Emission Trading - Aviation

Basic information

On 13th January 2009 Directive 2008/101/EC amending Directive 2003/87/EC was published to include the aviation sector into the European Greenhouse Gas Emission Allowance Trading Scheme (EU ETS). The Act No. 164/2010 Coll. amending the Act No. 695/2004 Coll., on the Conditions of Greenhouse Gas Emissions Allowance Trading, transposed this directive into the Czech legislation.

According to EU and Czech legislation, aircraft operators falling under the administration of the Czech Republic, are required:

  • Monitor and report greenhouse gas emissions from 2010 onwards. This involves drawing up a monitoring plan for annual emissions, which is subject to approval by the Ministry of the Environment.
  • Aircraft operators, who want to apply for free allocation of allowances for the first (2012) and second trading period (2013 – 2020) are also required to monitor and report its tonne-kilometres data of the year 2010. The monitoring plan of tonne-kilometres data has to be approved by the Ministry of the Environment as well.
  • Submit to the Ministry of the Environment the report of annual emissions, verified by independent and accredited verifier. The deadline for the first submission of annual emission reports is 15th March 2011.
  • Aircraft operators applying for free allocation of allowances have to fill in the application form (available in section “Download it...”) and together this application have to submit to Ministry of the Environment the verified report of tonne-kilometres data. The dead line for submission is also 15th March 2011.

The free allowances available to the entire sector will be distributed amongst operators via a benchmarking procedure, where the individual allocation for each operator is proportional to the (reported and verified) tonne-kilometres that were flown over the course of the year 2010.
In the pre-trading period (2010-2011) aircraft operators are not required to surrender emissions allowances equivalent to your reported emissions for the years 2010 and 2011. The first trading period starts from 1st January 2012 onwards. Starting from April 2013 aircraft operators will be required to surrender each year emission allowances that cover the verified reported data for the previous year.

Free allocation of allowance

On 26th September 2011 the European Commission adopted its Decision 2011/638/EU on benchmarks to allocate greenhouse gas emission allowances free of charge to aircraft operators pursuant to Article 3e of Directive 2003/87/EC of the European Parliament and of the Council. The text of above-mentioned Decision is available in section “Download it...”. Based on published benchmarks the Ministry of the Environment of the Czech Republic calculated the free allocation of allowances for the first and second trading period of EU ETS. The free allowances will only be allocated to those operators, who applied for free allocation of allowances through Ministry of the Environment and in accordance with the Art. 3e of the Directive 2003/87/EC. The free allowances calculation to operators administered by the Czech Republic is available in section “Download it...”.

The annual share of free allocation of allowances will be assigned to each aircraft operator’s account at single European Union registry by 28th February of each calendar year of trading period. The single European Union registry has been under the development of European Commission. For more information regarding the single European registry you can contact Mr. Miroslav Řehoř email: MRehor@ote-cr.cz or Ms. Zuzana Stašková email: ZStaskova@ote-cr.cz.