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Below, you find further information on the technical details of EU ETS:
- Calculation of allowances for aviation
- Background on Annual Emission Allowances
- Airline Monitoring and Reporting of CO2 Emissions
- Verification of Data
- Exceptions
Calculation of allowances for aviation
Historical aviation emissions are calculated as the average of the years 2004-2006. For 2012, the total quantity that airlines will be allowed to emit is fixed at 97% of the historical emissions. This percentage will be reduced further to 95% for the trading period starting in 2013.
For 2012, 15% of the allowances are auctioned, 3% of the allowances are allocated as special reserve for new market entrants and fast growing operators, and 82% of the allowances are issued as free allowances to aircraft operators. Any amount above the free allocated figure will have to be purchased or traded by each airline.
Background on Annual Emission Allowances
Each aircraft operator will need to apply for free allowances. Allowances are issued based on tonne-kilometre data, which must be submitted as part of the application (Tonne-kilometre (TKM) = great circle distance (km) x payload (t)).
For 2012 as well as for the next trading period, the tonne-kilometre data of 2010 will be used. The Commission calculates a benchmark using TKM data of all applications (benchmark = free allowances / sum (tonne-kilometre)).
The aircraft operators will then receive free allowances as per submitted and verified tonne-kilometre data.
Airline Monitoring and Reporting of CO2 Emissions
Each aircraft operator needs to report the emissions during each calendar year from January 1, 2010 from the aircraft that it operates after the end of that year. The emissions are monitored by calculation using the formula: Fuel consumption x Emission factor. Fuel consumption is expressed as fuel consumed in mass units (tons) during the reporting period. Fuel consumed shall be monitored for each flight and for each type of fuel and shall include fuel consumed by the auxiliary power unit (APU).
Actual fuel consumption for each flight shall be used wherever possible. If actual fuel consumption is not available, a standardized method shall be used to estimate fuel consumption based on best available information.
Reports on tonne-kilometre and emissions prepared by aircraft operators must be verified according to specific criteria before submission. The verification is done by accredited verifiers.
European flights of smaller commercial aircraft operators are exempted from EU ETS:
- Less than 243 flights per period for 3 consecutive 4-month periods
- Less than 10,000 tons of annual emissions