Market Mechanisms
EU ETS
The European Emissions Trading System (EU-ETS), applicable to the aviation sector since 2012, (Directive 2008/101/EC) is currently in force in what is known as Phase III, which covers the period 2013-2020 a.i.
The European Emissions Trading System is a scheme by which the European Union establishes a gap or “ceiling” of emissions from the aviation sector with respect to the reference period from 2004-2006. Specifically for the period 2013-2020 (Phase III), this ceiling was set at 95 % of the emissions in the reference period (2004-2006).
A percentage of these benchmark emissions are distributed free of charge by the European Union in the form of carbon credits (1 tn CO2 = 1 carbon credit) among air operators subject to EU-ETS obligations in proportion to their activity in 2010.
On an annual basis, any air operator attached to Spain must submit to the competent authority (Ministry of Public Works and Spanish Climate Change Office) an Emissions Report corresponding to the previous year, showing the emissions caused by flights subject to the EU — ETS scheme, delivering as many carbon rights as emissions.
If the reported emissions are higher than the free allocation received, the difference in the trading market is to be acquired, either from air operators with surplus allowances, or from other industries included in the EU — ETS, such as the electricity or cement industry.
The European Emissions Trading Scheme applies today (Regulation (EU) 2017/2392) and until 2023 to all domestic flights and all flights between airports in the European Economic Area, EEA; (28 EU + Iceland, Liechtenstein and Norway members), in both cases excluding flights to and from ultra-peripheral regions (Canary Islands in the case of Spain).
Reference regulations
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Union and amending Council
Directive 96/61/EC Directive 2008/101/EC of the European Parliament and of the Council of 19 November 2008 amending Directive 2003/87/EC to include aviation activities in the Community greenhouse gas emission allowance trading scheme
Regulation (EU) No 421/2014 of the European Parliament and of the Council of 16 April 2014 amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community with a view to the implementation by 2020 of an international agreement applying a single global market-based measure to international aviation emissions
Regulation (EU) No 2392/2017 of the European Parliament and of the Council of 13 December 2017 amending Directive 2003/87/EC in order to maintain the current limitations of the scope for aviation activities and to prepare for the implementation of a global market-based measure from 2021
Law 1/2005 of 9 March 2005 regulating the greenhouse gas emission allowance trading scheme
Law 13/2010 of 5 July 2010 amending Law 1/2005 of 9 March 2010 regulating the greenhouse gas emission allowance trading system, in order to improve and extend the general emissions trading system and to include aviation in it
Obligated subjects and guide for operators
The obligations arising from the EU ETS scheme apply to any air operator, regardless of nationality, operating flights between airports in the European Economic Area, unless they fall within the exclusion categories set out in Annex I to Directive 2003/87/EC.
Please find below a short guide for air operators, where you can find the inclusion and exclusion criteria in the scheme, the obligations arising therefrom, as well as the deadlines for compliance and the templates required to comply with these obligations.
Documentation useful for the EU ETS application. Templates, calendar, etc.
Any documentation submitted to this Agency within the scope of the European Emissions Trading Scheme must be submitted to the EASA General Register via the website of the State Aviation Safety Agency (General Request), accessible from the following link:
The templates required for the submission of documentation are detailed in the operator guide referred to in the previous point. In any case, they can be downloaded from the website of the European Commission, accessing the following link:
Links of interest:
