Free Allocation
Aircraft operators have received a free allocation of allowances for EU ETS 1 for the years 2012 to 2023 based on their tonne-kilometre data reported for 2010.
For the years 2024 and 2025, the emissions reported for 2023, most of which are subject to surrendering obligation, are now the basis for the recalculation of the free allocation. The emissions reported by the individual aircraft operators are first set in relation to the total quantity of emissions reported by all aircraft operators. This ratio is then applied to the total quantity of allowances to be allocated free of charge in order to determine the free allocation for the individual aircraft operators. In 2024, 63.75 per cent of the total allowances available for aviation will still be allocated free of charge, and in 2025 42.5 per cent. The remaining allowances will be auctioned. The European Commission has already announced the total number of allowances available for 2024, which amounts to 28,866,578. The issuing of allowances will take place by 30/06 of the respective year. Aircraft operators do not have to submit an application for this. From 2026 onwards, with the exception of the use of SAF, there will no longer be any free allocation.
From 2024, commercial aircraft operators can apply each year retrospectively for an allocation of free allowances for using eligible aviation fuels within the meaning of Article 3c(6) of the EU Emissions Trading Directive. The application and proof of eligibility are submitted with the emissions report for the year in question. The free allocation is only granted for the proportion of used eligible aviation fuels for which EU ETS 1 allowances were also surrendered. In addition, applications for the allocation of free allowances can also be submitted for national flights to and from outermost regions.
Under , a free allocation of emission allowances (as in the EU ETS 1) or carbon offset credits is not foreseen.
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Auctions
Another way to obtain allowances is to participate in the auctions of EU allowances, for example at the Leipzig Energy Exchange (EEX). Participation is voluntary.
Further information on our website under Auctioning
Other Aircraft Operators or Other Companies Subject to Emissions Trading
A central element of emissions trading as a "cap and trade" system is that allowances can be traded between individual emitters. Emissions allowances can also be traded between companies from different sectors covered by emissions trading. This leverages different emission reduction costs: A company that can reduce emissions at a lower cost than others may sell its surplus allowances. This represents cost savings for both parties.
Furter information on our website under Understanding European Emissions Trading
Financial Intermediaries (Traders, Banks)
In addition to companies subject to emissions trading, all legal entities and natural persons can also trade allowances. In practice, a variety of financial intermediaries offer a range of services. Your local bank may also be able to help.
Consulting Firms
In addition to financial intermediaries, there are also a number of specialised consulting firms that can help obtain allowances and project credits.
Certified Emission Reduction (CER) and Emission Reduction Unit (ERU)
It was still possible to use CERs and ERUs by exchanging them for allowances until 30/04/2021. In the fourth trading period, the utilisation of credits from projects outside the EU is no longer planned.
Any CERs (and ERUs) still on offer can therefore no longer be used.
Further information on our website under Union registry