On Thursday 6 February, the European Commission adopted a delegated regulation setting out EU rules on support financed by its Emissions Trading System (ETS1), aimed at accelerating the use of sustainable aviation fuels.
In accordance with the latest revision, in 2023, of the ETS Directive (see EUROPE 13087/4), which sets up this mechanism, 20 million allowances, valued at around €1.6 billion, have been set aside from January 2024 to encourage the early adoption of alternative fuels that limit emissions.
The allowances cover all or part of the remaining price differential between fossil paraffin and these fuels, used by operators of individual commercial aircraft on their flights covered by carbon pricing via the ‘ETS1’.
The delegated regulation establishes rules for the annual calculation of the price difference between eligible aviation fuels and fossil paraffin. It takes account of the incentives provided by the carbon price and harmonised minimum levels of taxation, as well as the resulting rules for allocating allowances.
Airlines have until 31 March to declare the use of these fuels in 2024.
For its part, the Commission will publish the difference in fuel prices by 31 May and will adopt a decision by 31 August setting out the allocation of allowances for each commercial airline that has signed up to the support mechanism.
This delegated act has been submitted to the European Parliament and the Council of the EU for examination. If there are no objections within the next two months, it will be published in the Official Journal and come into force.
Delegated regulation: https://aeur.eu/f/fem (Original version in French by Nithya Paquiry)