Provisional deal reached between European Parliament and Council of the EU on extending current aviation rules int the EU emissions trading system

On 18 October, the Estonian Presidency reached a provisional agreement with European Parliament representatives on a regulation to extend existing provisions covering  aviation activities in the EU emissions trading system (ETS) regulation beyond 2016 and to prepare for the implementation of the global market-basedmeasure as of 2021. The provisional text will be submitted to the EU ambassadors for political endorsement, according to a press release of the Council of the EU.

FOTO: Reprezentanța Permanentă a României la UE

This new regulation is the follow up to the decision reached in October 2016 by the International Civil Aviation Organisation (ICAO) to introduce a global market-based measure from 2021 in order to regulate international aviation emissions through an offsetting system, also referred to as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation). The EU supports this measure and aims to join the ‘pilot’ phase of the scheme in 2021 on a voluntary basis.

The main elements of the provisional agreement are as follows:

– maintain current limitations within the scope of the EU ETS, particularly by prolonging the derogation for non-intra European Economic Area (EEA) flights until 31 December 2023, when the ‘first’ phase of CORSIA will begin;

-establish provisions for a review once all ICAO decisions have been taken on the implementation of the global market-based measure within the EU, particularly concerning how to incorporate this measure into the ETS directive;

-subject to this review, foresee the application of the Linear Reduction Factor, as set out in the ETS directive, to the aviation sector from 2021 onwards.

-The emissions trading scheme (ETS) was launched in 2005 to promote the reduction of greenhouse gas emissions at EU level. The aviation sector is part of the existing ETS regulation. Emissions from aviation also form part of the EU’s goal of cutting greenhouse gas emissions by 20% by 2020 compared to 1990 levels

In 2014, the EU decided to reduce the scope of the ETS scheme to apply only to intra-EEA flights, in order to facilitate progress in the negotiations within the ICAO, and in the hope of achieving clarity regarding emissions from international flights connecting the EEA and third countries. It was then decided that the derogation for non-intra EEA flights would apply only until the end of 2016.

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