Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 1 CCIM Stakeholders Dialogue 23 januari 2007 Proposal Directive 2006/0304 amending directive 2003/89/EC so as to include aviation activities in EU ETS Els Van den broeck Dienst Lucht en Klimaat Departement Leefmilieu, Natuur en Energie

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 2 AGENDA Context Key elements

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 3 CONTEXT Proposal 2006/0304, 20/12/06: Inclusion aviation in EU ETS by amending directive 2003/87/EC »Explanatory memorandum »Impact assessment (full and summary) Grounds »UNFCCC + Kyoto Protocol »ICAO Resolution 35-5 »6 e EAP (2002) »Communication ‘Reducing the climate change impact of aviation’ (July 05) + Stakeholder consultation »Council conclusion (02/12/05) »ECCP 2 WG aviation (April 06) »European Economic and Social Comitee (April 06) »Resolution European Parliament (July 06)

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 4 Self standing proposal, not part of review EU ETS directive Objective => To reduce the climate change impact attributable to aviation Timing German Presidency »15/01/07: Start discussions in WP ENV »20/02/07: Policy debate Council Environment »29/06/07: Progress report Council Environment => Effective starting possible from 2011 (reporting from 2010 on) CONTEXT

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 5 Activities » : all intra EU flights : all flights arriving at and departing from EU airports »Included: domestic flights »Excluded: state flights, military flights, flights under visual flight rules, maintenance, testing and training flights, maximum take off weight 5700kg »Only CO 2 Separate proposal to adress NO x by the end of 2008 »Aircraft operators are responsable entity KEY ASPECTS PROPOSAL

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 6 Administering member state »1 MS for each operator, no permitting system »Cfr Granting operating licence »Or, MS with greatest estimated attributed emissions from flights in base year (2006 or later) »List participating aircraft operators by February 2009 Monitoring and reporting and verification »Same approach as for existing scheme »Operators must monitor and report emissions to competent authority »Reports must be verified by an independent verifier »Guidelines for the monitoring, reporting and verification of emissions from aviation will be adopted by the Commission »Starting in 2010, report by March 30th KEY ASPECTS

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 7 CAP EU level »Cap based on average annual emissions from flights covered by the scheme between based on best available data »Stabilisation at level of historical emissions »Historical emissions = average KEY ASPECTS

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 8 Allocation: harmonised methodology % auctioning » : ~ average % auctioning NAP’s : see review directive »Auctioning by MS: ~ share total attributed aviation emissions for reference year »New entrants: auctioning »Revenues to be used for mitigation, adaptation, research, costs administration % free »Application procedure »Bench mark verified tonnekm data »Allowances will be distributed in proportion to each operator’s share of the total tonne-kilomtre data »Issuance on February 28th, Surrendering by April 30th KEY ASPECTS

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 9 Trading »Allowances can be freely traded »Aircraft operators may use allowances allocated from other sectors »Aircraft operators may use CERs and ERUs up to the average of the limits proposed by Member States for other sectors in their NAPs »Allowances allocated to the aviation sector cannot be used directly by other sectors. However aircraft operators will be able to request the exchange of an allowance allocated to it for an allowance backed by an AAU which can be used by other sectors KEY ASPECTS

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 10 Penalties »Same penalties as for existing EU ETS »Member States required to provide effective, dissuasive and proportionate penalties »As an ultimate sanction, a Member State could revoke or suspend an operator’s operating authorisations Third country measures »Third country measures with impact on aviation emissions at least equivalent to Directive => flights arriving from that country can be excluded in next period KEY ASPECTS

Departement Leefmilieu, Natuur en Energie – afdeling Lucht, Hinder, Risicobeheer, Milieu & Gezondheid Koning Albert II-laan 20 bus 8, B-1000 Brussel 11 Aviation and climate change website: MORE