Further development of the EU ETS for aviation against the background of the introduction of a global market-based measure by ICAO : final report

Air transport is a sector with particularly dynamic emissions growth. The European Union has led the way in climate protection and included aviation in the European Emissions Trading Scheme (EU ETS) in 2012. To support the international process for a global market-based measure to limit international aviation emissions under the umbrella of the International Civil Aviation Organisation (ICAO), the scope of emissions trading has been reduced. Instead of covering all flights taking off or landing in the territory of the European Economic Area (EEA) as originally planned, only intra-EEA flights will be covered by emissions trading until 2023. The aim of the project is to explore the interactions between the two market-based measures tackling aviation emissions: the EU ETS and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Therefore, several options are explored how the two schemes can be combined. While in principle both schemes monitor emissions, MRV rules differ both on procedural level as well as in the details. The MRV cycles are presented and differences especially in regard to emission factors for alternative fuels are assessed. As the EU ETS currently covers only intra-EEA flights, the role of non-EEA operators on those routes is assessed. A quantification of the extent to which the two market-based measures, the EU ETS and CORSIA, can be expected to contribute to the EU 2030 aviation emissions target is included in the study as well as ways to promote transition through an aviation innovation fund.