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Aviation EU emissions trading system

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The European Commission has presented a proposal to the European Parliament and the Council to keep the aviation EU ETS in its current limited form, applying only to flights within the EEA for 2017 and beyond. This follows the agreement reached by the International Civil Aviation Organisation (ICAO) in October for a global offsetting scheme to begin in 2021.

The Commission agreed in 2012 to limit the scope of the EU ETS to flights within the EEA until 2016, as a number of non-EU countries opposed its application to flights to and from European airspace. This so-called ‘stopping the clock’ measure was also intended to support the development of a global approach by the ICAO.

Since 2012, all airlines operating in Europe have been required under the EU ETS to monitor, report and verify their emissions, and to surrender allowances against those emissions. They receive tradeable allowances covering a certain level of emissions from their flights per year.

Issue: 1341
Categories: News , Indirect taxes , VAT
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