Options for improving the EU Emissions Trading Scheme (EU ETS) for aviation

Kurzfassung

The EU Emissions Trading Scheme (EU ETS) for air transport has been in force since 2012. Since 2013, CO2 emissions from flights within the EEA (European Economic Area = EU27 plus Norway, Iceland and Liechtenstein) have been regulated by the European ETS. In July 2021, a first proposal by the European Commission for a review of the current EU ETS has been published, as part of its ‘Fit for 55 package’, which shall then go through the legislative process. This revision of the EU ETS is likely to strengthen the existing scope and rules for aviation – also considering its interplay with the CORSIA (Carbon offsetting and reduction scheme for international aviation), the first global CO2 offsetting scheme for civil aviation. The challenges to be addressed by the revised EU ETS for aviation are manifold: the inclusion of aviation’s non-CO2 species (NOx, H2O, SOx, aerosols, contrails and contrail cirrus), the relationship between the EU-ETS and CORSIA, the contribution of air transport to the 2030 EU GHG reduction target and to the commitment to EU climate neutrality in 2050 (European Green Deal), the introduction of incentives for the use of sustainable aviation fuels (SAF), and its interplay with a potential taxation of kerosene. This paper discusses the pros and cons of different options for revising the current EU ETS for aviation. On this basis, recommendations for a revised EU ETS for air transport will be provided.