Directive (EU) 2023/958

What it is

to review the EU Emissions Trading Scheme (EU ETS) for aviation emissions in line with the EU's 2030 climate objectives. PROPOSED ACT: Directive of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: Directive 2003/87/EC of the European Parliament and of the Council established a system for greenhouse gas emission allowance trading within the Union, in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner (EU ETS). Aviation activities were included in the EU emissions trading system by Directive 2008/101/EC of the European Parliament and of the Council. The Committee on the Environment, Public Health and Food Safety adopted the report by Sunčana GLAVAK (EPP, HR) on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC as regards aviation’s contribution to the Union’s economy-wide emission reduction target and appropriately implementing a global market-based measure. The proposal to amend the EU Emissions Trading Scheme (EU ETS) legislation as regards its application to aviation is part of the 'Adjustment to Target 55' package which aims to enable the Union to reduce its net greenhouse gas emissions by at least 55% by 2030 compared to 1990. The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows: Members recalled that aviation accounts for 2-3% of global CO2 emissions . In the EU, aviation emissions account for 3.7% of total CO2 emissions. The aviation sector is responsible for 15.7% of transport emissions, excluding non-CO2 emissions. Inclusion of emissions from flights to non-European Economic Area (EEA) countries Members proposed that the EU ETS should apply to all flights departing from an airport in the EEA from 30 April of the year after the new rules enter into force. This would contribute to an international level playing field while ensuring a level playing field on routes. To ensure that emissions are not double-counted, flights from the EEA to third countries operating the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) would be able to deduct the financial value of purchased CORSIA credits from the EU ETS surrender requirements. Free allowances would be reduced by 50% in 2024 and phased out by 2025 . Of the total quantity of allowances for the period 1 January 2024 to 31 December 2029, it is proposed that 20 million be reserved for allocation in the same manner as a contract for difference, covering the price difference between fossil kerosene and sustainable aviation fuels, to aircraft operators that use more sustainable aviation fuels, giving priority to renewable fuels of non-biological origin. - 75% of the revenues generated by the auctioning of aviation allowances (except those earmarked as own resources in the EU budget) be used to support innovation and new technologies, including the deployment of…

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