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The EU ETS and theMonitoring and Reporting Guidelines

for Aviation in the EU ETS

EBACE 200912 May 2009

Hubert FALLMANN

DG EnvironmentUnit C.2European Commission

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Overview

• EU ETS – Key elements for Aviation

• Monitoring and reporting Guidelines

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EU Emission TradingSystem (EU ETS)

• In force since 1 January 2005• One common emission cap for 11,500 energy-

intensive installations across the EU• From 2012 onwards inclusion of 2,700 Aircraft

operators• Covers almost half of total EU CO2 emissions• Cost-effective strategy for reducing emissions• Step on the way to a global carbon market

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EU ETS for Aviation:Basic elements

• Total cap will be increased for inclusion ofaviation:Based on 2004-6 average annual emissionsFigure to be published by the Commission by

2 August 2009 In 2012: 97% of base year emissionsFrom 2013: 95% of base year emissions

• 85% allocation for free, rest to be auctioned• Free allocation based on benchmark related to

t-km data (to be reported for 2010)

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EU ETS for Aviation:Coverage

• Directive covers all flights to and from EU airports• Small aircraft and certain flights excluded:

Excludes planes with MTOM below 5.7 tonnes De minimis provision excludes commercial operators with:

• on average less than 2 flights per day; or• annual emissions of less than 10,000 tonnes CO2

• Detailed guidelines for the definition of aviationactivities have been published.

• Scheme can be amended to take into accountequivalent measures to reduce emissions taken byother countries.

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Overview

• EU ETS – Key elements for Aviation

• Monitoring and reporting Guidelines

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The Monitoring andReporting Guidelines

(“MRG”)

• Legally binding, although named “guidelines”• Have been developed with broad stakeholder involvement• Take into account existing industry practice (e.g.

WBCSD/WRI GHG Protocol) and IPCC 2006 guidelines fornational GHG inventories

• Principles:

CompletenessConsistencyTransparencyTrueness

Cost effectivenessFaithfulnessImprovement ofperformance

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MRG overview

• Annex I: General requirements• Annex II – XI: Calculation Methods for

stationary installations• Annex XII – XIII: Continuous measurement

(CO2 and N2O) for installations• Annex XIV: Emissions from Aviation• Annex XV: t-km data from Aviation• (Annex XVI – XVIII: Carbon Capture and

Storage)

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MRG principles:Responsibilities

• Operator develops monitoring plan (MP)• Competent authority (CA) in the administering Member

State approves MP• Operator carries out monitoring consistently with the

approved MP• Accredited Verifier (contracted by operator) verifies:

Correctness of the data Conformity/compliance with the MP

• Operator sends the annual report with the verificationstatement to the CA for approval

• (Operator surrenders a number of allowancesequivalent to the verified emissions)

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Monitoring plan

• Sets out the exact monitoring methodology,including measurement methods, data flowmanagement, internal quality controls etc.

• Key issue for aviation is ensuring thecompleteness of data:Track completeness of the fleet and flight activitiesResponsibility for the flight is defined by the call sign

(ICAO designator, if not available: tail number) inflight plan box 7

• To be submitted to the competent authority by31 August 2009

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Monitoring of FuelConsumption

Method A:Actual fuel consumption for each flight (tonnes) =Amount of fuel contained in aircraft tanks once fuel uplift for the flight iscomplete (tonnes)– Amount of fuel contained in aircraft tanks once fuel uplift for subsequentflight is complete (tonnes)+ Fuel uplift for that subsequent flight (tonnes)

Method B:Actual fuel consumption for each flight (tonnes) =Amount of fuel remaining in aircraft tanks at block-on at the end of theprevious flight (tonnes)– Amount of fuel contained in tanks at block-on at the end of the flight(tonnes)+ Fuel uplift for the flight (tonnes)

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Emissions fromaviation activities

Emissions = Fuel consumed (tonnes) * EF

• Use of standard emission factors, e.g.: EF (Jet kerosene) = 3.15 t CO2/t

• Density (if needed for converting fuel volumes to mass)to be taken from best available source (onboardmeasurement or fuel supplier, if not available standardvalue)

• Special requirements for non-standard fuels (biofuels)

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Simplified methods

• Small emitters:less than 10,000 t CO2/year orLess than 243 flights per 4 months

• Emission estimate taken from a model(approved by EU Commission), e.g.Eurocontrol’s PAGODA

• Same models allowed to closeunavoidable data gaps

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T-km data

• Actual t-km are used, not „revenue t-km“• Distance =

Great circle distance (GCD) + 95 km Aerodrome coordinates from official AIPs (Aeronautical

Information Publications) GCD calculated using WGS 84

• Payload: Mass of freight and mail:

from Mass & Balance Documentation Passengers and checked baggage:

• Standard 100 kg/Person or• taken from Mass & Balance Documentation

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Electronic Reporting

• MRG define content of the reports• Standardised Excel templates published by the

Commission to be used• More sophisticated systems provided by

Member States allowed• An XML schema for all EU ETS is under

development, allowing independent softwaredevelopers to provide even more user-friendlysolutions

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Legislation andinformation sources

• EU ETS Directive: 2003/87/EC, as amended by Directives2004/101/EC and 2008/101/EC (and 2009/29/EC)

• Monitoring and Reporting Guidelines (”MRG”): Decision2007/589/EC, as amended by 2009/87/EC; Amendment forAviation just published (2009/339/EC)

• Detailed guidelines for the interpretation of “Aviation activities”:Available from Website

• Websites: EU-Legislation: http://eur-lex.europa.eu/en/index.htm EU-ETS: http://ec.europa.eu/environment/climat/emission/index_en.htm Aviation in the EU ETS:

http://ec.europa.eu/environment/climat/aviation_en.htm Monitoring and Reporting in the EU ETS:

http://ec.europa.eu/environment/climat/emission/mrg_en.htm

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Info on the EU Emission Trading System:http://ec.europa.eu/environment/climat/emission/index_en.htm