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European Union’s Emissions Trading System (EU ETS)
The EU Emission Trading Scheme (EU ETS) is key to reducing greenhouse gases (GHG), incorporating aviation since 2008 under its “Cap and Trade” system. This scheme limits emissions, allowing for trading of CO2 allowances. Aircraft operators face a detailed regulatory environment, managing “full” and “reduced” scopes for compliance. Our EU ETS verification service ensures precise adherence to emissions reporting and allowance surrendering, guided by rigorous standards.
- Regulatory Adherence: Ensure strict compliance with EU ETS regulations, avoiding penalties and legal consequences.
- Improve your monitoring and reporting process: Streamline and enhance your emissions monitoring and reporting process, identifying areas for improvement, and ensuring accuracy in reporting.
- Global Assurance: Rely on services backed by global accreditation, providing credibility and assurance to stakeholders and authorities within the EU ETS framework.
- Environmental Responsibility: Demonstrate commitment to environmental responsibility by participating in efforts to offset and reduce aviation emissions in alignment with EU ETS standards.
The EU ETS operates under the ETS Directive, mandating coverage for flights within the European Economic Area (EEA). This includes all member states and encompasses both full and reduced scopes of operation, distinguishing between general inclusion and specific emissions monitoring, reporting, and allowance surrendering requirements.
Evolving Cap and Linear Reduction Factor (LRF):
The aviation sector sees a yearly emissions cap decrease, determined by the LRF, set at 1.74% from 2013 to 2020, and adjusted to 2.2% starting in 2021, thereby reducing the total allowable emissions progressively.
Current Reduced Scope Includes:
- Flights within EEA member countries and their territories.
- Intra-regional flights within the EEA’s outermost areas.
- EEA to Switzerland and the United Kingdom flights.
- Flights connected to offshore installations beyond territorial waters.
De-minimis Threshold:
Exemptions apply to operators under certain thresholds, aimed at small emitters and less frequent flyers, with specific criteria for commercial and non-commercial operators. These thresholds are reassessed annually until 2030.
Simplified Procedures for Small Emitters:
Operators qualifying as small emitters benefit from simplified monitoring, reporting, and verification protocols through Eurocontrol’s tools, tailored to reduce administrative burdens based on emissions volume or flight activity.