15% of allowances for aviation will be auctioned
Today the European Council, the European Parliament and the EU Commission have agreed on the basic rules for including air transport in the EU emissions trading system (ETS). "This agreement is a great success: Binding rules for climate protection will also apply for air transport with its rapid increasing greenhouse gas emissions as of 2012 onwards. For the first time, there will be a cap for the emissions of GHGs. Auctioning the allowances will provide for a functioning emissions trading system. Revenues will be at the disposal of the member states and are to be used for climate protection measures," said Federal Environment Minister Sigmar Gabriel.
The compromise reached today is based on a proposal for a directive by the European Commission dated 20 December 2006. Air transport is to be included in EU ETS as of 2012 onwards. In the beginning emissions from aviation will be capped at 97% of their average 2004-2006 level. This will decrease to 95% from 2013 onwards, although there will be a review to see whether the overall amount will be decreased further. As of 2012 onwards 15% of the allowances will be auctioned, this percentage can be increased within the framework of the negotiations on the EU package of climate and energy proposals.
The member states will decide on the allocation of the auction revenues. However, it is recommended that they spend the money on a variety of different purposes, in particular in the area of climate protection. Expenditures will be made transparent by means of reporting obligations.
The compromise is close to the position supported by the German government during the negotiations. Now that agreement has been reached the aviation industry has planning certainty, with the framework conditions for future investments being well known. The EU ETS gives companies operating a modern airplane fleet with low GHG emissions a competitive advantage vis-à-vis their competitors. This holds true for the German Lufthansa, for example.
On the basis of the agreement reached today air transport will also contribute appropriately to the emission reduction goals. Airlines can buy additional allowances from other sectors or from climate protection projects in third countries (JI or CDM projects). This ensures that the air transport sector can carry out reduction measures in other countries if this is more cost efficient in the short or medium term. Therefore economic repercussions on air transport are kept at a moderate level.