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MEPs seek limit on suspension of aviation EU ETS

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The EU Parliament’s environment, public health and food safety committee has voted for an amendment to the proposal for a continued restriction of the aviation EU emissions trading system (ETS) to flights within the EEA only. The amendment would lift this restriction after 31 December 2020 and speed up the reduction of aviation allowances from 2021.

Besides calling for a limit to the duration of the restriction on the aviation ETS, the committee’s amendments would reduce to 50% the proportion of emissions allowances the aviation sector receives free, as against the current 85%. The committee also wants EU member states to earmark the revenue generated by the auctioning of emissions allowances for climate change policies. The amendment will be put to a vote by the full EU Parliament during the plenary session in September.

The aviation EU ETS was first introduced in 2012, but several non-EU countries opposed the inclusion within the scheme of flights outside the EEA. The EU agreed to suspend application of the scheme to non-EEA flights until the end of 2016, and the latest proposal will continue the suspension for 2017 and beyond, while the new global scheme comes into effect. The International Civil Aviation Organisation reached agreement in October 2016 on a global offsetting scheme to begin in 2021, becoming compulsory for major aviation countries in 2027.

See http://bit.ly/2tdpigy.

Issue: 1362
Categories: News , International taxes , VAT
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