European Commission Announces Temporary Suspension of Aviation Emissions Law

The European Commission has announced that it plans to temporarily “stop the clock” for one year on enforcing the inclusion of aviation into its Emissions Trading System (ETS) for flights to and from non-European countries. The proposed suspension - announced by EU Commissioner for Climate Action Connie Hedegaard on Monday morning - came just days after a meeting of the International Civil Aviation Organization (ICAO) that saw signs of movement toward a possible deal on global aviation emissions.

Suspension details

Under the current EU scheme, airlines landing in or taking off from any of the EU’s 27 member states - as well as Iceland, Liechtenstein, and Norway - must surrender carbon permits for the emissions they produce. The aviation component of the ETS took effect on 1 January of this year, and requires airlines to buy permits for 15 percent of those carbon emissions, with the remaining 85 percent initially being provided to them for free. Carriers had originally been told that they would need to purchase and surrender these permits by 30 April 2013.

In effect, the one-year suspension announced on Monday means that the EU will no longer require that allowances be surrendered next April for the emissions from flights from or to non-EU countries during the year 2012. The monitoring and reporting obligations for these same flights will also be deferred for one year, according to the Commission.

While the requirement to purchase and surrender permits for non-EU flights is now on hold, the legislation still applies to all intra-EU flights, regardless of airline, according to the Commission.

Move follows progress at ICAO Council meeting

The EU has long pushed for a global aviation emissions deal, but decided to incorporate aviation into its ETS after deeming that the decade-long discussions at the ICAO - the UN’s civil aviation body - had been moving too slowly. However, Hedegaard told reporters on Monday, a global deal on aviation emissions has always been the 27-member EU bloc’s top priority.

Following their meeting in Montreal last week, the ICAO’s governing council agreed on Friday to establish a high-level policy group on market-based mechanisms (MBMs). The ICAO Council also agreed that the current options being discussed on regulatory market-based mechanisms will have to be reduced from the present three alternatives to one by the UN aviation body’s General Assembly in autumn of next year. There is also, according to Hedegaard, an explicit reference in the Council’s conclusions to the global market-based mechanism “that the world now needs to agree on.”

Some environmental groups, meanwhile, have met the results from last week’s ICAO meeting with a cautious - though optimistic - response. “”After 15 years of ICAO inaction, it’s crystal clear now that a global market-based measure for the aviation sector is simply a question of political will,” Bill Hemmings of Transport & Environment, a Brussels-based NGO, said in a statement. “These are critical times and the world can no longer wait.”

Response from non-EU government officials, aviation industry

The original decision to include aviation in the EU ETS from 1 January of this year had prompted substantial pushback from a wide range of countries - including the US, China, India, and Russia, among others - who argued that Brussels was exceeding its authority by charging for emissions produced outside EU airspace. China and India eventually banned their airlines from participating in the scheme without government approval.

Chinese officials were among those to welcome the European Commission’s announcement, with some officials - such as Li Gao, deputy director-general of climate change at the National Development and Reform Commission, calling the move “a step in the right direction” and arguing that the Brussels decision is a sign that “unilateral measures are not a good way to deal with climate change issues.” Jong Li, a spokesman for the Chinese Foreign Ministry, has said that Beijing is ready to continue work on the subject on a multilateral level.