Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2003/87/EC as regards the notification of offsetting in respect of a global market-based measure for aircraft operators based in the Union
Date: 2021-07-14
Institutions: Directorate-General for Climate Action, European Commission
Subjects: air transport, carbon, emission allowance, environmental protection, greenhouse gas, international standard, international transport, pollution control measures, reduction of gas emissions, tradeable emission permit

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 14.7.2021  COM(2021) 567 final 2021/0204 (COD)  Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2003/87/EC as regards the notification of offsetting in respect of a global market-based measure for aircraft operators based in the Union  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

This proposal introduces an amendment to aviation rules in the Emissions Trading System of 
the European Union (EU ETS) to implement Member States’ notification to EU-based airlines 
of  the  offsetting  for  the  year  2021  under  the  Carbon  Offsetting  and  Reduction  Scheme  for 
International Aviation (CORSIA) of the International Civil Aviation Organisation (ICAO). 

The objective is to implement this notification in a manner that minimises the administrative 
burden  of  national  authorities  and  airline  operators,  and  provides  legal  certainty  as  regards 
CORSIA offsetting by airlines based in Member States. 

ICAO’s  CORSIA  is  an  offsetting  mechanism  where  countries  should  have  airlines  based  in 
those countries offset CO2 emissions that exceed the relevant baseline by international credits. 
Due to the COVID-19 pandemic, the ICAO Council decided in June 2020 that 2019 emissions 
should be used as baseline in 2021-2023 instead of the average of 2019-2020 emissions1. The 
CORSIA  review  in  2022  will  examine  the  impact  of  COVID-19  on  CORSIA  on  various 
issues. 

Subject to the differences notified in 20182 and the manner in which the European Parliament 
and Council amend Union legislation, the EU intends to implement CORSIA. Therefore, EU-
based  airlines  should  surrender  credits  if  relevant  to  comply  with  CORSIA  offsetting  in 
respect  of  their  2021  emissions.  As  foreseen  in  the  CORSIA  standards  and  recommended 
practices, EU Member States should calculate and inform airlines of their offsetting in respect 
of  2021  emissions  by  30  November  2022;  thereafter,  those  airlines  should  cancel  the 
according number of credits by 31 January 2025. 

Due  to  the  COVID-19  pandemic,  aviation  ETS  CO2  emissions  decreased  in  2020  by  64% 
compared  to  20193.    In  November  2020,  the  European  Organisation  for  the  Safety  of  Air 
Navigation  (Eurocontrol)  published  its  forecast  for  the  recovery  of  the  European  aviation 
sector  for  the  years  2020-20244.  It  describes  the  impact  of  the  COVID-19  pandemic  on  air 
traffic.  According  to  the  forecast,  even  in  the  most  optimistic  scenario,  the  2019  emission 
levels  would  not  be  reached  before  2024,  whereas  the  worst-case  scenario  predicts  such 
recovery by 2029. 

While estimates do not foresee any actual CORSIA offsetting requirements during the period 
2021-2023, there should nonetheless be a legal obligation in Union law for Member States to 
notify  the  offsetting  figures  to  EU-based  airlines  by  30  November  2022  in  respect  of 

1 
2 

3 
4 

https://www.icao.int/environmental-protection/CORSIA/Pages/CORSIA-and-Covid-19.aspx  
Council Decision (EU) 2018/2027 of 29 November 2018 on the position to be taken on behalf of the 
European Union within the International Civil Aviation Organization in respect of the First Edition of 
the  International  Standards  and  Recommended  Practices  on  Environmental  Protection  —  Carbon 
Offsetting and Reduction Scheme for International Aviation (CORSIA)(OJ L 325, 20.12.2018, p. 25). 
https://ec.europa.eu/clima/news/emissions-trading-greenhouse-gas-emissions-reduced-2020_en  
https://www.eurocontrol.int/publication/eurocontrol-five-year-forecast-2020-2024  

EN 

1 

  EN 

                                                 
emissions during 2021. Based on the above factual evidence about 2020 and the first half of 
2021, the likelihood for any actual CORSIA offsetting requirements materialising in respect 
of 2021 is minimal, and is also very low in respect of 2022. Therefore, this proposal foresees 
that once it is clear what the additional offsetting figure in respect of the year 2021 is, most 
likely:  zero,  Member  States  shall,  during  the  course  of  2022,  communicate  this  to  airlines. 
This proposal should be adopted by Council and the European Parliament once the emissions 
data for 2021 will be known, that is after 1 January 2022. 

The same approach will be taken in respect of subsequent years in the event that the relevant 
‘Fit for 55’ proposals are not yet adopted. 

EU-based  airlines’  ETS  obligations  remain  in  force  as  in  Union  law  pursuant  to  Directive 
2003/87/EC. These  obligations  include  the  obligation to monitor and report their  emissions, 
including those relating to flights between the EEA and third countries.  

• 

Consistency with existing policy provisions in the policy area 

Revision of aviation ETS rules is an integral part of EU’s “Fit for 55” package. The revision 
includes implementation of CORSIA through the EU ETS Directive.  

This  proposal  is  the  only  CORSIA-related  amendment  that  should  be  in  place  by 
30 November 2022, so that the notification of zero additional offsetting can take place by that 
date.  

Other amendments  related to  CORSIA implementation  include provisions regarding  the use 
of  international  credits  for  extra-EEA  flights;  surrender  obligations  for  extra-EEA  flights; 
treatment of non-EU-based airlines for extra-European flights; treatment of EU-based airlines 
on routes where CORSIA is not applied in the same way; and Directive’s coverage to flights 
of  EU  airlines  between  two  third  countries.  These  other  amendments  related  to  CORSIA 
implementation  are  included  in  a  wider  proposal  for  a  Directive  to  amend  Directive 
2003/87/EC  as  regards  aviation's  contribution  to  the  Union’s  economy-wide  emission 
reduction target and appropriately implementing a global market-based measure.  

• 

Consistency with other Union policies 

This very specific proposal does not raise any issue of consistency with other Union policies. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  for  this  proposal  is  Article  192  TFEU.  In  accordance  with  Article  191  and 
192(1) 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. 

• 

Subsidiarity (for non-exclusive competence)  

Climate change is a trans-boundary problem and EU action can effectively complement and 
reinforce regional, national and local action. Coordination of climate action should be taken at 
European level and, where possible, effective action should be facilitated at global level. EU 
action  is  justified  on  grounds  of  subsidiarity  as  set  out  in  Article  5  of  the  Treaty  of  the 

EN 

2 

  EN 

European Union. Since 1992, the European Union has worked to develop joint solutions and 
drive  forward  global  action  to  tackle  climate  change.  More  specifically,  action  at  EU  level 
will  provide  for  cost  effective  delivery  of  the  2030  and  long-term  emission  reduction 
objectives  while  ensuring  fairness  and  environmental  integrity.  Articles  191  to  193  of  the 
TFEU confirm and specify EU competencies in the area of climate change.  

• 

Proportionality 

This proposal complies with the proportionality principle because it does not go beyond what 
is necessary in order to achieve the objectives of implementing the EU's target for reducing 
greenhouse  gas  emissions  in  a  cost-effective  manner,  while  ensuring  fairness  and 
environmental integrity.   

Choice of the instrument 

• 
A Decision of the Parliament and the Council through the ordinary legislative procedure5 is 
considered  to  be  the  appropriate  instrument  to  amend  the  ETS  Directive,  as  the  actions 
required are to be undertaken by Member States. This choice is in line with the precedents of 
three  previous  ETS-related  Decisions  (the  ‘backloading’  Decision6,  the  Market  Stability 
Reserve Decision7 and the first ETS ‘stop the clock’ Decision8). 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

There was  no  ex-post evaluation  or fitness check related to  these proposals  due  to  the early 
stage of implementation of existing legislation and, consequently, the limited data availability. 

• 

Stakeholder consultations 

Stakeholders were consulted regarding policy options to implement CORSIA through the EU 
ETS as appropriate. The inception impact assessment on updated rules for aviation ETS was 
published on 3 July 2020 with a feedback period lasting until 28 August 2020, and the open 
public consultation was conducted through an online survey between 1 October 2020 and 14 
January  2021. The  results  of  stakeholder  consultations  are  summarised  in  an  annex  to  the 
impact assessment accompanying the proposal for a Directive to amend Directive 2003/87/EC 
as regards aviation's contribution to the Union’s economy-wide emission reduction target and 
appropriately implementing a global market-based measure9. 

• 

Impact assessment 

The subject matter of this proposal pertains to notification by Member States of offsetting and 
has no environmental or economic impacts compared to the current situation. 

Unlike  acts  directed  only  at  positions  in  international  bodies  under  Article  218(9)  of  the  Treaty,  that 

5 
only involved Council, e.g. the Council Decision notifying differences to ICAO. 
6 

Decision  No  1359/2013/EU  amending  Directive  2003/87/EC  clarifying  provisions  on  the  timing  of 
auctions of greenhouse gas allowances (OJ L 343, 19.12.2013, p. 1). 
Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for 
the  Union  greenhouse  gas  emission  trading  scheme  and  amending  Directive  2003/87/EC  (OJ  L  264, 
9.10.2015, p. 1–5). 
Decision  377/2013/EU  derogating  temporarily  from  Directive  2003/87/EC  establishing  a  scheme  for 
greenhouse gas emission allowance trading within the Community (OJ L 113, 25.4.2013, p. 1–4). 
SWD [reference to be added] 

7 

8 

9 

EN 

3 

  EN 

                                                 
Policy options for CORSIA implementation and increased aviation auctioning were assessed 
in  the  impact  assessment  accompanying  the  proposal  for  a  Directive  to  amend  Directive 
2003/87/EC  as  regards  aviation's  contribution  to  the  Union’s  economy-wide  emission 
reduction target and appropriately implementing a global market-based measure10. 

• 

Fundamental rights 

The  proposal  respects  the  fundamental  rights  and  observes  the  principles  recognised  in 
particular  by  the  Charter  of  Fundamental  Rights  of  the  European  Union.  In  particular,  it 
contributes to the objective of a high level of environmental protection in accordance with the 
principle of sustainable development as laid down in Article 37 of the Charter of Fundamental 
Rights of the European Union11. 

4. 

BUDGETARY IMPLICATIONS 

There are no budgetary implications of this proposal. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

National  authorities  and  aircraft  operators  can  use  the  existing  infrastructure  regarding 
monitoring  and  reporting  of  aircraft  operators’  emissions.  As  there  are  no  transactions 
foreseen, no registry arrangements are required. 

• 

Detailed explanation of the specific provisions of the proposal 

A new paragraph is added to Article 12 of Directive 2003/87/EC that places a legal obligation 
for  Member  States’  national  authorities  to  notify  [most  probably:  zero]  additional  offsetting 
for EU-based aircraft operators in respect of their 2021 emissions.  

The aircraft operators that shall be notified are the aircraft operators referred to in Article 1 of 
Commission  Delegated  Regulation  2019/1603,  implementing  CORSIA  as  appropriate  in 
respect of monitoring and reporting of emissions. 

10 
11 

SWD [reference to be added] 
OJ C 326, 26.10.2012, p. 391. 

EN 

4 

  EN 

                                                 
2021/0204 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Directive 2003/87/EC as regards the notification of offsetting in respect of a 
global market-based measure for aircraft operators based in the Union 

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 Committee1, 
Having regard to the opinion of the Committee of the Regions2, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

1 
2 
3 

4 

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) of 
the  International  Civil  Aviation  Organization  (ICAO)  is  in  operation  since  2019  as 
regards the monitoring, reporting and verification of emissions and is intended to be a 
globally-applied market-based measure aiming to offset international  aviation carbon 
dioxide  emissions  since  1  January  2021  above  a  fixed  emissions  level  with  certain 
offset credits. 

Subject to the differences between the EU legislation and CORSIA, notified to ICAO 
following Council Decision (EU) 2018/20273, and the manner in which the European 
Parliament  and  Council  amend  Union  legislation,  the  Union  intends  to  implement 
CORSIA.  
Commission  Delegated  Regulation  (EU)  2019/16034  was  adopted  to  appropriately 
implement the rules of CORSIA for monitoring, reporting and verification of aviation 
emissions.  The  offsetting  within  the  meaning  of  the  International  Standards  and 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
Council Decision (EU) 2018/2027 of 29 November 2018 on the position to be taken on behalf of the 
European Union within the International Civil Aviation Organization in respect of the First Edition of 
the  International  Standards  and  Recommended  Practices  on  Environmental  Protection  —  Carbon 
Offsetting and Reduction Scheme for International Aviation (CORSIA)(OJ L 325, 20.12.2018, p. 25). 
Commission  Delegated  Regulation  (EU)  2019/1603  of  18  July  2019  supplementing  Directive 
2003/87/EC  of  the  European  Parliament  and  of  the  Council  as  regards  measures  adopted  by  the 
International  Civil  Aviation  Organisation  for  the  monitoring,  reporting  and  verification  of  aviation 
emissions for the purpose of implementing a global market-based measure (OJ L 250, 30.9.2019. p. 10). 

EN 

5 

  EN 

                                                 
(4) 

(5) 

Recommended  Practices  for  CORSIA5  is  calculated  on  the  basis  of  CO2  emissions 
verified in accordance with that Regulation. 

Due to a large decrease in aviation emissions in 2020 as a consequence of the COVID-
19 pandemic, the ICAO Council decided in its 220th session in June 2020  that 2019 
emissions should be used as baseline for calculating the offsetting by aircraft operators 
for the years 2021-23. 

Aviation emissions are highly likely to not exceed their collective 2019 levels in 2021. 
Therefore, aircraft operators’ additional offsetting is  expected to be zero for the  year 
2021. 

(6)  Member  States  should  implement  CORSIA  by  notifying  aircraft  operators  based  in 
those Member States of their offsetting in respect of year 2021 by 30 November 2022. 

(7) 

(8) 

(9) 

Since the objectives  of this  Decision cannot  be sufficiently  achieved by the Member 
States  but  can  rather,  by  reason  of  its  scale  and  effects,  be  better  achieved  at  Union 
level, the Union may adopt measures, in accordance with the principle of subsidiarity 
as  set  out  in  Article  5  of  the  Treaty  on  European  Union.  In  accordance  with  the 
principle of proportionality as set out in that Article, this Decision does not go beyond 
what is necessary in order to achieve those objectives.  

In  order  to  ensure  certainty  about  the  level  of  offsetting  in  respect  of  the  year  2021, 
this Decision should be adopted after 1 January 2022 when the total level of emissions 
for the year 2021 will be known. 

It  is  important  to  ensure  legal  certainty  for  national  authorities  and  for  aircraft 
operators as regards CORSIA offsetting for the year 2021 as soon as possible during 
2022. Accordingly, this Decision should enter into force without delay. 

(10)  Directive 2003/87/EC should therefore be amended accordingly, 

HAVE ADOPTED THIS DECISION:  

Article 1 

In Article 12 of Directive 2003/87/EC the following paragraph 6 is added: 

‘6. By 30 November 2022, Member States shall notify aircraft operators that, in respect of the 
year 2021, they have [zero] offsetting within the meaning of ICAO’s International Standards 
and  Recommended  Practices  on  Environmental  Protection  for  Carbon  Offsetting  and 
Reduction  Scheme  for  International  Aviation.  Member  States  shall  notify  aircraft  operators 
that fulfil the following conditions: 

(a) the aircraft operator holds an air operator certificate issued by a Member State or is 
registered  in  a  Member  State,  including  in  the  outermost  regions,  dependencies  and 
territories of that Member State; 

(b)  they  produce  annual  CO2  emissions  greater  than  10  000  tonnes  from  the  use  of 
aircrafts  with  a  maximum  certified  take-off  mass  greater  than  5  700  kg  conducting 
flights  covered  by  Annex  I,  other  than  those  departing  and  arriving  in  the  same 
Member  State  (including  outermost  regions  of  the  same  Member  State),  from  1 
January 2019. 

5 

First Edition of the International Standards and Recommended Practices on Environmental Protection 
— Carbon Offsetting and Reduction Scheme  for International Aviation (Annex 16, Volume IV to the 
Chicago Convention). 

EN 

6 

  EN 

                                                 
For the purposes of the first subparagraph, point (b), CO2 emissions from the following types 
of flights shall not be taken into account: 

(i) state flights; 

(ii) humanitarian flights; 

(iii) medical flights; 

(iv) military flights; 

(v) firefighting flights. 

This Decision shall enter into force on the day following that of its publication in the Official 
Journal of the European Union. 

Article 2 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

7 

  EN