# EUR-Lex - 52012PC0697 - EN

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# 52012PC0697

**Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL derogating temporarily from Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community /* COM/2012/0697 final - 2012/0328 (COD) */**

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EXPLANATORY MEMORANDUM

At the International Civil Aviation
Organisation (ICAO) Council's meeting of 9 November 2012, significant progress
was made towards the goal of the global regulation of aviation emissions.

This proposal for a Decision is intended to
reinforce this positive momentum, and to enhance the chances of a successful
outcome of the 2013 ICAO Assembly in terms of developing a global market-based
measure (MBM) and adopting a framework facilitating States' application of
market-based measures to international aviation.

The Decision would "stop the
clock," by temporarily deferring enforcement of the obligations of
aircraft operators in respect of incoming and outgoing flights under the
European Union's Emission Trading System (ETS). This proposal thus demonstrates
the EU's strong political commitment to facilitate and drive forward the
successful conclusion of these ICAO processes.

The Decision derogating temporarily from
the ETS Directive is designed to ensure that action is not taken against
aircraft operators which do not meet the Directive's reporting and compliance
obligations arising before 1 January 2014 in respect of incoming and outgoing
flights. The condition for this is that they have either not received, or have
returned, 2012 free allocations granted for such activities to or from
aerodromes outside the EU and closely connected areas with a shared commitment
to tackle climate change. Proper monitoring, reporting and verification of
emissions from such flights is welcomed, but no compliance sanctions will be
applied in respect of the non-reporting of such emissions.

The Directive continues to apply in full in
respect of flights between aerodromes in the EU and closely connected areas
with a shared commitment to tackle climate change. Consequently, all aircraft
operators which have performed aviation activities falling within the Directive
between such aerodromes in 2011 and in 2012 are required to comply with
monitoring, reporting and verification requirements. By 30 April 2013, all aircraft
operators which operated such flights in 2012 are required to surrender
allowances or international credits in respect of emissions from those flights.

This Decision gives space for progress to
be made at the ICAO Assembly that takes place in September 2013. If clear and
sufficient progress is made at the ICAO Assembly, the Commission will propose
appropriate further legislative action. Article 25a of the Directive would
enable amendments to be made to the aviation activities covered for requirements
arising after 1 January 2014. Aircraft operators which intend to operate
flights to and from aerodromes in the EU should be aware that, in the absence
of such modifications, they are responsible for emissions from flights to and
from those aerodromes from 2013 onwards. The free allocations made by February
2013 in respect of 2013 emissions are also subject to potential modification in
the event that measures are adopted pursuant to Article 25a.

Other obligations in respect of such
flights remain unaffected, and the percentage of auctioning remains at 15% as
laid down in the Directive. Consequently, a lower quantity of aviation
allowances will be auctioned for 2012, reflecting the proportionately lower
number of total allowances in circulation.

To provide further momentum to the
international discussions and continue EU leadership in this process, it is
important that this proposal is agreed between the European Parliament and
Council swiftly and ideally by March 2013. The Commission confirms that pending
completion of the legislative process, aircraft operators which have either not
received free allocations for 2012, or have returned, such free allocations to
the appropriate account, should not expect the Commission to require enforcement
activities to be taken against them by Member States in respect of emissions
from flights to or from aerodromes outside the EU and closely connected areas.

2012/0328 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

derogating temporarily from Directive
2003/87/EC of the European Parliament and of the Council establishing a scheme
for greenhouse gas emission allowance trading within the Community

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 192(1) thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee,

Having regard to the opinion of the
Committee of the Regions,

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       Significant progress has
been made in the International Civil Aviation Organisation towards the adoption
at the 2013 ICAO Assembly of a framework facilitating States' application of
market-based measures to emissions from international aviation, and on
developing a global market-based measure.

(2)       In order to facilitate
this progress and provide momentum, it is desirable to defer enforcement of
requirements relating to flights to and from aerodromes outside of the Union
and areas with close economic connections to the Union and a shared commitment
to tackle climate change[1]
arising prior to the 2013 ICAO Assembly. Action should therefore not be taken
against aircraft operators in respect of requirements resulting from Directive
2003/87/EC of the European Parliament and of the Council of 13 October 2003
establishing a scheme for greenhouse gas emission allowance trading within the
Community[2]
arising before 1 January 2014 for reporting verified emissions and for the
corresponding surrender of allowances from incoming and outgoing flights to and
from such aerodromes. Aircraft operators who wish to continue to comply with
those requirements should be able to do so.

(3)       In order to avoid
distortions of competition, this derogation should only apply in respect of
aircraft operators that have either not received or have returned all free
allocations which have been allocated in respect of such activities in 2012.
For the same reason, these allowances should not be taken into account for the
purposes of calculating entitlements to use international credits within the
framework of Directive 2003/87/EC.

(4)       Allowances that are not
issued to such operators or are returned should be cancelled. The number of
aviation allowances that are auctioned will respect Article 3d(1) of Directive
2003/87/EC,

HAVE ADOPTED THIS DECISION:

Article 1

By way of derogation from Article 16 of
Directive 2003/87/EC, Member States shall take no action against aircraft
operators in respect of requirements set out in Article 12(2a) and Article
14(3) of Directive 2003/87/EC arising before 1 January 2014 in respect of
activity to or from aerodromes in countries outside the European Union that are
not members of EFTA, dependencies and territories of EEA Member States or
countries having signed a Treaty of Accession with the Union, where such
aircraft operators have not been issued free allocations for such activity in
respect of 2012 or, if they have been issued such allowances, have returned a
corresponding number of allowances to Member States for cancellation.

Article 2

The Member States shall cancel all 2012 allowances
in respect of flights to or from aerodromes referred to in Article 1 that have
either not been issued or, if issued, have been returned to them.

Article 3

Allowances cancelled pursuant to Article 2
shall not be taken into account for the purposes of calculating entitlements to
use international credits within the framework of Directive 2003/87/EC.

Article 4

This Decision is addressed to the Member
States.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

[1]               Including EFTA States, countries which have signed a
Treaty of Accession with the Union and the dependencies and territories of EEA
Member States

[2]               OJ L 275, 25.10.2003, p.32.