inclusion of aviation in eu ets

8/6/2019 Inclusion of Aviation in EU ETS

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EU ETS Aviation

Greenhouse Gas Emissions

Verification



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Who are we?

Founded in 1878

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certification Services



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A Hallmark of Leadership

Climate Change Programme

A global leader in the verification of greenhouse gas emissions.

A series of services addressingmandatory & voluntary reporting of greenhouse gas emissions

Climate ChangeProgramme

EU ETS CDM UK ETS VoluntaryMarkets ISO 14064 EU ETS

Aviation

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customers



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What is EU ETS?

Started in 2005, the EU ETS is a compulsory cap and trade system.

The cap is the total amount of emission allowances to be issued for a given year under the EU ETS. Since, each allowance represents the right to emit 1 tonne of CO2 - or an amount of another greenhouse gas giving the same contribution toglobal warming as 1 tonne of CO2 - the total number of allowances, i.e. the

³cap´, determines the maximum amount of emissions possible under the EUETS.

Each EU Member assigns a competent authority (CA) for itself.

Participants must design a monitoring plan (MP) as per the guidelines publishedby European Commission (EC) for monitoring and reporting of greenhousegases.

The monitoring plan must be submitted to the CA for approval.

Participants must monitor emissions from included activities as per the approvedMP & submit a third party verified annual emissions report to the CA.

Participants must then surrender allowances equivalent to their verified annualemissions.



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Inclusion of Av iation in EU ETS

Nov, 2008: Inclusion of aviation sector in EU ETS

Jan, 2012: Emissions from all domestic and international flights ± from or toanywhere in the world ± that arrive at or depart from an EU airport will becovered by the EU ETS

CO 2 emissions from the entire flight will be covered, including CO 2 emitted innon-EU airspace.

Calculation of CO2 emissions:y CO 2 emissions = Fuel consumption x emission factor

EU based airline operators regulated by their state,

Non-EU based airline regulated by a member state where they have the most

traffic in the base year.In 2009, EC published a list of aircraft operators specifying their administeringmember states. Updated each year by 1 Feb.



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What does it mean for the operators?

Airline operators need to:y monitor emissions from 1 st Jan, 2010 & submit their 1 st verified annual emissions report

to their CA by 31 st March, 2011.y apply for free allowances by submitting verified 2010 tonne-kilometre benchmark data

to their CA.

Monitoring & submission of verified reports to be done annually from 2010 At the end of the year if an operator does not have enough allowances to cover their annual CO2 emissions it will need to buy more

Failure to surrender enough allowances will result in a civil penalty in the form of 100 Euros per allowance

Surplus allowances can be either sold in the market or banked for covering futureemissions



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What is the scope?

All flights, whether EU- or foreign-based, starting from or terminating at anaerodrome in a Member State of the Community are covered by the scheme:

Flights within a Member StateFlights between Member StatesFlights between a Member State and third country

Annex I of the directive mentions the aviation activities covered by EU ETS

It does not include the following flights:Subsequent flights after first landing in third country (e.g. Vilnius ± Shanghai/Shanghai ± Tokyo )Flight sections within/between third countries before direct flight into EU (e.g. HongKong ± Bangkok / Bangkok ± Vilnius)



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Are there any exemptions?

Certain aviation activities enlisted in the Annex I to the Directive are exempt fromthe scope. Those include:

Flights for the transport of the reigning Monarchs, their families, Heads of State,Heads of Government and Government MinistersMilitary, customs and police flightsSearch, rescue, fire-fighting flights; humanitarian flights and emergency medicalservice flightsFlights performed under visual flight rulesRound flightsTraining flightsFlights for purpose of scientific researchFlights performed by aircraft with maximum take-off mass of less than 5,700 kg

Flights performed by commercial aircraft operators, falling under the ³de-minimis´ rule



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What is ³ de minimis´ threshold?

Commercial aircraft operators only are exempt from the scheme when at leastone of the following thresholds applies:

fewer than 243 flights per period for three consecutive four-months periods within acalendar year (Jan-Apr; May-Aug; Sept-Dec)annual total CO2 emissions of less than 10 000 tons

Definition of commercial operators as per EU ETS:³an operator that, for remuneration, provides scheduled or non-scheduled air transport services to the public for the carriage of passengers, freight or mail´ ³All commercial air transport operators must hold an air operator¶s certificate (AOC)under Part I of Annex 6 to the Chicago Convention. Operators without such acertificate are not ³commercial air transport operators´. However, operators that do nothold AOC, may still be able to demonstrate their commercial status through equivalentcertification

The thresholds are applied solely to the flights within the EU and between EUand third countries.

No ³de minimis´ threshold for the private jets



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Who qualifies as a µsmall emitter¶?

µSmall Emitters¶ are non-commercial aircraft operators who operate:fewer than 243 flights per four-month period for three consecutive periods (Jan-Apr,May-Aug, Sept-Dec); ORflights with total annual fossil CO2 emissions of less than 10,000 tonnes per year.

Small emitters are eligible to use a simplified method to determine their fuel

consumption for EU ETS monitoring and reporting purposes, as specified in theMonitoring and Reporting Guidelines.



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M easuring the Emissions

CO2 emissions from aviation activities shall be calculated using the formula:

CO 2 emissions = Fuel consumption x emission factor

Fuel consumption for each flight, each type of fuel and by the auxiliary power units to be monitored

Use of standard emission factors, e.g.:

EF (Jet kerosene) = 3.15 t CO2/t

The amount of aviation activity to be calculated in tonne-kilometre using thefollowing formula:

Tonne-kilometres = distance × payloadDistance = Great circle distance (GCD) between the aerodrome of departure and theaerodrome of arrival + 95 kmsPayload = total mass of freight, mail and passengers carried



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Timeline to be followed

31 Aug2009

Submission of a monitoring plan (MP) to the Competentauthority (CA)

31 Dec2009

� CA approves MP

20 10� Monitoring in 2010 as per the approved MP

31M arch ,

20 11

Submission of verified report for free allowances for the 1 st & the2nd trading periods

30 June , 20 11

Submission of all the valid applications to EC by CA

30 Sept , 20 11

Benchmark, the number of free allowances, allowances for auction and special reserve decided by EC

28 Feb , 20 12

CA issues free allowances to each aircraft operator

30 April , 20 13

Surrender of allowances equivalent to the verified emissions bythe operators



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Penalty for Non-Compliance

Failure to surrender adequate number of allowances calls for a penalty of 100 Euros per tonne of CO2 equivalent emitted

Failure to get the benchmark tonne-kilometre data verified could prevent anoperator from receiving free emissions allowances. Operators then need topurchase allowances on the open market, the current price of which isapprox. 14¼ per tonne.

Failure of enforcement measures to ensure compliance may lead to anoperating ban on that operator



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Why choose SGS for verification?

More than 200 experienced greenhouse gas assessors globally

A member of the IATA & actively participated in working groups on the inclusionof aviation in the EU ETS organized by the EC, the European Accreditationforum (EA) & the International Emissions Trading Association (IETA).

More than 200 experienced greenhouse gas assessors globally

Vast experience in EU ETS : verification of more than 450 installations done

Awarded best verifier EU ETS 2006 & 2007 by Environmental Finance

As part of its risk minimisation approach, SGS offers a split verification service:y an initial assessment of compliance is carried out during the monitoring year

with final data verification occurring prior to reporting deadlines.



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Experience speaks!

Symbolic of its vast experience is the vast list of its renowned clients :



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Puneet Kumar Asst. M anager

Climate Change Programme ( M E & SE AP)SGS India Pri vate Limited

Phone: +91 124-6776445Mobile: +91 9871002381

Email: [email protected]:

http://www.climatechange.sgs.com/home_climatechange_v2/eu-ets-and-aviation-climatechange.htm

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inclusion of aviation in eu ets

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