Membership Update
EU Emissions Trading Scheme
There has been significant confusion regarding the European Union’s (EU) inclusion of aviation in the Emissions Trading Scheme (ETS) over the last six months, especially for corporate and business aircraft operators located in the United States. Most of this confusion has arisen due to the structure of the regulatory procedures in the EU. In fact, many of the EU member states have yet to finalize the regulations that implement aviation’s inclusion in the ETS. The information below is a summary of the latest available information.
ETS Summary
ETS will require covered operators to monitor their emissions beginning January 1, 2010. Covered operators will be assigned to a specific EU member state (known as the competent authority and usually the state they operate in most frequently) to administer the ETS program. Each March 31, beginning in 2011, covered operators will be required to submit a third-party-verified emissions report for the prior calendar year to their competent authority. Beginning March 31, 2012, covered operators will be required to surrender emission credits equal to their emission for the previous calendar year. Operators that have completed the optional process of benchmarking will receive a certain amount of free emissions credits but then be required to purchase any additional needed credits on the open market. Operators that did not complete benchmarking will be required to purchase all their needed emissions credits on the open market.
Eligibility for ETS
All aircraft operators that operate aircraft with a Maximum Takeoff Weight (MTOW) greater than 5,700kg (12,566lbs) to, from or between EU airports are required to participate in ETS, with the following exceptions:
- Certain flights transporting heads of state
- Military and police flights
- Search and rescue, firefighting, humanitarian aid, and EMS flights
- Flights departing and returning to the same airport, with no intermediate landings
- Flight Training
- Scientific or certain check flights
- Flights conducted by a commercial air transport operator that
- Has fewer than 243 flights, per period, for three consecutive four-month periods, or has total annual emissions less than 10,000 tons per year
- Aircraft operating from states with emissions regulations meeting the approval of the European Commission
Exemption number seven above allows certain commercial aircraft operators to be exempted from ETS completely. According to information received from the UK and Eurocontrol, these operators will not be required to submit any monitoring information to the EU. The EU’s definition of a commercial air transport operator is causing confusion over the applicability of the exemption. Operators holding a commercial air operating certificate, such as a Part 135 on-demand air charter certificate, are considered commercial operators. The operator of a specific flight will be determined using the information listed in box 7 of the flight plan (ICAO code or aircraft registration number). Therefore, the operator as determined under ETS may not be the operator as determined under U.S. regulations.
The EU has published a list of affected operators, available here, and their competent authority assignments. If your company is on this list and you are a commercial operator meeting the flight frequency requirements for exemption, NATA urges you to contact your assigned competent authority & EuroControl immediately for clarification. If your company is on the list, you are expected to participate in ETS or face significant penalties.
EuroControl & Competent Authority Contact Information
Competent Authority contact information is available here.
Emmanuel Dettwiller
Head of Customer Relations Section
EUROCONTROL – Central Route Charges Office – Unit R3
Rue de la Fusee, 96 – B1130 BRUSSELS
Tél :+32 2 729 3993 – Fax : +32 2 729 9093
emmanuel.dettwiller@eurocontrol.int
Monitoring & Benchmarking Plans
ETS will require covered operators to submit a plan for monitoring emissions for all flight to, from or between EU airports. Each competent authority may have slightly different requirements for monitoring plans, and operators should work directly with their assigned competent authority when creating these plans. The generic date for submission of the monitoring plans is August 31, 2009. The following competent authorities have already delayed the submission date of monitoring plans:
- The United Kingdom
- Monitoring plans will need to be submitted eight weeks after the UK’s ETS regulations come into force. The estimated date is late October or early November.
- Sweden
- Monitoring plans are required to be submitted by October 15, 2009
- Italy
- Monitoring plans must be submitted within 45 days of the publication of the final operator/competent authority assignments or by September 30, 2009, whichever comes first.
- Germany
- Exact submission requirements are unknown at this time, but it is expected the plans will be due in late September or early October.
All other competent authorities are still requiring that monitoring plans be submitted by August 31, 2009.
Benchmarking is the optional process of gathering ton/kilometer data. Ton/kilometer data is simply the amount of passengers/cargo (expressed in tons) over the distance flown (expressed in kilometers) for a calendar year. The ton/kilometer data will be used to determine how many free emissions credits an operator receives. While benchmarking is optional, operators that do not participate will not receive any free emissions credits before 2020 and will be required to purchase all their emission credits on the open market. The benchmarking process is similar to the monitoring process in that a benchmarking plan must be submitted to the appropriate competent authority by August 31, 2009 (The delayed dates listed above also apply to benchmarking plans).
The EU has produced sample monitoring and benchmarking plans; however, operators are reminded to check with their competent authority prior to using these plans for submission.
- Example emissions monitoring plan
- Example ton-kilometer monitoring plan
- Example emissions data flow charts
- systems.pdf
- fuel_method-A_on-board.pdf
- fuel_method-A_supplier_uplift.pdf
- fuel_method-B_ACARS.pdf
- fuel_method-B_NO_ACARS.pdf
- Example ton-kilometer data flow charts
Small Emitters
Non-commercial operators that meet the following conditions are allowed to use simplified emissions monitoring and benchmarking plans. Affected operators should check with their competent authority for the requirements of simplified monitoring and reporting.
- Small Emitter Eligibility
- Less than 243 flights, per period, for three consecutive four-month periods or have total annual emissions less than 10,000 tons per year
Conclusion
The implementation of business, corporate and charter aviation activities into ETS has been fraught with confusion and a lack of foresight on the part of EU regulators. If you fly into EU airspace, NATA recommends that you check the operator assignment list above for your company name. If your company is on the list, you are expected to participate in ETS and should contact your assigned competent authority as soon as possible.
For more information, please contact Mike France, NATA Manager, Regulatory Affairs, mfrance@nata.aero.