European Commission: Environment Directorate General Slide: 1 ECCP Aviation Working Group Mandate and draft work programme Directorate C – Air and Chemicals DG Environment European Commission

European Commission: Environment Directorate General Slide: 2 Overview l The Commission Communication l The Working Group on aviation m The mandate m Composition m Logistics m Provisional dates m Workplan m Conclusions l Next steps

European Commission: Environment Directorate General Slide: 3 Commission Communication l Communication adopted on 27 September 2005 l Recommends including the climate impact of the aviation sector in the EU emissions trading scheme l Part of a comprehensive approach

European Commission: Environment Directorate General Slide: 4 Commission Communication Identifies key design parameters: l ENTITY: aircraft operators l EMISSIONS COVERAGE: CO2 and non-CO2 impacts should be addressed to the extent possible l SCOPE: in environmental terms, the preferred option is to cover all flights l ALLOCATION: harmonised allocation methodology

European Commission: Environment Directorate General Slide: 5 Working Group on Aviation l Aviation working group under ECCP l To consider ways of including aviation in the EU ETS in accordance with the terms of reference annexed to the Communication

European Commission: Environment Directorate General Slide: 6 Working Group: mandate l Coverage of the climate impact of aviation l Scope of emissions covered l Approach used for calculating and apportioning the overall emissions limitation for the aviation sector l Compliance l Administration

European Commission: Environment Directorate General Slide: 7 Working Group: composition l Chaired by the Commission l 25 stakeholders made up of: m Experts from Member States m Key stakeholder organisations including industry; consumer; and environmental organisations. l Commission officials of relevant services l Contributions from external experts where appropriate

European Commission: Environment Directorate General Slide: 8 Working Group: logistics l Meetings in Brussels l As a general rule, no reimbursement of travel costs l 4 meetings planned between November 2005 and March 2006

European Commission: Environment Directorate General Slide: 9 Working Group: provisional dates l 9 November 2005 l 26 January 2006 l 16 and 17 February 2006 l 21 March 2006

European Commission: Environment Directorate General Slide: 10 First meeting: coverage The first meeting will consider: l The types of flights which should be covered by the scheme; and l Whether there should be any exclusions from the scheme or de minimis thresholds for inclusion in the scheme

European Commission: Environment Directorate General Slide: 11 Second meeting: types of emissions The second meeting will consider the types of emissions to be included in the scheme and the options for covering non-CO2 emissions such as: l an emissions multiplier; or l ancillary instruments such as differentiation of airport charges according to NOX emissions.

European Commission: Environment Directorate General Slide: 12 Third meeting: allowances l Two day meeting l Day 1 will consider the mechanics of how to include aviation in the ETS given that international aviation is excluded from targets under the Kyoto Protocol l Day 2 will consider: m issues relating to setting the overall limitation on emissions from the aviation sector; and m the apportionment of that limitation between operators

European Commission: Environment Directorate General Slide: 13 Fourth meeting: permitting, MRV and compliance issues The fourth meeting will consider questions related to: l permitting; l monitoring, reporting and verification of emissions; and l enforcement including penalties for non- compliance.

European Commission: Environment Directorate General Slide: 14 Conclusions l At the end of each meeting the chairman will circulate minutes for comments from and adoption by the group l By 30 April 2006 the chairman will prepare a final report based on the minutes of the meetings. The final report will draw conclusions as well as set out key options based on discussions in the group

European Commission: Environment Directorate General Slide: 15 Next steps l Report from WG by 30 April 2006 l Report on review of ETS by 30 June 2006 l Aim to present legislative proposal end of 2006