Proposal for a COUNCIL DECISION on the position to be adopted, on behalf of the European Union, in respect of an international instrument to be elaborated by the ICAO bodies and intended to lead to the implementation from 2020 of a single global market-based measure addressing emissions from international aviation
Date: 2016-04-08
Institutions: Directorate-General for Mobility and Transport, European Commission
Subjects: International Civil Aviation Organisation, air quality, air transport, emission trading, greenhouse gas, international instrument, international transport, pollution control, reduction of gas emissions, tradeable emission permit

EUROPEAN 
COMMISSION 

Brussels, 8.4.2016  
COM(2016) 183 final 

2016/0094 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be adopted, on behalf of the European Union, in respect of an 
international instrument to be elaborated by the ICAO bodies and intended to lead to  
the implementation from 2020 of a single global market-based measure addressing 
emissions from international aviation 

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EXPLANATORY MEMORANDUM 

1.  CONTEXT OF THE PROPOSAL 

•  Reasons for and objectives of the proposal 

The  21th  Conference  of  the  Parties  to  the  UN  Convention  on  Climate  change  successfully 
adopted  the  Paris  Agreement  whose  objective  is  to  limit  global  temperature  increase  well 
below  2°C  compared  to  pre-industrial  levels,  and  to  pursue  efforts  to  limit  temperature 
increase to 1.5°. By 2050, global greenhouse gas emissions should be reduced by at least 50% 
below  their  1990  levels.  All  sectors  of  the  economy  should  contribute  to  achieving  these 
emission reductions, including international aviation. 

Greenhouse  gas  emissions  from  international  aviation  represent  more  than  2%  of  global 
emissions  and  are  growing  exponentially,  with  projections  for  2050  indicating  that,  under  a 
'business as usual' scenario, such emissions from aviation activities could grow above 200% 
compared to current levels. The Commission Communication to the European Parliament and 
the Council on 'The Paris Protocol – A blueprint for tackling global climate change beyond 
2020'1  underlines  that  ICAO  should  act  to  effectively  regulate  emissions  from  international 
aviation  before  the  end  of  2016.  Despite  the  technological  improvements,  the  potential  for 
reduction of the overall emissions is limited in the aviation sector and market-based measures 
have therefore been recognised as a suitable measure to allow aviation to contribute to  overall 
emission  reductions.  At  the  38th  Session  of  the  ICAO  Assembly  (2013),  it  was  decided  to 
develop  a  single  global  market-based  measure  addressing  international  aviation  emissions 
with  a  view  to  taking  a  decision  by  the  39th  Session  of  the  ICAO  Assembly  in  2016  (27th 
September to 7th October) for the implementation of the scheme from 20202.  

It  is  therefore  necessary  to  adopt,  as  soon  as  possible  and  well  ahead  of  the  next  ICAO 
Assembly,  the  position  that  Member  States,  acting  jointly  in  the  interest  of  the  EU,  should 
abide by with regard to the decision to be taken by ICAO.  

The  position  taken  by  the  Union  shall  be  expressed  by  the  Commission  and  the  Member 
States  in  ICAO  bodies.  The  development  of  a  proposal  for  such  a  instrument  involves 
multiple  ICAO  bodies,  including  the  ICAO  Council.  It  is  also  necessary  to  adopt  an  EU 
position to ensure consistency with existing EU law. 

•  Consistency with existing policy provisions in the policy area 

Decision 1600/2002/EC of the European Parliament and of the Council called for the Union 
to identify and undertake specific actions to reduce greenhouse gas emissions from aviation if 
no such action were agreed within ICAO by 2002. Following a decision by the 33rd Session of 
the  ICAO  Assembly  (2001)  to  endorse  an  open  emissions  trading  system  for  international 
aviation3 and by the 35th Session of  the ICAO Assembly (2004) to develop guidance on the 
incorporation  of  emissions  from  international  aviation  into  ICAO  Contracting  States' 

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COM(2015)81, 4 March 2015 
ICAO Resolution A38-18 (2013) 
ICAO Resolution A33-7 (2001) 

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emissions  trading  schemes4,  the  European  Parliament  and  the  Council  adopted  Directive 
2008/101/EC which amended Directive 2003/87/EC establishing a system for greenhouse gas 
emission allowance trading so as to include aviation activities.5 
In  addition  to  deciding  to  develop  a  global  market-based  measure,  the  38th  Session  of  the 
ICAO  Assembly  (2013)  resolved  that  ICAO  and  its  member  States,  with  relevant 
organisations,  would  work  together  to  strive  to  achieve  a  collective  medium  term  global 
aspirational goal of keeping the global net carbon emissions from international aviation from 
2020 at the same level. International aviation emissions are projected to be around 70% higher 
in 2020 than in 20056 and the Union and its Member States have consistently advocated that 
the global reduction target for greenhouse gas emissions from international aviation should be 
a  10%  reduction  by  2020  compared  to  2005  levels.  However,  it  appears  expedient  for  the 
Union to seize the opportunity to promote the development, within a rather short time frame, 
of  a  global  market-based  measure  to  limit  greenhouse  gas  emissions  from  international 
aviation to their levels in 2020, bearing in mind the possibility to review the targets over time, 
as appropriate. 
In  order  to  facilitate  progress  at  the  39th  Session  of  the  ICAO  Assembly  (2016)  towards  an 
appropriate instrument, the Union legislators decided to temporarily consider the requirements 
of  Directive  2003/87/EC  to  be  satisfied  in  respect  of  flights  to  and  from  aerodromes  in 
countries  outside  the  European  Economic  Area  (EEA)7.  Following  the  39th  Session  of  the 
ICAO Assembly (2016)  the  Commission  shall  report to the European Parliament and to  the 
Council  on  actions  to  implement  an  international  instrument  on  a  global  market-based 
measure from 2020 that will reduce greenhouse gas emissions from international aviation in a 
non-discriminatory manner. In this report, the Commission shall consider, and, if appropriate, 
include proposals in reaction to, those developments on the appropriate scope for coverage of 
emissions from activity to and from aerodromes located in countries outside the EEA from 1 
January 2017 onwards.  

•  Consistency with other Union policies 

The proposed Decision is consistent with and complements other policies of the Union, notably 
energy, environmental and transport policies8. 

 A global clean energy transition will require changes in business and investment behaviour and 
incentives across the entire policy spectrum. 

2.  LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

•  Legal basis 

The proposal is made under Article 192(1), together with Article 218(9) TFEU.  

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ICAO Resolution A35-5 (2004) 
OJ L 275, 25.10.2003, p. 32. 
See reservations to the 2013 ICAO Resolution, under footnote 4 above 
Regulation 421/2014 of the European Parliament and of the Council 
COM(2016) 110 final 

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Article  218(9)  TFEU  lays  down  the  procedure  for  the  establishment  of  positions  on  the 
Union's behalf in a body set up by an agreement, when that body is called upon to adopt acts 
having legal effects.  

In this case, the act expected to be adopted by the ICAO Assembly will have the legal effects 
indicated in Article 28a of Directive 2003/87/EC. 

In accordance with Article 192(1) and 191 TFEU, the European Union shall contribute to the 
pursuit,  inter  alia,  of  the  following  objectives:  preserving,  protecting  and  improving  the 
quality of the environment; promoting measures at international level to deal with regional or 
worldwide environmental problems, and in particular combating climate change. 

•  Choice of the instrument 

Article 218(9) TFEU provides for a Council Decision as the applicable instrument. 

3.  RESULTS  OF  EX-POST  EVALUATIONS,  STAKEHOLDER  CONSULTATIONS 

AND IMPACT ASSESSMENTS 

Not applicable 

4.  BUDGETARY IMPLICATIONS 

The proposal has no implication for the European Union budget. 

5.  OTHER ELEMENTS 

Not applicable. 

2016/0094 (NLE) 

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Proposal for a 

COUNCIL DECISION 

on the position to be adopted, on behalf of the European Union, in respect of an 
international instrument to be elaborated by the ICAO bodies and intended to lead to  
the implementation from 2020 of a single global market-based measure addressing 
emissions from international aviation 

 THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 192(1), in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

Greenhouse  gas  emissions  from  international  aviation  represent  more  than  2%  of 
global emissions and are growing exponentially, with projections for 2050 indicating 
that, under a 'business as usual' scenario, such emissions from aviation activities could 
grow  above  200%  compared  to  current  levels.  By  2050,  global  greenhouse  gas 
emissions should be reduced by at least 50% below their 1990 levels. All sectors of the 
economy  should  contribute  to  achieving  these  emission  reductions,  including 
international aviation. 

The  21st  Conference  of  the  Parties  to  the  UN  Convention  on  Climate  change  was 
successfully  concluded  in  December  2015  by  the  adoption  of  the  Paris  Agreement 
whose  objective  is  to  limit  global  temperature  increase  well  below  2°C  compared  to 
pre-industrial levels, and to pursue efforts to limit temperature increase to 1,5°.    

The  International  Civil  Aviation  Organisation  (ICAO)  was  established  by  the  1944 
Chicago  Convention  on  International  Civil  Aviation.  All  Member  States  are 
Contracting Parties to that Convention and members of the ICAO, while the Union has 
Observer  status  in  certain  ICAO  meetings,  including  the  triennial  ICAO  Assembly. 
The  Union  and  all  its  Member  States  are  Parties  to  the  1997  Kyoto  Protocol,  which 
requires them to pursue limitation of emissions of greenhouse gases from international 
aviation  through  ICAO.  Decision  1600/2002/EC  of  the  European  Parliament  and  of 
the Council called for the Union to identify and undertake specific actions to reduce 
greenhouse gas emissions from aviation if no such action were agreed within ICAO by 
2002. 

(3) 

The 33nd Session of the ICAO Assembly (2001) endorsed an open emissions trading 
system for international  aviation9.  The  ICAO  Committee  on  Aviation Environmental 
Protection  recommended  in  2004  that  an  aviation-specific  emissions  trading  system 

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ICAO Resolution A33-7 

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based on a new legal instrument under ICAO auspices should not be pursued further. 
The 35th Session of the ICAO Assembly (2004) endorsed open emissions trading and 
the possibility for States to incoporate emissions from international aviation into their 
emissions trading schemes10, but the 36th Session of the ICAO Assembly (2007) urged 
exemption of aircraft operators based in other States unless it were bilaterally agreed11. 
The  Union,  its  Member  States  and  other  European  States  have  consistently  reserved 
the right to apply market-based measures (MBMs) on a non-discriminatory basis to all 
aircraft operators providing services to, from or within their territory, recalling that the 
Chicago Convention recognises Parties' rights to apply its own air laws and regulations 
to the aircraft of all States on a non-discriminatory basis12 providing services to, from 
or within their territory. 

Considering  that  the  limitation  of  greenhouse  gas  emissions  from  aviation  is  an 
essential  contribution  in  line  with  overall  emission  reduction  commitments,  the 
European  Parliament  and  the  Council  adopted  Directive  2008/101/EC13  which 
amended Directive 2003/87/EC of the European Parliament and of the Council of 13 
October 2003 establishing a system for greenhouse gas emission allowance trading so 
as to include aviation activities and amending Council Directive 96/61/EC14. The fifth 
recital of Directive 2008/101/EC states that the EU should seek to ensure that such a 
global agreement intended to contain global temparature increase includes measures to 
reduce  greenhouse  gas  emissions  from  international  aviation  and,  in  this  event,  the 
Commission should consider which amendments to Directive 2003/87/EC as it applies 
to aircraft operators are necessary. 

The Commission Communication to the European Parliament and the Council on 'The 
Paris  Protocol  –  A  blueprint  for  tackling  global  climate  change  beyond  2020'15 
underlines  that  the  International  Civil  Aviation  Organisation  (ICAO),  should  act  to 
effectively regulate emissions from international aviation before the end of 2016. The 
next meeting of the ICAO Assembly will take place in 2016, and should agree on an 
international instrument that will lead to the implementation by 2020 of a single global 
market-based measure to international aviation emissions. 
The 38th  Session  of  the  ICAO  Assembly  (2013)  resolved that ICAO and its member 
States,  with  relevant  organisations,  would  work  together  to  strive  to  achieve  a 
collective  medium  term  global  aspirational  goal  of  keeping  the  global  net  carbon 
emissions from international aviation from 2020 at the same level ('the ICAO goal"), 
and decided to develop a global market based measure for international aviation and to 
report  the  results  of  its  work  for  decision  at  39th  Session  of  the  ICAO  Assembly 
(2016). International aviation emissions are projected to be around 70% higher in 2020 
than in 200516 and the Union and its Member States have consistently advocated that 
the  global  reduction  target  for  greenhouse  gas  emissions  from  international  aviation 

ICAO Resolution A35-5 
Appendix L to Resolution A36-22 
Reservations to the 2007 ICAO Resolution, 2010 ICAO Resolution, 2012 ICAO Council Decision 
endorsing the 'Delhi Declaration and 2013 ICAO Resolution, see 
http://ec.europa.eu/clima/policies/transport/aviation/documentation_en.htm  
OJ L 8, 13.1.2009, p. 3 
OJ L 275, 25.10.2003, p. 32 
COM(2015)81, 4 March 2015 
See reservations to the 2013 ICAO Resolution, under footnote 4 above 

(4) 

(5) 

(6) 

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(7) 

(8) 

should  be  a  10%  reduction  by  2020  compared  to  2005  levels.  However,  it  appears 
expedient for the Union to seize the opportunity to promote the development, within a 
rather  short  time  frame,  of  a  global  market-based  measure  to  limit  greenhouse  gas 
emissions  from  international  aviation  to  their  levels  in  2020,  bearing  in  mind  the 
review of the objective over time, as appropriate.  

In  order  to  facilitate  progress  at  the  2016  ICAO  Assembly  towards  an  appropriate 
instrument,  Union  legislator  decided  to  temporarily  consider  the  requirements  of 
Directive  2003/87/EC  to  be  satisfied  in  respect  of  flights  to  and  from  aerodromes  in 
countries  outside  the  European  Economic  Area  (EEA).  In  doing  so,  the  Union 
emphasised  that  legal  requirements  can  be  applied  in  respect  of  flights  to  and  from 
aerodromes in EEA States, in the same manner as legal requirements can be applied in 
respect of the emissions from flights between such aerodromes17. 

Directive  2003/87/EC  as  amended  sets  out  certain  obligations  incumbent  upon  the 
Commission  following  the  39th  Session  of  the  ICAO  Assembly  (2016).  The 
Commission shall report to the European Parliament and to the Council on actions to 
implement  an  international  instrument  on  a  global  market-based  measure  from  2020 
that  will  reduce  greenhouse  gas  emissions  from  international  aviation  in  a  non-
discriminatory  manner.  In  this  report,  the  Commission  shall  consider,  and,  if 
appropriate,  include  proposals  in  reaction  to,  those  developments  on  the  appropriate 
scope  for  coverage  of  emissions  from  activity  to  and  from  aerodromes  located  in 
countries outside the EEA from 1 January 2017 onwards. 

(9) 

The position of the Union to be taken with regard to the international instrument to be 
developed in ICAO that will lead to the implementation from 2020 of a single global 
market-based measure to international aviation emissions should be established. 

(10) 

It is necessary to adopt a Union position well ahead of the next ICAO Assembly, 

HAS ADOPTED THIS DECISION:  

Article 1 

The position to be taken on behalf of the European Union leading to an instrument on a global 
market based measure at ICAO, shall be in accordance with the Annex to this Decision and 
shall be expressed by the Commission and the Member States acting jointly, in the interest of 
the Union, in the bodies of ICAO. 

The  Commission  shall  keep  the  relevant  Council  bodies  fully  informed  about  the  on-going 
discussions. In order for the Commission to be fully appraised of the Council's views on the 
proper  application  of  the  terms  of  the  annex,  the  Commission  shall  consult  those  bodies 

Article 2 

17 

Regulation  421/2014  of  the  European  Parliament  and  of  the  Council  of  16  April  2014  amending 
Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the 
Community,  in  view  of  the  implementation  by  2020  of  an  international  agreement  applying  a  single 
global market-based measure to international aviation emissions, OJ L 129, 30.4.2014, p. 1. 

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throughout the process, whenever this is necessary, in view of the developments in the ICAO 
bodies. 

Done at Brussels, 

For the Council 
The President 

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