at or departing from an airport in the Community as of 1 January 2012. Flights between EU airports will be covered from 1 January 2011. There are a small number of exemptions.

The conditions for aviation to enter ETS are:

  • 2012 allowances will be 97% of historical aviation emissions. (The mean average of emissions from 2004- 2006)
  • From 2013 onwards (Phase III) the cap will be 95% of historical aviation emissions.
  • 15% of these allowances will be auctioned off.
  • 2010 is the year airlines begin to collect data on the level of allowances they will require.
  • EU members states have been given aircraft which they must administer.

The cost of UK carbon emissions from aviation in 2012 will be up to £900 million. This value reflects the carbon cost of UK flights, and is thus a more appropriate way of incentivising aviation to reduce its environmental impacts than artificial demand management measures.

It is proposed that aerodrome operators would have a duty to provide the regulator with ‘reasonable’ assistance and advice; this would include stowing of aircraft that have been detained. The aerodrome operator is entitled to recover any expenses incurred by assisting the regulator. If the aerodrome operator fails to provide assistance detailed in the Regulation a proposed civil penalty would be charged.

AOA and its members support EU ETS as it is the most credible and cost effective way to reduce emissions.