COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL AMENDING Directive 2003/87/EC to continue current limitations of scope for aviation activities and to prepare to implement a global market-based measure from 2021
Date: 2017-02-03
Institutions: Directorate-General for Climate Action, European Commission
Subjects: EU Emissions Trading Scheme, EU emission allowance, air transport, greenhouse gas, international transport, pollution control measures, reduction of gas emissions

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   EUROPEAN COMMISSION  Brussels, 3.2.2017  SWD(2017) 30 final   COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT  Accompanying the document PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL AMENDING Directive 2003/87/EC to continue current limitations of scope for aviation activities and to prepare to implement a global market-based measure from 2021 {COM(2017) 54 final} {SWD(2017) 31 final}  
 
 
Executive Summary Sheet 

Impact  assessment  on  a  Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending 
Directive 2003/87/EC to continue current limitations of scope for aviation activities and to prepare to implement 
a global market-based measure from 2021.  

A. Need for action 

Why? What is the problem being addressed? Maximum 11 lines 
Agreement was reached in 2016 on a global measure (GMBM) to address international aviation emissions from 
2021. EU legislation must be amended to take account thereof. Without any amendments, the EU ETS will cover 
flights between the EU and third countries as of 2017, in addition to the currenly covered intra-EEA flights. 

What is this initiative expected to achieve? Maximum 8 lines 
The environmental ambition of the EU ETS must be maintained to meet the EU's domestic climate targets and 
international  commitments,  while  supporting  the  GMBM's  implementation  to  maximise  the  global  mitigation 
impact. 

What is the value added of action at the EU level? Maximum 7 lines  
The  single  market  in  aviation  is  a  key  goal  for  the  EU.  EU  action  prevents  the  distortion  of  competition  in  the 
internal market by ensuring a uniform implementation of the GMBM in the EU.  

B. Solutions 

What  legislative  and  non-legislative  policy  options  have  been  considered?  Is  there  a  preferred 
choice or not? Why? Maximum 14 lines  
The 2017-2020 options maintain the EU ETS with different scopes: full scope (option 0), departing EEA flights 
(option 2) and the current intra-EEA scope (option 1).  
Post-2020, the baseline option 0 remains full scope. Under the other options, all extra-EEA flights are exclusively 
covered by the GMBM. Under option 1, the EU ETS applies to intra-EEA flights. Under option 2, the EU ETS for 
intra-EEA flights is aligned with the GMBM. Under option 3, the GMBM is applied to intra-EEA.  
The  preferred  option  is  to  extend  the  intra-EEA  scope  (option  1)  until  there  will  be  sufficient  clarity  about  the 
instruments adopted by ICAO for the implementation of the GMBM. 

Who supports which option? Maximum 7 lines  
2017-2020:  Civil  society  organisations  and  individuals  prefer  option  0  and  public  authorities  option  1.  Private 
enterprises, professional organisations and international organisations are split between option 1 and a repeal of 
the EU ETS.  
Post-2020:  Civil  society  organisations  and  individuals  support  the  continuation  of  the  EU  ETS  (options  0-2). 
Some public authorities sustain the continuation of the EU ETS for intra-EEA flights (options 1 and 2), whereas 
others, as well as airlines and aviation associations prefer option 3.  

C. Impacts of the preferred option 

What are the benefits of the preferred option (if any, otherwise main ones)? Maximum 12 lines                                       
Aviation  continues  to  contribute  to  the  EU's  climate  targets.  The  option  is  expected  to  result  in  an  annual 
demand  for  25.10  Mt  of  other  ETS  sectors'  emission  allowances  and  international  credits  in  2020  and  in  an 
annual  demand  for  49.3  Mt  EU  allowances  that  were  originally  attributed  to  other  ETS  sectors  in  2030. 
Compared to the baseline, the preferred option has lower operating costs (-0.1% in 2020 and -0.43% in 2030), 
resulting in an increase in demand for flights (increase by 0.5% in 2020 and by 1.44% in 2030). Employment in 
the aviation sector is also likely to grow by 0.4% in 2020 and by 1.5% in 2030.  

What are the costs of the preferred option (if any, otherwise main ones)? Maximum 12 lines                                       
The low allowance costs result in few additional operating costs with a negligible impact on the competiveness of 
the EU's aviation and tourism sector. 
All options generate administrative costs for aviation operators and national authorities. They are likely to be the 
lowest  under  the  preferred  option  but  are  difficult  to  quantify  for  the  post  2020  period  due  to  the  uncertainty 
around the administrative rules applicable to the GMBM.  

How will businesses, SMEs and micro-enterprises be affected? Maximum 8 lines 
Under  the  EU  ETS,  ~2600  non-commercial  small  emitters  are  responsible  for  1  %  of  emissions.  Previous 
amendments  to  the  EU  ETS  exempted  small,  non-commercial  aircraft  operators  up  to  2020.  It  is  proposed  to 

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extend the exemption to contain the administrative burdern and costs. 

Will there be significant impacts on national budgets and administrations? Maximum 4 lines 
Auction revenues are generated for public authorities (annual auctioning revenues of €123.6 million in 2020 and 
of €302.3 million in 2030).  

Will there be other significant impacts? Max 6 lines  
The risks associated with third countries' opposition and non-compliance are reduced, due to the limited scope. 

D. Follow up 

When will the policy be reviewed? Maximum 4 lines  
When there will be further clarity on the outstanding features of the GMBM and its implementation. 

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