European Union Emissions Trading Scheme (ETS)

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Updated February 18, 2010

NBAA Monitoring Legal Challenge to EU ETS

The United Kingdom English High Court recently referred a legal challenge to the European Union Emissions Trading Scheme (EU ETS) to the European Court of Justice (ECJ). This lawsuit, brought forth by the Air Transport Association and its member airlines, challenges the EU directive that extends the existing emissions trading scheme to airlines and operators from around the world engaged in international aviation activities to or from EU countries. The ECJ has the authority to rule on the Europe-wide directive that applies the EU ETS to flights to, from or within EU countries. NBAA will continue to monitor these legal proceedings and will provide updates as developments occur. View the Air Transport Association News Release

European Emissions Trading Scheme Now Includes Norway, Iceland, and Liechtenstein

The European Union Emissions Trading Scheme (EU-ETS) has been expanded to include the countries Norway, Iceland and Liechtenstein. Operators conducting flights to or from aeronautical facilities in these countries or European Union countries and territories already included in the EU-ETS are required to monitor and report their aviation emissions for those flights as part of their compliance with the EU-ETS.

View the European Commission Notice Announcing Inclusion of Iceland, Norway and Liechtenstein in EU-ETS (15 KB, PDF)

UK, Germany, Sweden and Italy Allow More Time for Operators to Submit ETS Plans

Environmental authorities in the UK, Germany, Sweden and Italy have announced that they are providing more time for operators to submit their required annual emissions monitoring plan and optional emissions benchmarking plan for compliance with the European Union Emissions Trading Scheme (ETS). Aircraft operators assigned to Sweden for ETS administration must now submit their plan(s) by October 15, 2009. Italy now requires operators to submit their plan(s) no later than September 30, 2009. Germany and the UK have not set a specific date, but Germany’s will be in early October 2009 and the UK in early November 2009. Those operators required to comply with the EU ETS assigned to other EU countries should plan to submit their annual emissions monitoring plan and optional emissions benchmarking plan by the original deadline of August 31, 2009.

What's Involved in the EU's Emissions Trading Scheme and What it Means For NBAA Members

As is widely known in the business aviation community, general aviation aircraft account for 0.6 percent of U.S. transportation carbon emissions and 0.2 percent of total global greenhouse gas emissions. The industry's continually improving record is thanks to an ongoing focus on the development of engines, aircraft and operating procedures that reduce emissions.

While the industry's record of continuing progress on carbon emissions is laudable, policymakers in the U.S. and around the world continue to closely examine aviation emissions as part of an overall review of all carbon emissions from transportation. This ongoing scrutiny has been prompted and sustained by repeated calls for limitations or reductions in carbon emissions.

Since its formation, the European Union (EU) has been considering options for an environmental program applicable to aviation. EU policymakers have settled on and are moving toward implantation of a plan for aviation known as the Emissions Trading Scheme (ETS). The ETS would incorporate all flights by eligible aircraft arriving at or departing from EU airports in the EU ETS. Operator of fixed or rotary-wing aircraft over 5,700 kg (12,566 pounds) who fly to, from or within EU countries (or their territorial possessions) will be included in the EU ETS starting in 2012 (with compliance requirements that must be met prior to the 2012 date). There is an exemption for commerical aircraft operations which have fewer than 243 flights per period for three consecutive four-month periods or commercial aircraft flights with total annual emissions lower than 10,000 metric tons per year.

NBAA believes that environmental stewardship is an imperative, but also that reasonable and balanced policies should be pursued that support the industry’s twin goals of promoting the mobility and growth of business aviation while minimizing its environmental footprint. The Association has worked diligently with the European Business Aviation Association (EBAA), the International Business Aviation Council (IBAC) and European regulators to help shape the rules to make them as workable as possible for business aviation, and the modifications European regulators have made to their original ETS proposal reflect the advocacy efforts from the industry.

While NBAA, EBAA, IBAC and others in the industry will continue to advocate for business aviation on ETS and other emissions policies, the expectation is that the EU's ETS program could apply to all NBAA Members conducting flights into Europe by 2012 unless the ETS is superseded by U.S. regulation (the new Administration and Congress have begun consideration of a U.S. program that may apply to aviation operations, and could impact the application of the EU's ETS on flights by U.S.-based NBAA Members into the EU). Should the European community find such a law a suitable alternative to the EU ETS for U.S. operators, those operators might not need to comply with the EU ETS. However, until that declaration has been made, operators should expect to comply with the EU requirements.

The information enclosed here is provided to keep NBAA Members updated on the EU's ETS plan and its impact on international operations. NBAA will continue to update this page, and will keep the Membership informed of ongoing developments.