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Why has the Emissions Trading System been expanded to include aviation operators?

A study undertaken on behalf of the European Commission demonstrated that whilst the EU’s total greenhouse gas emissions fell by 5.3 per cent from 1990 to 2003, carbon dioxide emissions from international aviation activities of the 25 member states increased by 73 per cent during the same period.

The study concluded that without due policy intervention, the growth in emissions is expected to continue in the coming decades.

Following consultation on the Commission’s proposals, a Directive to include aviation within the Emissions Trading System (ETS) was published on the 13 January 2009.

What will the new Directive mean for operators?

The Directive sets out a number of requirements on all member states, which must be transposed into national legislation by 2 February 2010. The Directive and the UK Regulations will require aviation operators to monitor their CO2 emissions according to approved guidelines.

Starting in 2012, operators will be required to surrender one allowance for each tonne of CO2 they emit during the reporting year.

At the end of the year if an operator does not have enough allowances to cover their annual CO2 emissions it will need to buy more.

Failure to surrender enough allowances for each tonne of CO2 emitted will result in a civil penalty for the operator.

More background information on the scheme can be found on the Commission’s Aviation web page: