COUNCIL AND PARLIAMENT AGREE ON REVISED ETS FOR AVIATION
On 7 December, the Council and the European Parliament reached a provisional political agreement on the revision of the EU emissions trading system (EU ETS) rules applying to the aviation sector.
Both institutions agreed that the EU ETS will apply for intra-European flights (including departing flights to the United Kingdom and Switzerland), while CORSIA will apply to for extra-European flights to and from third countries participating in CORSIA ('clean cut') from 2022 to 2027. When emissions from flights to and from outside the European Economic Area reach levels above 85% of 2019-levels, they will have to be offset with corresponding carbon credits, invested in emissions reductions in countries participating in CORSIA.
The agreed text notes that in 2025, the Commission will assess if the implementation of CORSIA by operators is sufficient to reduce aviation emissions in light of the objective of the Paris Agreement. If CORSIA delivers on its objectives, the Commission will make a proposal to the Council and Parliament to extend the clean cut. If CORSIA is not sufficient, the Commission will propose to extend the scope of ETS to all flights departing from the EEA.
The co-legislators agreed to gradually phase out free emission allowances for the aviation sector, with full auctioning from 2026. They also agreed to set aside 20 million free allowances to incentivise the uptake of sustainable aviation fuels.
The provisional political agreement will now be formally adopted by the Council and the Parliament, before its publication to the Official Journal. With regards to the main ETS file, the negotiating teams are expected to meet one last time on 16 December, in order to find a compromise, namely on the ETS for road transport.
Source: Council of the EU