SAAFA: European Union

On 12 November 2012, EU Commissioner for Climate Action, Connie Hedegaard has announced that EU was suspending the inclusion of aviation in the EU ETS to and from non-European countries until after the ICAO General Assembly next autumn.

The European Union believes that there is a chance to get an international regulation for addressing international aviation emissions at the next ICAO Assembly in 2012 and wants to deliver a positive gesture for the negotiation. The decision entails that the EU would not require allowances to be surrendered in April 2013 for emissions from flights to and from Europe during the whole of 2012. The EU ETS will however continue to apply to intra-European traffic.

The EU's Emissions Trading Scheme (EU ETS) was established in 2003 and started operation on 1 January 2005 for land based industrial installations. From 1 January 2012 aviation activities of aircraft operators that operate flights arriving at and departing from Community aerodromes were to be included. The decision raised strong opposition from countries including United-States, China and India. The application of the EU ETS to aviation includes an incentive for airlines to use biofuels which qualify for zero emissions provided that they comply with the sustainability criteria of the European Directive for Renewable Energy.