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European Commission Launches Public Consultation on Market-Based Measures for Aviation Emissions

The European Commission has initiated a public consultation to explore policy options for using market-based measures (MBMs) to reduce CO2 emissions from international aviation. The consultation also addresses the potential inclusion of non-European flights under the European Union Emissions Trading Scheme (EU ETS) from 2017, unless the EU lawmakers decide to extend the suspension of the law.

In 2008, the EU passed a law to regulate all civil aircraft using airports in the EEA-EFTA, requiring them to comply with the EU ETS and account for CO2 emissions throughout their flights, both within and outside of European airspace. However, this law faced opposition and lawsuits from various countries, leading to the implementation of the "Stop the Clock" measure, which temporarily suspended the law and allowed the International Civil Aviation Organisation (ICAO) to develop its own MBMs.

The "Stop the Clock" measure is set to expire at the end of 2016, and any future adjustments to the EU ETS will depend on the progress made by ICAO in developing a global MBM. ICAO is expected to finalise its plan for a global MBM later this year, following which the European Commission will report to the European Parliament and Council on the progress made and actions taken to implement an international agreement on a global MBM from 2020.

The consultation, which will run from March 7 to May 30, aims to gather experiences, suggestions, and opinions from stakeholders and experts in the aviation and climate change fields. It poses several questions, including the role of international aviation in achieving climate goals, the interaction between domestic and international aviation emissions, the principles and criteria for reviewing the EU ETS, and options for the EU ETS beyond 2020.

The consultation also explores the exemption of small non-commercial aircraft operators from EU legislation from 2021 onwards and solicits alternative measures, if any, that should be considered for these operators.

CO2 emissions from international aviation are expected to significantly increase by 2050, making the sector a target for environmental campaigners and governments. Several countries and subnational governments, such as South Korea, China, and Shanghai, are already taking steps to address aviation emissions through their respective carbon markets.

The outcome of the consultation will contribute to shaping future policies for addressing aviation emissions within the EU and globally.


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