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Europe Daily Bulletin No. 11008
SECTORAL POLICIES / (ae) ets/icao

MEPs back an ETS applied to European air space

Brussels, 30/01/2014 (Agence Europe) - MEPs from the European Parliament's environment committee want to maintain pressure on the International Civil Aviation Organization (ICAO) in order to obtain an assurance from it an agreement will be finalised in 2016 on a global market instrument that will enter into force in 2020 so as to reduce CO2 emissions from a sector that has remained on the sidelines of the fight against climate change. On Thursday 30 January, MEPs gave their clear and strong backing (41 votes to 7, with 6 abstentions) to the Commission's approach aiming to apply the Emissions Trading System (ETS) directive (2008/101/EC) to the European Regional Airspace from 1 January 2014 so as to cover all flights between airports in the European Economic Area. This is a system with a much wider coverage than the Stop-the-Clock system that currently restricts application of the ETS directive to intra-European flights by means of a temporary one-year derogation granted to intercontinental flights in 2012, with the third country airlines concerned thus being dispensed from paying for 15% of the quotas allocated to them.

However, the MEPs went further than the European Commission. Following their rapporteur, Peter Liese (EPP, Germany), they are calling for the Commission to analyse the results obtained from ICAO in 2016 and, should the promised agreement not be concluded in time, they are calling for the Commission to provide for ensuring the initial ETS directive (designed to cover all flights departing from and destined for European airports) be applied from 2017. The Commission itself proposed to apply the ETS to the European air space until 2020 - the year scheduled for the entry into force of the global market mechanism.

The main amendment that was approved was the requirement for auction revenues to be earmarked for R&D, for the improvement of aviation's environmental performance, and for the UN's Climate Fund in support of developing countries. Liese is particularly pleased about this because, in his view, this innovation should favour acceptance of the ETS at international level. To his great satisfaction, he received the mandate to negotiate with the Council (40 votes for, 6 against and one abstention) - although these negotiations are likely to be particularly difficult.

“Germany, France, the UK and others too want to keep the Stop the Clock philosophy. We don't know if this is until 2016 or 2020. The UK doesn't want anything to change until 2020. There is still no official position at the Council. Flexibility is needed”, Liese said during a press conference. “Auction revenues are currently paid back into the budgets of the member states. A legally binding earmarking is needed for these credits. Finance ministers do not agree. This is not a tax but an environmental instrument. For the world climate agreement to be concluded in 2015, it is important that the industrialised countries do not content themselves with making offers of emissions reductions, without promises of finance for the developing countries”, he added, calling for a necessary compromise.

Two trialogues have been scheduled - on 18 February and 4 March - but a third trialogue might also be needed. In this case, this would be at the end of March in the environment committee. Time is running short because an agreement absolutely must be found before the end of April.

Summarising the committee's vote, Liese stated: “We have accepted - with a few amendments - the approach including all flights in the European air space. We are giving one more year to the Stop the Clock system but the payments would be due in April 2015. We hope for an agreement in 2016. At that time, the Commission can make a proposal drawing conclusions from the result - either the international regulation will apply, or the initial ETS directive will be in force in 2017, but the payments would be to make in 2018”.

In the view of Matthias Groote (S&D, Germany), the chair of the environment committee, “it is the best compromise we could achieve. We support the European Regional Airspace approach, so flights on routes between airports in the European Economic Area (the EU and EFTA countries) and airports in third countries would only be covered with regard to distance travelled within the EEA.”

The Transport & Environment (T&E) NGO believes that the MEPs have stood up to political pressure from member states and industry by approving the proposal for an ETS covering all of Europe's airspace. “Although the proposal regulates only 35% of airline emissions compared to the original EU ETS, it crucially captures a portion of long-haul flights - where most of aviation's greenhouse gases originate”, T&E was pleased to state. (AN/transl.fl)

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