Aviation
Extension of the EU ETS for aviation to EEA EFTA States (Iceland, Liechtenstein and Norway)
The EEA EFTA States (Iceland, Liechtenstein and Norway) have been part of the EU ETS since October 2007, when the EU ETS Directive (2003/87/EC) was incorporated into the EEA Agreement.
With the Aviation Directive (2008/101/EC) aviation activities were included in the EU ETS from 1 January 2012. The EU and the EEA EFTA States consider the Aviation Directive EEA relevant and will therefore incorporate it into the EEA Agreement. It will consequently become legally binding for the EEA EFTA States.
EEA additional flights
The extension of the scheme entails that in addition to the 27 EU Member States the EEA EFTA States will henceforward also be covered by the EU ETS. As a result, flights which depart from or arrive in an aerodrome situated in the territory of an EEA EFTA State, collectively called ‘EEA additional flights’, will be subject to EU ETS rules. EEA additional flights are:
- Domestic flights within the EEA EFTA States
- Flights between the EEA EFTA States
- Flights between the EEA EFTA States and third countries outside the EEA
The list of exemptions from the scope of the EU ETS in Annex I of the Aviation Directive also applies for the EEA additional flights.
Aircraft operators
Aircraft operators which are already covered by the EU ETS will only be affected by the extension of the system if they perform EEA additional flighs, cf. above. These operators will from now on have to include their EEA additional flights into their monitoring and reporting activities. They will thus have to start monitoring annual emissions and tonne-kilometre data related to EEA additional flights from 1 January 2010.
These operators have assumably already submitted their monitoring plans. Due to the extension of the EU ETS, they now have to update their monitoring plans to cover their EEA additional flights. Operators which update their monitoring plans shall notify their competent authority without delay of any changes made. In case of substantial changes to the monitoring methodology, the operators need to submit their plans anew for approval. Substantial changes include:
- Change of the average reported annual emissions which causes the operator to exceed the threshold for applying tier 1 for determination of fuel consumption
- Change in the number of flights or in the total annual emissions which cause the aircraft operator to exceed the threshold for small emitters, so that the operator is no longer eligible for simplified monitoring procedures
- Substantial changes to the type of fuels used
Aircraft operators which are not covered by the EU ETS yet but perform EEA additional flights will be covered by the scope of the scheme as a result of the extension to the EEA EFTA States. These operators have to submit monitoring plans for annual emissions and tonne-kilometre data as soon as possible. The monitoring plans shall be submitted to a competent authority in the state which will become the administering state of the relevant operator, i.e. the EEA EFTA State which granted the operating licence. The operators will have to start monitoring annual emissions and tonne-kilometre data from 1 January 2010.
If a commercial aircraft operator is exempted from the scope on grounds of point (j) of Annex I, i.e. because it operates either fewer than 243 flights per period for three consecutive four-month periods or flights with total annual emissions lower than 10 000 tonnes per year (de minimis rule), the exemption could cease to apply if EEA additional flights cause the aircraft operator to exceed the aforementioned limits. In such case, the aircraft operator has to submit monitoring plans as soon as possible to a competent authority in the administering state, i.e. the state that granted the operating licence or, in case of operator from a third-country, the state with the greatest estimated attributed aviation emissions from flights performed by that aircraft operator in the base year. The aircraft operator shall start monitoring annual emissions and tonne-kilometre data from 1 January 2010.
All references to Member States on the monitoring plans and reporting templates provided by the European Commission should be interpreted as including all 30 EEA States.
Before 1st February each year the Commission will update the list of aircraft operators, to include the new entrants that started performing aviation activities in the previous year. The latest list of aircraft operators can be found at the European commission’s webpage.
Information for aircraft operators
Further information can be found on the Commission´s website.
Moreover, inquiries can be sent to the Environment Agency of Iceland (ets-aviation@ust.is).
Emission reporting is an important part of the ETS. It is important that reporting is thorough and standardized, in particular to help achieve the Emissions Trading Directive’s intention of a trading scheme that is fair and effective throughout the EU. The reports have to be verified by an independent accredited verifier
Rules for monitoring and reporting
The Environment Agency of Iceland´s own templates, based on the European Commission’s are now available to operators from this website below.- Tonne-kilometre monitoring plan
- Annual emissions monitoring plan
- Tonne-kilometre report
- Annual emissions report
Small Emitters
According to Decision 2009/339/EC “aircraft operators operating fewer than 243 flights per period for three consecutive four-month periods and aircraft operators operating flights with total annual emissions lower than 10 000 tonnes CO2 per year shall be considered small emitters.
The small emitters tool can be found here.
Aviation Guidance
The Dutch Emissions Authority, in cooperation with the Environment Agency of the United Kingdom, has produced a practical interpretation of the Commission’s Monitoring and Reporting Guidelines, to assist operators in completing their monitoring plans. The document can be used by operators as a guide to complete monitoring and reporting plans subject to submission to the Environment Agency of Iceland.
Whilst this guidance can be read as a stand alone document, it is not legally binding and you should make sure you have a good understanding of the relevant legal documents:
In addition, the Environment Agency of the United Kingdom has produced completed examples of emissions monitoring plans for small and large aviation operators. These give an indication of our expected responses against each section of the plan. Please note that the documents are provided for illustration purposes only and do not represent the Commission’s approved monitoring templates:
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Example emissions monitoring plan (large commercial operator)
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Emissions monitoring plan (small emitter)
31 December 2009 - Aircraft operators (AO) turned in tonn-km plans to the Environment Agency of Iceland (EIA).
20 April 2011 - The Commission adopted the EEA-wide list of aircraft operators specifying the administering State. More information.
15 June 2011 - Last day for aircraft operators administered by Iceland to turn in reports for year 2010.
30 June 2011 - Environment Agency of Iceland turned in tonne-km reports (applications) to the Commission.
20 July 2011 - The EEA-wide historical aviation emissions were established in an EEA Joint Committee Decision 93/2011. The EEA-Wide cap for aviation is now set to 221 420 279 tonnes of CO2. The figure represents the average of the annual emissions for the years 2004, 2005 and 2006 of all activities covered by the scope of the legislation.
26 September 2011 - Commission adopted a decision on the EEA-wide benchmark values which will be used to allocate greenhouse gas emission allowances to aircraft operators free of charge. One benchmark has been calculated for the trading period in 2012 an another for the trading period starting in January 2013. In 2013 to 2020 an airline will receive 0,6422 allowances per 1,000 t-km, while in 2012 it will receive 0,6797 allowances. More information.
30 November 2011 - Last day to turn in tonne-km monitoring plan for aircraft operators that intend to perform Croatian domestic and Croatia-non EEA aviation activities that could apply for free allowances. More information.
30 December 2011 - EIA will publish the allocation for each operator.
1 January 2012 - Start of the third monitoring period for annual emissions.
28 February 2012 - EIA will issue allowances for 2012 to those operators that successfully applied.
31 March 2013 - Final date for receipt of the 2012 Annual Emissions report.
30 April 2013 - Final data for surrender of allowances against reportable emissions.
The European Commission and Eurocontrol have published some informative and insightful frequently asked questions.
The European Commission’s FAQs can be found here.
Eurocontrol’s FAq’s can be found here.
21.12.2011 Allocation of emission allowances to aircraft operators
From January 1st 2012 aviation activities in the European Economic Area (EEA) will be included in the EU Emission Trading System (EU ETS). From that date, the ETS will cover flights which depart from or arrive in an aerodrome situated in the EEA, i.e. in any of the 27 EU Member States and in Iceland, Norway and Liechtenstein. Aircraft operators falling under the scope of the ETS will then have to acquire emission allowances equivalent to their annual CO2 emissions.
According to Act no. 65/2007 on the emission of greenhouse gases, with later amendments, The Environment Agency of Iceland (EAI) allocates allowances free of charge to aircraft operators which are covered by the system and administered by Iceland. The allocation is based on benchmarks set out in a regulation by the Minister for the Environment. The regulation is in accordance with the decision of the EEA Joint Committee on benchmarks for aviation activities in the European Economic Area.
On December 9th the Minister for the Environment adopted Regulation no. 1131/2011 on free allocation of emission allowances to aircraft operators, which implements EEA Joint Committee Decision from October 21st 2011. The regulation lays down one benchmark for the trading period in 2012 and another for the trading period 2013-2020. In 2012 aircraft operators will receive 0.6797 allowances per 1,000 tonne-kilometres, while in 2013 to 2020 aircraft operators will receive 0.6422 allowances per 1,000 tonne-kilometres each year.
Nine aircraft operators, two of which are Icelandic, applied for free allowances to the EAI. By applying the benchmark values to the 2010 verified activity data (tonne-kilometre data) submitted by the operators, the EAI has calculated the allocation of allowances that the aircraft operators will receive in each year in the two trading periods, 2012 and 2013-2020.
Allocations are in whole tonnes of CO2
By February 28 2012 and by February 28 of each subsequent year, EAI will issue to each aircraft operator the number of allowances allocated to that aircraft operator for that year.
For further information, please visit the EAI website, , and the website of the EU Commission.
18.10.2011 Publication on benchmark values for aviation
Aviation will become a part of the EU’s emission trading system (EU ETS) as of 1. January 2012. Accordingly, the Commission has published the benchmark values for the aviation industry. The benchmark values will be used to allocate greenhouse gas emission allowances free of charge to more than 900 aircraft operators.
With the benchmark values aircraft operators now have certainty regarding how many allowances they will receive for free annually until 2020.
One benchmark has been calculated for the trading period in 2012 and another for the trading period starting in January 2013. The benchmark values are as follows:
In 2012 an airline will receive 0.6797 allowances per 1,000 tonne-kilometres
In 2013 to 2020 an airline will receive 0.6422 allowances per 1,000 tonne-kilometres
The Environment Agency of Iceland will calculate and publish the number of free allowances allocated to each aircraft operator before the end of 2011. All calculations will be based on the above mentioned benchmark values.
18.10.2011 ETS expanded to include Croatia
As of 1 of July 2013, Croatia is expected to become an EU Member State and consequently a member of the EU ETS from 1 January 2014. Aircraft operators, performing domestic flights within Croatia and /or flights between Croatia and non-EEA country in 2012 ("additional aviation activities") have a possibility to monitor their tonne-km data for these flights and to apply for additional free allowances by 31st March 2013.In order to be able to apply for an allocation, a new monitoring and reporting plan for tonne-kilometres relating solely to Croatia must be submitted to the Croatian authority for approval. Note that a completed and verified tonne-kilometre report must be submitted to the:
Croatian Ministry of Environmental Protection
Physical Planning and Construction
Zagreb Ulica Republike Austrije 20
CROATIA
Or by e-mail to Ms Madlena Ozanic (madlena.ozanic@mzopu.hr)
For more information regarding the extension to Croatia, tonne-kilometre templates, and list of aircraft operators please visit the European Commission’s website.
The Environment Agency of Iceland collects the following adminstating fees in accordance with this tariff.
|
Review and approval of: |
|
| Monitoring Plans- Small Emitters | 239,600 ISK |
| Monitoring Plans- Large Emitters |
315,600 ISK |
| Revised Monitoring Plan - Small Emitters |
182,600 ISK |
| Revised Monitoring Plan - Large Emitters |
239,600 ISK |
| Update of a monitoring plan |
24,800 ISK |
| Annual emissions report - small emitters | 182,600 ISK |
| Annual emissions report - large emitters | 239,600 ISK |
The price per hour for the services of an expert is ISK 9,500 and ISK 5,800 per hour for a secretary for tasks and services with which the Agency is entrusted by laws and regulations and for which a fee maybe collected.
Large and small emitters
Small emitters are for aircraft operators with either fewer than 243 flights per period for three consecutive four-month periods or flights with total annual emissions of CO2 lower than 10,000 tonnes per year. Other aircraft operators fall under the category of „large emitters“.
Collection
The final due date of fees pursuant to this tariff is 30 days after the issue of the invoice. Penalty interest is calculated from the due date if no payment has been made on the final due date. Costs resulting from the collection of fees may be charged if the fee has not been paid on the final due date.
Verification of aviation emission reports
Under Act No 65/2007 on the emission of greenhouse gases an aircraft operator covered by the EU Emissions Trading System (EU ETS) shall annually submit to the Environment Agency a verified report on emissions of carbon dioxide. The report for 2011 must be submitted by 31 March 2012.
Reports on emissions of carbon dioxide shall be verified by an independent verification body which has been accredited to carry out verification activities in the EU ETS.
As of today, no such verification body has been accredited in Iceland, but aviation operators may use foreign accredited verification bodies within The European Economic Area (EEA) provided that:
- The verifier has been accredited to carry out verification activities for aircraft operators in the EU ETS by an accreditation body that has successfully undergone peer evaluation organized by European Co-operation for Accreditation (EA).
- The working language of the verifier is English or any of the Nordic languages (other than Finnish).
- The verifier is independent of the aircraft operator.
The decision on accepting a foreign verification body is made by the Environment Agency which publishes a list on its website of all verifiers that have been accepted (see below). A verification body that wishes to work for aviation operators administered by Iceland shall send their accreditation certificate in English or any of the Nordic languages (other than Finnish) to the Environment Agency.
The Environment Agency can under certain conditions accept verification bodies even though the criteria stated above have not been met.
List of accredited verifiers which have been accepted by the Environment Agency to carry out verification activities for aircraft operators in the EU Emissions Trading System (EU ETS)
British Standards Institution trading as BSI
Beech House
Breckland
Linford Wood
Milton Keynes
MK14 6ES
Contact: Mr Andrew Launn
Tel: +44 (0)845 080 9000
Email: Andrew.Launn@bsigroup.com
Website: www.bsigroup.com
Umboðsaðili á Íslandi: BSI á Íslandi
Skúlagötu 19
101 Reykjavík
Tel: +354 414 4444
Complete Integrated Certification Services Ltd
Queens Road
Penkhull
Stoke-on-Trent
ST4 7LQ
Contact: Mr Tim Watts
Tel: +44 (0)1782 411008
Fax: +44 (0)1782 764363
E-Mail: info@cicsglobal.com
Website: www.cicsglobal.com
Emissionshandelsgesellschaft
Michael Pohlmann KG
Bernard-Eyberg-Straße 81
51427 Bergisch Gladbach
Germany
Contact: Mr. Michael Pohlmann
Tel: +49 (0)2204 96 37 15
Fax: +49 (0)2204 96 37 14
E-Mail: m.pohlmann@emissiontra.de
Website: http://www.emissiontra.de
VerifAvia (UK) Ltd
Suite 13399, 2nd Floor
145-157 St John Street
London
EC1V 4PY
Contact: Mr Julien Dufour
Tel: +33 665 697 489
Fax: +33 183 621 618
E-Mail: julien.dufour@verifavia.com
Website: www.verifavia.com
Verifier Services
25 Drury Street
Dublin 2
Ireland
Contact: Mr. Colm O´Connor
Tel: +353 (1) 6727074
Fax: +353 (1) 6778025
E-Mail: info@verifier.ie
Website: http://www.verifier.ie





