Emissions trading in aviation: flights from the European Economic Area (EEA) to the UK (3)
Dear Reader,
Today we would like to inform you about an important regulation regarding the geographical scope of the European Emissions Trading System (EU ETS). Flights from the European Economic Area (EEA) to the United Kingdom will continue to be subject to the EU ETS. Therefore an unchanged reporting and submission obligation has applied to these flights from 01/01/2021.
The UK left the EU on 31/01/2020. A transitional arrangement under which the UK also participated in the EU ETS ended on 31/12/2020. Accordingly, flights between the EEA and the UK and within the UK would no longer have fallen within the geographical scope of the EU ETS as of 01/01/2021.
However, the EU and the UK concluded a trade and cooperation agreement on 30/12/2020, which entered into force on 01/05/2021 but was retrospectively applied from 01/01/2021. According to Article 392(4) of this agreement, the EU ETS covers flights from the EEA to the UK. Flights to Gibraltar, Overseas Territories or other UK territories are not covered. As an aircraft operator, you must take this regulation into account when preparing your 2021 emissions report.
Where aircraft operators have provided transport services on flights between the EEA and the UK for 2010 or 2014, we will allocate allowances to these services retrospectively from 2021, probably by the end of the year.
Please note that flights from the UK to the EEA or within the UK are covered by the UK Emissions Trading System and aircraft operators may be subject to reporting and surrender obligations there.
The European Commission provides information on its website.