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ICAO - CORSIA

By 2020, global international aviation emissions are projected to be around 70% higher than in 2005 and the International Civil Aviation Organization (ICAO) forecasts that by 2050 they could grow by a further 300-700%. The projections clearly demonstrate that action at the ICAO level is needed in order to ensure that the international aviation contributes to the mitigation efforts necessary to reach the temperature goal of the Paris Agreement.

ETS aviationIn October 2016, the ICAO agreed on a global market-based measure to address CO2 emissions from international aviation as of 2021: the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The objective of CORSIA is to stabilise CO2 emissions at 2020 levels by requiring airlines to offset the growth of their emissions after 2020.

Airlines will be required to monitor emissions on all international routes and to offset emissions from routes included in the scheme by purchasing eligible credits generated by projects that reduce emissions in other sectors (e.g. renewable energy).

The participation in the first phase will be voluntary. According to ICAO as of 11 January 2018, 73 States, representing 87.7% of international aviation activity, intend to voluntarily participate in the global MBM scheme from the start. All EU Member State will participate in the first voluntary phase.

More information on CORSIA in different languages is available on the ICAO website.

At the European Level, once there is more clarity about the implementation of the CORSIA by ICAO, the Commission will present a further assessment and review of the EU ETS. More information can be found here.

 

The EU ETS 


The European Emission Trading Scheme (EU ETS) was launched in 2005 by the directive 2003/87/EC. The EU ETS works as a cap and trade system by setting a price on GHG emissions. The EU ETS is an instrument implemented in the 28 Member States of the EU and in 3 EEA-EFTA countries (Iceland, Liechtenstein and Norway). For a general overview of EU ETS, please consult this document developed by the European Commission.

 

Scope of the EU ETS for aircraft operators included


The directive ETS

Since 2012 the emission from all flights, to and within European Economic Area (EEA) - the 28 EU Member States, plus Iceland, Liechtenstein and Norway - are included in the EU Emissions Trading System. This legislation is applicable to all airlines whatever they are European or non European. However since the beginning the Annex I of ETS directive specifically excludes the activities mentioned here:

  1. flights performed exclusively for the transport, on official mission, of a reigning Monarch and his immediate family, Heads of State, Heads of Government and Government Ministers, of a country other than a Member State, where this is substantiated by an appropriate status indicator in the flight plan;
  2. military flights performed by military aircraft and customs and police flights;
  3. flights related to search and rescue, fire-fighting flights, humanitarian flights and emergency medical service flights authorised by the appropriate competent authority; 
  4. any flights performed exclusively under visual flight rules as defined in Annex 2 to the Chicago Convention;
  5. flights terminating at the aerodrome from which the aircraft has taken off and during which no intermediate landing has been made;
  6. AVtraining flights performed exclusively for the purpose of obtaining a licence, or a rating in the case of cockpit flight crew where this is substantiated by an appropriate remark in the flight plan provided that the flight does not serve for the transport of passengers and/or cargo or for the positioning or ferrying of the aircraft;
  7. flights performed exclusively for the purpose of scientific research or for the purpose of checking, testing or certifying aircraft or equipment whether airborne or ground-based;
  8. flights performed by aircraft with a certified maximum take-off mass of less than 5700 kg;
  9. flights performed in the framework of public service obligations imposed in accordance with Regulation (EEC) No 2408/92 on routes within outermost regions, as specified in Article 299(2) of the Treaty, or on routes where the capacity offered does not exceed 30000 seats per year; and
  10. flights which, but for this point, would fall within this activity, performed by a commercial air transport operator operating either: fewer than 243 flights per period for three consecutive four-month periods, or flights with total annual emissions lower than 10000 tonnes per year. Flights performed exclusively for the transport, on official mission, of a reigning Monarch and his immediate family, Heads of State, Heads of Government and Government Ministers, of a Member State may not be excluded under this point."

For more interpretation guidance on the annex, see the Commission’s decision (2009/450/EC) 

The objective of the EU ETS for fixed installations (-21% in 2020 compared to 2005) does not apply to aviation, rather since January 2013, the total quantity of allowances to be allocated to aircraft operators is equivalent to 95 % of the historical aviation emissions multiplied by the number of years in the period.


Amendments

Originally the legislation was intended to apply to all flights from, to and within the European Economic Area (EEA). Following the progress in the negotiations at International Civil Aviation Organization (ICAO) on a global market based measure for aviation and the adoption of a Resolution by the 2016 ICAO Assembly on the Carbon Offsetting and Reduction Scheme for International Aviation  (CORSIA), the EU ETS requirements were amended three times :

  • First, through the stop the clock decision which exempted for the year 2012 flights to and from non European countries.
  • Second, through the 421/2014 regulation. For the years 2013 to 2016 the EU ETS covers only emission from flights within the EEA. From 1 January 2013 to 31 December 2016, all emissions from flights between an aerodrome located in an outermost region within the meaning of Article 349 of the Treaty on the Functioning of the European Union (TFEU) and an aerodrome located in another region of the EEA in each calendar year are also excluded;
  • Third, through the Regulation 2017/2392 . This regulation amends the EU ETS Directive and maintains the current approach of a scope limited to flights within the EEA beyond 2016 until 2023. Once  there  is  more  clarity  about  the  nature  and content of the legal instruments adopted by ICAO for the implementation of the CORSIA, the Commission  intends  to  present  a  further  assessment  and  review  of  the  EU  ETS  to  the Council and the European Parliament. In the  absence  of an  amendment the  EU  ETS would  revert  to  its full  scope from  1  January 2024.

These exemptions were also accompanied by other provisions for low emitters:

            • Until 2030, flights performed by non-commercial aircraft operators with total annual emissions lower than 1 000 tonnes CO2 per year shall not be included in the activity that falls under the EU ETS directive.
            • By way of derogation from Articles 3g, 12, 15 and 18a, where an aircraft operator has total annual emissions (full scope) lower than 25 000 tonnes CO2 or where an aircraft operator has total annual emissions lower than 3 000 tonnes of CO2 from flights other than those referred to in points (a) and (b) of paragraph 1 of article 28a (extra EEA flights and flights to outermost regions), its emissions shall be considered to be verified emissions if determined by using the small emitters tool approved under Commission Regulation (EU) No 606/2010 (*) and populated by Eurocontrol with data from its ETS support facility. Member States may implement simplified procedures for non-commercial aircraft operators as long as such procedures provide no less accuracy than the small emitters tool provides. “

More information can be found here.

What are the consequences of being included in the EU ETS?


In order to facilitate the administration of the EU ETS, each year in February, the European Commission publishes an updated list containing aircraft operators and their respective administering Member state. To avoid double regulation, this list is based on two principles:

      • In the case of an aircraft operator with a valid operating licence granted by a Member State in accordance with the provisions of Council Regulation (EEC) No 2407/92 of 23 July 1992 on licensing of air carriers, the Member State which granted the operating licence in respect of that aircraft operator shall be the administering member state;
      • In all other cases, the Member State with the greatest estimated attributed aviation emissions from flights performed by that aircraft operator in the base year shall be the administering member state.

This list is a facilitative instrument and may contain inaccuracies. Therefore it is important to know that:

      • Even an aircraft operator appearing on the list is not included under the EU ETS if it performs only activities exempted according to Annex I to directive 2003/87/EC.
      • An aircraft operator not appearing on the list but performing activities under Annex I to directive 2003/87/EC falls under the EU ETS. 

The Commission also publishes a “prior compliance list” which provides information on aircraft operators (and most likely administering Member states) not yet included in the scheme but that might fall soon under.

Belgium has 2 competent authorities: the Walloon Region and the Flemish Region. Following a cooperation agreement, only one of these will be administering your company based on two criteria the number of aviation activities (landings and take-offs in an airport in their territory) and in case of equality the biggest C02 emissions coming from the aviation activities.

If you think you fall under the authority of the Walloon Region, please contact us.

All aircraft operators covered by the EU ETS are required to have an approved monitoring plan for annual emissions by 1st January 2010. However, aircraft operators shall not be required to submit monitoring plans setting out measures to monitor and report emissions in respect of flights which are subject to the derogations (extra EEA flights and flights to the outermost region see article 28a of the ETS directive)..

Each aircraft operator shall submit to the Walloon Air and Climate Agency an Annual Emissions Report (AEM report) by 2nd Thursday of March of the year following the emissions year. This AEM report must be submitted through the web-based application ETSWAP.

In the EU ETS 82% of the allowances are granted for free to aircraft operators, 15% are auctioned and the remaining 3% is held in a special reserve for new entrants or growing aircraft operator. If the aircraft operator wants to access free allowances, an approved ton-kilometre plan is required. The last amendment had no impact on free allocation. In general aircraft operators would receive the same number of allowances as they did in 2016 for every year between 2017 and 2030. In the absence of a revision the number of free allowances will be reduced every year from 2021 in line with the linear reduction factor applicable to all other sectors in the EU ETS.

By the 30th April of each year, an aircraft operator must surrender allowances or credits equivalent to its emissions. The aircraft operator can use either: allowances (EUAs or AEUAs) or credits up to a defined percentage (CERs or ERUs).


Having an account in the European Registry is necessary to surrender allowances. It also allows the aircraft operator to sell or buy allowances to or from other operators, or to participate in the auctions set up by EEA Member States. To open an account with the Belgian National administrator, please visit this webpage: http://www.climateregistry.be/

The ETSWAP is the Walloon web based application used by the AWAC for monitoring and reporting obligations. To open account, please contact us.

As a new entrant, formalities may differ according to the fact that you have an EU operator licence or not. For more information see the FAQ of the European commission on “historic aviation emissions and the inclusion of aviation in the EU's Emission Trading System (EU ETS)”, questions 44 & 45.

 

Contact



Walloon Air and Climate Agency

The Walloon Air and Climate Agency (AWAC) is one of the competent authorities in Belgium. You can either use the generic email address (ets.awac@spw.wallonie.be) or contact directly François Verpoorten who is in charge of aviation in the ETS team. Just below is the post address of the Agency:

Agence wallonne de l'Air et du Climat,
Avenue Prince de Liège n° 7 Bte 2,
B-5100 JAMBES – BELGIUM


Belgian National Greenhouse Gas Registry

All information can be found on this website.

Accredited Verifiers

More information on accredited verifiers is available in this document.

Legislation


To get an overview of the legislation:

      • At the European level click here (section 2. “système d’échange de quotas d’émissions”) or visit the Commission website.
      • At the Walloon level, click here (section 2. “système d’échange de quotas d’émissions”).
      • At the Flemish level, click here
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