Airlines Now Included in EU Emissions Trading System

02/16/2012

Beginning January 1, 2012 the European Union (EU) Emissions Trading System (ETS) requirements were extended to the aviation industry, meaning all domestic and international flights that arrive or depart from an EU airport will be subject to CO2 emission controls. The ETS covers most aircraft operators whether EU or foreign based.

The EU ETS was launched in 2005 and at the time covered only energy-intensive industrial installations. The program limits the total emissions of certain greenhouse gases by affected industries and provides companies with allowances which can be held, bought or sold as needed. At the end of each year a company must either surrender the allowances needed to cover their actual emissions or pay heavy fines.

According to the European Commission, "Like industrial installations, airlines will receive tradeable allowances covering a certain level of CO2 emissions from their flights per year. After each year operators must surrender a number of allowances equal to their actual emissions in that year." Aviation allowances covering 2012 emissions must be surrendered by April 30, 2013.

Objections have been raised by some non-EU countries due to the current method of emission calculations, which are based upon the entire flight, not just that portion which takes place over European airspace.


Additional information from the European Commission regarding the inclusion of the aviation industry in the ETS is available at:
http://ec.europa.eu/clima/policies/transport/aviation/index_en.htm

The IATA guide on Preparting for Emissions Trading in Europe is available at:
http://www.iata.org/whatwedo/environment/Pages/emissions-europe.aspx



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