Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending 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
Date: 2021-07-14
Institutions: Directorate-General for Climate Action, European Commission
Subjects: EU emission allowance, EU environmental policy, air transport, auction sale, emission trading, environmental protection, greenhouse gas, pollution control measures, reduction of gas emissions, tradeable emission permit

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   EUROPEAN COMMISSION  Brussels, 14.7.2021  COM(2021) 552 final 2021/0207 (COD)  Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending 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  {SEC(2021) 552 final} - {SWD(2021) 555 final} - {SWD(2021) 603 final} - {SWD(2021) 604 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

This  proposal  introduces  amendments  to  the  EU  Emissions Trading  System (EU  ETS) 
legislation in relation to its application to aviation to ensure that: 

(1) 

(2) 

(3) 

aviation  contributes  to  the  2030  emissions  reduction  target  in  accordance  with  the 
European Green Deal; 

the EU ETS is amended as appropriate in respect of the ICAO’s Carbon Offset and 
Reduction Scheme for International Aviation; and 

allocation  of  emission  allowances  in  respect  of  aviation  is  revised  to  increase 
auctioning. 

The objective is to revise the EU ETS in respect of aviation emissions in a cost-effective and 
coherent way in line with the Union’s increased climate target, while taking into account the 
need for a just transition and the need for all sectors to contribute to the EU climate efforts. 
The  European  Green  Deal1, adopted  by  the  Commission  in  December  2019,  as  well  as  the 
Climate Law2 and  the  Climate  Target  Plan  (CTP)3,  aim  at  enhancing  the  Union’s  climate 
commitment under the Paris Agreement, consistent  with  its objective of reaching  economy-
wide  climate  neutrality  in  the  EU  by  2050.  The  EU  is  increasing  its  economy-wide 
decarbonisation commitment, from at least 40% to at least 55% compared to 1990 levels by 
2030  without  using  international  credits.  To  reach  the  increased  climate  target,  all  sectors, 
including  aviation,  must  adequately  contribute  to  the  required  domestic  emission  reduction 
efforts. 

The European Green Deal aims to transform the EU into a fairer and more prosperous society, 
with a modern, resource-efficient and competitive economy where there are no net emissions 
of  greenhouse  gases  by  2050  and  where  economic  growth  is  decoupled  from  resource  use. 
The climate neutrality objective has been endorsed by the European Council and Parliament 
and is laid down in a legally binding manner in the politically agreed European Climate Law. 
The European Green Deal also aims to protect, conserve and enhance the EU's natural capital, 
and protect the health and well-being of citizens from environment-related risks and impacts. 
At the same time, this transition must be just and inclusive. 

Beyond the increase in EU 2030 ambition to achieve EU-wide economy-wide greenhouse gas 
emissions  reductions  domestically  by  at  least  55%  compared  to  1990,  the  2030  Climate 
Target Plan communication underlines that “in accordance with its international commitment 
to  economy-wide  action  under  the  Paris  Agreement,  the  EU  should  continue  to  regulate  at 
least intra-EU aviation emissions in the EU ETS”. In its conclusions of December 2020, the 
European  Council  “invites  the  Commission  to  assess  how  all  economic  sectors  can  best 
contribute  to  the  2030  target  and  to  make  the  necessary  proposals,  accompanied  by  an  in-
depth examination of the environmental, economic and social impact at Member State level”4. 

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COM(2019)640 final 
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing 
the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 
2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1). 
COM(2020)562 final 
https://www.consilium.europa.eu/media/47296/1011-12-20-euco-conclusions-en.pdf  

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Aviation  emissions  account  for  2-3%  of  global  CO2  emissions  and  have  significantly 
increased  since  1990  both  at  EU-level  and  globally.  At  EU-level,  CO2 emissions  from 
aviation  made  up  3.7%  of  the  economy-wide  total  or 15.7%  of  CO2 transport  emissions 
in 201849.  In  2018, the  EU  was  responsible  for  15% of the  global aviation  CO2 emissions5. 
Moreover,  non-CO2 climate  impacts  of  aviation  are  estimated  to  be  at  least  as  important  in 
total as those of CO2 alone6. 
Notwithstanding the recent reduction in traffic as a consequence of the COVID-19 pandemic, 
aviation climate impacts are projected to grow further given the sector’s historical growth of 
the  COVID-19 
economic 
above 
pandemic, Eurocontrol had  projected  an  annual  increase  in  European  aviation  emissions  by 
53% by 2040 compared to 201753. Before the COVID-19 crisis, ICAO had estimated that, by 
2040, international aviation emissions could rise by up to 150% compared to 202054. 

sectors.  Before 

average 

other 

the 

of 

A key tool for addressing CO2 emissions from aviation in Europe is the EU ETS. In the public 
consultation on updated rules for aviation ETS, 91% of respondents agree that aviation should 
contribute  more  to  climate  actions. 88%  of  respondents  believe  that market-based  measures 
can be effective to tackle aviation emissions in line with the climate objectives. Between 2013 
and 2020, an estimated net saving of 193.4 Mt CO2 was achieved by aviation via the EU ETS 
primarily  through  funding  of  emissions  reduction  in  other  sectors39.  This  constitutes  the 
aviation  contribution  to  the  2020  EU  climate  objective,  and  the  contribution  is  foreseen  to 
continue for 2030.   

Considering current and projected emissions from the aviation sector, and in the context of an 
enhanced  climate  ambition  of  the  EU  for  2030,  the  climate  contribution  needs  to  be 
significantly strengthened, also with a view to allow for the necessary contribution to the EU 
climate  neutrality  by  2050.   The  2019  European  Aviation  Environment  Report  has  also 
highlighted this need. 

The  Commission  has  prepared  a  number  of  impact  assessments  to  support  the  envisaged 
revisions  of  key  legislative  instruments  for  the  “Fit  for  55”  policy  package.  The  impact 
assessment on the revision of EU ETS aviation rules analyses various options through which 
the revision could effectively and efficiently contribute to the delivery of the updated target as 
part of the wider package. Therefore, the revision of aviation rules must be addressed together 
with the revision of EU ETS for stationary installations and its extension to other sectors. ETS 
elements  where  the  interlinkage  of  revisions  is  particularly  prominent  are  the  provisions 
concerning  total  quantity  of  aviation  allowances  and  application  of  linear  reduction  factor 
thereto as well as provisions regarding market stability reserve. Choices regarding the scope 
of EU ETS and CORSIA implementation will impact the level of emission reductions of the 
ETS  sector,  and  demand  for  EU  allowances.  Choices  regarding  the  auctioning  share  of 
aviation  allowances  will  impact  the  amount  of  auctioning  revenues  available  for  tackling 
climate change, as well as distributional elements. 

For aviation to contribute to  the  goals of the Paris Agreement, broader global  action should 
also take place. EU has supported ICAO’s CORSIA, and is working with others to encourage 
adequate  participation  and  implementation.  The  review  of  the  EU  ETS  for  aviation  should 
ensure that CORSIA is implemented as appropriate through the EU ETS and implementation 

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Intra-EEA  aviation  represented  7,5%  and  departing  flights  to  third  countries  another  7,5%.  Departing 
flights  are  covered  in  the  EU’s  NDC  under  the  Paris  Agreement  and  in  the  aviation  industry’s 
Destination 2050 initiative. 
COM(2020)777  quantifies  these  impacts,  while  COM(2020)747  and  associated  documents  analyse 
these effects in detail. 

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of CORSIA needs to ensure equal treatment of airlines. At the same time, any amendment of 
the  EU  ETS  Directive must  be  consistent  with EU’s  ambition  to  become  climate  neutral  by 
2050, the  Union’s  economy-wide  greenhouse  gas  emission  reduction  commitment  for  2030 
and with the aim of preserving the environmental integrity and effectiveness of Union climate 
action.  

A large volume of allowances have been allocated to aviation sector for free since 2012. The 
Communication  on  a  European  Green  Deal70 announced  that  there  would  be  a  proposal  to 
reduce  the  free  allowances  allocated  to  airlines.  This  is  re-stated  in  the  Communication  on 
Stepping  up  Europe’s  2030  climate  ambition.  As  free  allocation  is  a  derogation  from  the 
‘polluter pays’ principle, the default method in EU ETS is auctioning. The underlying analysis 
also suggests a low risk of carbon leakage and a very limited impact on consumer prices when 
increasing auctioning in respect of aviation. 

The main legal amendments are: 

(1) 

(2) 

(3) 

(4) 

to  consolidate  the  total  quantity  of  aviation  allowances  at  current  levels,  and  apply 
the linear reduction factor in accordance with Article 9 of the ETS Directive; 

to increase auctioning of aviation allowances; 

to  continue  intra-European  application  of  the  EU  ETS  while  applying  CORSIA  as 
appropriate to extra-European flights; and 

to  ensure  that  airlines  are  treated  equally  on  the  same  routes  with  regard  to  their 
obligations with economic impacts. 

In parallel to these amendments to the EU ETS Directive, a separate proposal is being made to 
implement Member State notification to EU-based airlines of zero CORSIA offsetting for the 
year 2021. The separate proposal relates to CORSIA-related aspects that should be in place by 
November 2022, for notification of zero additional offsetting to take place by that date. 

• 

Consistency with existing policy provisions in the policy area 

The ‘Fit for 55’ package is a comprehensive step in overhauling Union legislation to align it 
with  the  EU’s  increased  climate  ambition.  All  initiatives  in  the  package  are  closely 
interlinked, and each one depends on the design of the others.  

While  the  political  mandate  to  reinforce  the EU ETS  for  aviation  is  clear,  this  is  being 
examined in conjunction with other related and relevant initiatives, such as the revision of the 
Energy  Taxation  Directive  and 
the  Renewable  Energy  Directive,  as  well  as 
the ReFuelEU Initiative,  which  are  being  assessed  separately,  with  due  account  of  the  ETS 
dimension and impacts. 

As indicated in  the  European  Green  Deal,  reducing  climate  change  impacts  from  aviation 
requires  a  mix  of  policy  instruments,  as  there  is  no one  single  solution to  decarbonise the 
sector. The  revision  of  the  EU  ETS  for  aviation  is  therefore  part  of  a  so-called  “basket  of 
measures”,  which includes  market-based  measures like  the  EU  ETS  and  CORSIA, the 
boosting  of  the  production  and  uptake  of  sustainable  aviation  fuels  (“SAF”), aircraft 
technology  improvements and operational  improvements through e.g. the  Single  European 
Sky initiative.   

• 

Consistency with other Union policies 

All EU actions and policies must be consistent with the proposals of the ‘Fit for 55’ package 
and help the EU achieve the increased 2030 target and a successful and just transition towards 

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the  2050  climate  neutrality,  as  stated  by  the  Commission  in  the  European  Green  Deal 
Communication. 

As  such,  this  initiative  is  linked  to  many  other  policy  areas,  including  the  Union’s  external 
policies, e.g. through the EU encouraging partner countries to also implement CORSIA, and 
support to help ensure that airlines operate on an equal footing. The Commission announced it 
will  improve  the  way  its  Better  Regulation  guidelines  and  supporting  tools  address 
sustainability  and  innovation  issues,  with  the  objective  that  all  EU  initiatives  live  up  to  the 
green oath to ‘do no harm’. This initiative is also consistent with the EU’s policy for research 
and  innovation  and  will  enhance  synergies  between  the  EU’s  deployment  programmes  in 
particular  the  Innovation  Fund  and  the  EU  Framework  Programmes  for  research  and 
innovation by incentivising the uptake and deployment of low-carbon innovative solutions. 

The  impact  assessment  accompanying  the  2030  Climate  Target  Plan  assessed  carefully  the 
possibility  of  reinforcing  and  expanding  emissions  trading  as  one  of  the  tools  to  achieve 
greenhouse gas emission reductions at the EU level. 

Consistency  with  other  Union  policies  is  also  ensured  through  the  coherence  of  the  impact 
assessments for the EU ETS with the assessments made for the remainder of the 2030 climate, 
energy and transport framework, and with other  measures  presented  as  part of the basket of 
measures to address greenhouse gas emissions from aviation. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal  basis for  the  EU  ETS  Directive  2003/87/EC,  as  well  as  all  subsequent  legislation 
amending it and other legislation regulating GHG emissions, is Article 192 of the Treaty on 
the  Functioning  of  the  European  Union.  This  should  remain  the legal  basis for  any  new 
legislation addressing climate impacts of aviation, as the principal objective of the measure is 
the protection of the environment through the reduction of GHG emissions. 

• 

Subsidiarity  

The EU ETS Directive is an existing EU policy instrument. In accordance with the principle 
of subsidiarity set out in Article 5 of the Treaty of the Functioning of the European Union, the 
objectives of the proposal amending this instrument can only be achieved through legislation 
at EU level. 

An EU legal act is required for Member States to apply CORSIA as appropriate for the flights 
covered  by  the  geographical  scope  of  application  of  Directive  2003/87/EC  as  set  out  in  its 
Annex  I, i.e. flights  departing  from  airports  in  the EEA and  arriving  to  other  airports 
in EEA or to third countries and, incoming flights to airports in the EEA from third countries.  

Acting  at  EU  level,  and  where  possible  at  global  level,  is  more  efficient  than  acting  at  the 
Member  State  level,  due  to  the  transboundary  effects  of  climate  change  and  the  largely 
transnational  nature  of  aviation.  Action  at  EU  level  will  most  effectively  deliver  the  EU's 
domestic  and  international  climate  targets  and  ensure  the  harmonised  and  appropriate 
implementation of CORSIA in respect of the EU. 

• 

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 

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greenhouse  gas  emissions  for  the  period  2021  to  2030  in  a  cost-effective  manner,  while 
ensuring  fairness,  environmental  integrity,  proper  functioning  of  the  internal  market,  and 
implementation of CORSIA. 

The  European  Council  has  endorsed  an  overall  economy-wide  and  domestic  reduction  in 
greenhouse gas emissions of at least 55% below 1990 levels by 2030. This proposal covers a 
large part of these greenhouse gas emissions, and revises the Directive in order to achieve this 
objective. 

• 

Choice of the instrument 

The objectives of the present proposal are best pursued through an amending Directive. This 
is  the  most  appropriate  legal  instrument  to  make  amendments  to  the  existing  EU  ETS 
Directive,  Directive  2003/87/EC.  A  Directive  requires  Member  States  to  achieve  the 
objectives  and  implement  the  measures  into  their  national  substantive  and  procedural  law 
systems.  Member  States  should  ensure  that  national  transposition  provisions  do  not  hamper 
innovation and are technologically neutral. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Article  28b(2)  of  Directive  2003/87/EC  requires  the  Commission  to  present  a  report  to  the 
Council  and  the  European  Parliament  on   CORSIA,  examining  its  ambition  and  overall 
environmental  integrity,  including  its  general  ambition  in  relation  to  targets  under  the  Paris 
Agreement,  the  level  of  participation,  its  enforceability,  transparency,  the  penalties  for  non-
compliance, the processes for public input, the quality of offset credits, monitoring, reporting 
and verification of emissions, registries, accountability as well as rules on the use of biofuels. 
In the light of this, a proposal should be made to amend Union law to implement CORSIA as 
appropriate.  

In  addition,  Article  28b(2)  of  Directive  2003/87/EC  provides  that  the  report  of  the 
Commission should consider whether the provisions adopted under Article 28c(2) need to be 
revised. Article 28b(3) of the EU ETS Directive foresees the Commission accompanying the 
report  with “a  proposal,  where  appropriate,  to  amend,  delete,  extend  or  replace”  the 
derogations provided for in Article 28a (which limit the scope of EU ETS to intra-EEA flights 
from  2017-23),  that  is “consistent  with  the  Union  economy-wide  greenhouse  gas  emission 
reduction  commitment  for  2030  with  the  aim  of  preserving  the  environmental  integrity  and 
effectiveness of Union climate action”.  

The report is included in the impact assessment accompanying this proposal, and draws on a 
study  “Assessment  of  ICAO’s  global  market-based  measure  (CORSIA)  pursuant  to  Article 
28b and for studying cost pass-through pursuant to Article 3d of the EU ETS Directive”7.  

Article  3d(2)  of  the  EU  ETS  Directive  requires  the  Commission  to  “study  the ability  of  the 
aviation sector to pass on the cost of CO2 to its customers in both the EU ETS and ICAO’s 
market-based  measure,  comparing  this  to  industries  and  to  the  power  sector,  and  with  the 
intention to propose to increase the percentage of auctioning pursuant to the review referred 
to in Article 28b(2). 

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SWD [link to be included by time of adoption] 

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The  study  is  included  in  the  Impact  assessment  on Revision  of  the  EU  Emissions  Trading 
System in respect of aviation, and draws on the report “Assessment of ICAO’s global market-
based measure (CORSIA) pursuant to Article 28b and for studying cost pass-through pursuant 
to Article 3d of the EU ETS Directive”.  

• 

Stakeholder consultations 

Stakeholders were consulted on the inception impact assessment between 3 July 2020 and 28 
August 2020. In total, 54 entities submitted a feedback.  Of respondents, EU MS supported a 
coexistence of the EU ETS and CORSIA; non-EU countries expressed concern with overlap 
between  EU  ETS  and  CORSIA,  partial  implementation  of  CORSIA,  treatment  of  non-EU 
carriers  and  the  exclusivity  of  CORSIA.    Regarding  CORSIA  implementation  options,  the 
vast majority of NGOs favoured full scope EU ETS or options maintaining at minimum the 
current scope or hybrid options in between. They also supported immediate full auctioning. 

Most  business  associations  and  companies  preferred  the  CORSIA  only  policy  option.  On 
auctioning,  most  business  associations  and  companies  favoured  the  status  quo  or  the  slow 
reduction, and the use of the revenues for the aviation industry. EU citizens who responded 
were in favour of more climate ambition from the sector. 

The open public stakeholder consultation took place between 1 October 2020 and 14 January 
2021,  and  received  a  total  of  81  responses.  In  the  public  consultation,  91%  of  respondents 
agree that the aviation sector should contribute more to climate actions. 88% of respondents 
believe that market-based measures can be effective to tackle aviation emissions in line with 
the  climate  objectives. 82%  of  respondents  to  the  public  consultation  agreed  that  market-
based  measures  be  combined  with  other  policies  such  as  support  for  innovative  aviation 
technologies, operational  improvements, taxation, and the production and  use of sustainable 
aviation fuels.  

For  CORSIA  implementation  options,  opinions  differed  between  and  within  stakeholder 
groups. For business associations, the most preferable options were CORSIA ONLY and MIX 
option  with  33%  of  responses  for  each  option.  The  least  preferable  options  were  ETS  full 
legal scope and MIX BIS with 33% of responses for each option. For public authorities, 30% 
found CORSIA ONLY the most preferable option, and 40% found CORSIA ONLY the least 
preferable option.  For  NGOs, EU ETS  full legal  scope was the most preferable option with 
89% of responses, and CORSIA only the least preferable option with 44% of responses. 

For  increasing  the  auctioning  share  of  aviation  allowances,  most  stakeholders  preferred  the 
immediate phase out, while they held maintaining the status quo as the least preferred option. 
Respondents’ views were clearly split between or auctioning share increase options. 53% of 
business  associations  preferred  the  status  quo  and  stated  immediate  phase-out  as  the  least 
preferred option (74%).  56% of NGOs preferred immediate phase-out, and 63% stated status 
quo as their least preferred option. 60% of public authorities preferred slow phase-out of free 
allocation.  

Large  majority  of  the  stakeholders  considered  that  increasing  auctioning  could  increase  the 
cost  of  flying,  while  the  majority  also  agreed  that  this  measure  would  contribute  to  climate 
change mitigation.  

• 

Impact assessment 

The impact assessment has analysed the various options through which a revision of EU ETS 
in respect of aviation could effectively and efficiently contribute to the delivery of the updated 
target  as  part  of  such  a  wider  “Fit  for  55”  policy  package.  The  impact  assessment  analyses 

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different  options  for  CORSIA  implementation  through  the  EU  ETS  and  for  increase  of 
auctioning share.  

The  options  for  implementing  CORSIA  differ  in  the  extent  to  which  the  existing  EU  ETS 
coverage  is  maintained,  reduced  or  extended. Comparison  of  options  shows  that while  ETS 
price incentives are orders of magnitude more meaningful than the price of CORSIA quality 
offsets, the overall environmental impact at global level across policy options is limited due to 
the  limited  geographical  scope  of  the  EU  ETS.  However,  there  are  significant  differences 
between the options as regards the contribution to the EU’s emission reduction target. There 
are  also considerable  differences  in  terms  of  revenues  stemming  from  the  different  policy 
option  combinations,  as  CORSIA,  by  design, does not  generate  any public revenue  from 
airlines. The preferred option is to maintain the current EU ETS coverage (intra-EEA flights, 
including departing flights to Switzerland and to the UK) and introduce appropriate CORSIA-
related  provisions  for  flights  that  are  currently  not  covered  by  the  EU  ETS (flights  to/from 
third countries, and by EU-based airlines between two third countries). 

The  options  for  increasing  the  auction  share  in  allocating  aviation  allowances  differ  in  the 
speed of increase. The comparison of the analysed options shows a strong case for moving to 
full  auctioning  from  the  date  of  entry  into  force  of  the  revised  legislation. While 
free allowances have  been  allocated  notably  to  address  potential  adverse  competitiveness 
impacts  and  carbon  leakage, they  constitute  a  derogation  from  the  ‘polluter  pays’  principle. 
The  analysis  suggests  a  low  risk  of  carbon  leakage  when  increasing  the  auctioning 
share. Switching to full auctioning implies stabilising the cap for aviation at current levels as 
auctioning  is  currently  a  fixed  percentage  of  free  allocations. This  would maintain  current 
level of environmental integrity for the aviation cap, and the cap would be subject to the linear 
reduction  factor,  as  already  required  by  the  co-legislators  and as is  the  case  for  all  other 
operators  in  the  EU  ETS. The  removal  of  free  allocation  in  the  EU  ETS would reinforce  its 
environmental integrity. The preferred option is increased auctioning from the entry into force 
of the amendment.  

• 

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 Union. 

4. 

BUDGETARY IMPLICATIONS 

Under the existing ETS, most of the auction revenues accrue to Member States, hence there 
are positive impacts on national budgets. Adjustments to the EU budgetary framework will be 
presented  by  the  Commission  as  part  of  the  upcoming  Own  Resources  package  including  a 
proposal to amend the multiannual financial framework. 

For  the  existing coverage  of  the  EU ETS, there  are  no  additional  administrative  impacts  on 
national administrations. The impacts of the implementation of CORSIA should be limited by 
using the same infrastructures.  

IT  development  and  procurement  choices  will  be  subject  to  pre-approval  by  the  European 
Commission Information Technology and Cybersecurity Board. 

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5. 

• 

OTHER ELEMENTS 

Detailed explanation of the specific provisions of the proposal 

Article 3c, paragraphs 1 to 3 are amended to consolidate the total quantity of allowances for 
aviation  at  the  level  of  allocation/auctioning  for  intra-European  flights  and  departing  flights 
from EEA airports to Switzerland and the UK. The allocation for year 2024 will be based on 
the total allocation to active aircraft operators in 2023, reduced by the linear reduction factor 
as specified in the ETS Directive. The allocation shall be increased by the level of allocation 
that  would  have  been  made  if  routes  between  outermost  regions,  and  other  states  than  the 
Member State in which the outermost region is located, had been covered by the ETS in 2023. 
The temporary derogation from EU ETS obligations for these routes expires on 31 December 
2023. The increased cap shall be reduced by the linear reduction factor as specified in the ETS 
Directive. 

A time-limited derogation from the EU ETS is proposed for emissions from flights between 
an aerodrome located in an outermost region of a Member State and an aerodrome located in 
the same Member State. 

Article 3d paragraph 1 is replaced to establish increased auctioning of allowances for aviation 
from year after the entry into force of the amendment. The amendment is for transition to full 
auctioning as from 2027. 

Article 3d paragraph 2 is deleted as obsolete. 

Article 3d, paragraph 3, first sentence is amended to reflect that delegated acts to be adopted 
to  supplement  this  Directive  concerning  the  detailed  arrangements  for  the  auctioning  by 
Member States of aviation allowances should include the modalities for the transfer of a share 
of revenues to the Union budget. 

Article 3d, paragraph 4 is replaced to reflect a stronger recommendation that Member States 
use ETS  auctioning  revenues to  tackle  climate change  and that a share of those  revenues is 
attributed  to  the  Union  budget  under  Decision  (EU,  Euratom)  2020/2053  on  the  system  of 
own resources.   

Articles 3e and 3f are deleted as free allocation rules to aircraft operators are no longer needed 
after the transition to full auctioning. 

Article 11a, paragraphs 1 to 4 are replaced to provide for EU-based airlines to use appropriate 
international  credits  for  compliance  for  flights  to  or  from  third  countries  that  are  applying 
CORSIA.  To  ensure  that  the  EU’s  CORSIA  implementation  supports  the  Paris  Agreement 
goals and gives incentives for broad participation to CORSIA, the following conditions must 
be met: compliance credits originate from states that are Parties to the Paris Agreement and 
that participate in CORSIA, and double counting of credits is avoided. 

A  new  paragraph  8  is  added  to  Article  11a,  empowering  the  Commission  to  adopt  an 
implementing act specifying the credits which have been considered acceptable by the ICAO 
Council to use for compliance of CORSIA. 

A  new  paragraph  6  is  added  to  Article  12,  implementing  CORSIA  for  EU  companies  for 
flights  to,  from  and  outside  European  Economic  Area,  Switzerland  and  UK.  Airlines’ 
surrender  obligations  for  these  flights  are  decreased  from  full  amount  of  emissions  to  their 
share of collective aviation emissions as per CORSIA baseline. 

EN 

8 

  EN 

New paragraphs 3 to 9 are added to Article 25a.  

The  Commission  is  empowered  to  adopt  and  maintain  an  implementing  act  listing  states 
(other than EEA, Switzerland and UK) which are considered to be applying CORSIA for the 
purposes of Union law.  

CORSIA verification of compliance of non-EU based airlines is meant to belong solely to the 
home  country  of  these  airlines.  Implementing  CORSIA  for  extra-European  flights  therefore 
means exempting non-European airlines from the EU ETS obligations for the flights between 
Europe and third countries that are implementing CORSIA. 

To ensure equal treatment on routes, flights to and from countries that are not implementing 
CORSIA would be exempt from EU ETS or CORSIA obligations.  

Flights to and from most Least Developed Countries and Small Island Developing States not 
implementing CORSIA would be exempt from EU ETS or CORSIA obligations without end 
date for the exemption. 

The  Commission  should  be  empowered  to  adopt  an  implementing  act  exempting  EU-based 
airlines from surrender requirements in respect of emissions from flights where a significant 
distortion of competition to the detriment of EU-based airlines occurs due to a less stringent 
implementation or enforcement of CORSIA in the third country. The distortion of competition 
could  be  caused  by  a  less  stringent  approach  to  eligible  offset  credits  or  double  counting 
provisions. 

EN 

9 

  EN 

2021/0207 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending 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 

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) 

1 
2 
3 

4 

5 

Directive  2003/87/EC  of  the  European  Parliament  and  of  the  Council3  established  a 
system  for  greenhouse  gas  emission  allowance  trading  within  the  Union,  in  order  to 
promote reductions of greenhouse gas emissions in a cost-effective and economically 
efficient manner. Aviation activities were included in the EU emissions trading system 
by Directive 2008/101/EC of the European Parliament and of the Council4. 

The  Paris  Agreement,  adopted  in  December  2015  under  the  United  Nations 
Framework  Convention  on  Climate  Change  (UNFCCC)  entered  into  force  in 
November  2016  (“the  Paris  Agreement”)5.  The  parties  to  the  Paris  Agreement  have 
agreed to hold the increase in the global average temperature well below 2 °C above 
pre-industrial levels  and  to  pursue  efforts to  limit  the temperature increase to  1,5 °C 
above pre-industrial levels. In order to achieve the objectives of the Paris Agreement, 
all  sectors  of  the  economy  need  to  contribute  to  achieving  emission  reductions, 
including international aviation. 

OJ C , , p. . 
OJ C , , p. . 
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  within  the  Union  and  amending  Council 
Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32). 
Directive 2008/101/EC of the European Parliament and of the Council of 19 November 2008 amending 
Directive  2003/87/EC  so  as  to  include  aviation  activities  in  the  scheme  for  greenhouse  gas  emission 
allowance trading within the Community (OJ L 8, 13.1.2009, p. 3). 
Paris Agreement (OJ L 282, 19.10.2016, p. 4). 

EN 

10 

  EN 

 
 
                                                 
(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

6 

7 

8 
9

10 

The  International  Civil  Aviation  Organization  (ICAO)  Council  adopted  the  First 
Edition of the International Standards and Recommended Practices on Environmental 
Protection  -  Carbon  Offsetting  and  Reduction  Scheme  for  International  Aviation 
(CORSIA) (Annex 16, Volume IV to the Chicago Convention) at the tenth meeting of 
its  214th  session  on  27 June  2018.  The  Union  and  its  Member  States  continue  to 
support CORSIA and are committed to implement it from the start of the pilot phase 
2021-20236. 
In  line  with  Council  Decision  (EU)  2018/20277,  Member  States  notified  the  ICAO 
Secretariat  of  differences  between  CORSIA  and  the  EU  ETS.  The  objective  was  to 
preserve  the  Union  acquis  and  future  policy  space,  as  well  as  the  Union  level  of 
climate  ambition  and  the  exclusive  roles  of  the  European  Parliament  and  Council  in 
deciding the contents of Union legislation. Following the adoption of this amendment 
to Directive 2003/87/EC, the notification of differences between CORSIA and the EU 
ETS to the ICAO Secretariat should be updated to reflect the revisions made to Union 
law. 

Tackling climate and environmental-related challenges and reaching the objectives of 
the Paris Agreement are at  the core of the Communication on “The European Green 
Deal”, adopted by the Commission on 11 December 20198.  

The Union undertook to reduce its economy-wide net greenhouse gas emissions by at 
least 55 % below 1990 levels by 2030 in the updated nationally determined reduction 
commitment  of  the  Union  and  its  Member  States  submitted  to  the  UNFCCC 
Secretariat on 17 December 20209. 

The Union has enshrined into legislation the target of economy-wide climate neutrality 
by  2050  in  Regulation  (EU)  2021/1119  of  the  European  Parliament  and  of  the 
Council10.  That  Regulation  also  establishes  a  binding  Union  domestic  reduction 
commitment of net greenhouse gas emissions (emissions after deduction of removals) 
by at least 55% below 1990 levels by 2030. 

This amendment to Directive 2003/87/EC aims at the implementation for aviation of 
the Union’s contributions under the Paris Agreement, and of the regulatory framework 
to  achieve  the  binding  Union  2030  climate  target  of  a  domestic  reduction  of  net 
greenhouse gas emissions by at least 55 % compared to 1990 levels by 2030 set out in 
Regulation (EU) 2021/ … .  

Council Decision (EU) 2020/954 of 25 June 2020 on the position to be taken on behalf of the European 
Union  within  the  International  Civil  Aviation  Organization  as  regards  the  notification  of  voluntary 
participation  in  the  Carbon  Offsetting  and  Reduction  Scheme  for  International  Aviation  (CORSIA) 
from  1  January  2021  and  the  option  selected  for  calculating  aeroplane  operators’  offsetting 
requirements during the 2021-2023 period (OJ L 212, 3.7.2020, p. 14). 
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). 
COM(2019)640 final. 

https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/European%20Union%20First/E

U_NDC_Submission_December%202020.pdf 
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing 
the framework for achieving climate neutrality (European Climate Law) (OJ L 243, 9.7.2021, p. 1). 

EN 

11 

  EN 

                                                 
 
(9) 

(10) 

(11) 

Aviation should contribute to the emission reduction efforts necessary for the Union’s 
2030 climate target. Therefore, the total quantity of allowances for aviation should be 
consolidated and subject to the linear reduction factor.  

 Achieving the increased climate ambition will require channelling as many resources 
as  possible  to  the  climate  transition.  As  a  result,  all  auction  revenues  that  are  not 
attributed to the Union budget should be used for climate-related purposes. 

In accordance with Article 28b(3) of Directive 2003/87/EC, the Union is to assess the 
ICAO’s  CORSIA  scheme  and  implement  it  as  appropriate,  and  in  a  manner  that  is 
consistent with the Union’s economy-wide emission reduction commitment for 2030. 

(12)  The  total  quantity  of  allowances  for  aviation  should  be  consolidated  at  the  level  of 
allocation for flights departing from an aerodrome located in the EEA and arriving at 
an  aerodrome  located  in  the  EEA,  in  Switzerland  or  in  the  United  Kingdom.  The 
allocation for the  year 2024 should  be based on  the total  allocation to  active aircraft 
operators in year 2023, reduced by the linear reduction factor as specified in Article 9 
of  Directive  2003/87/EC.  The  level  of   allocation  should  be  increased  to  take  into 
account  the  routes  that  were  not  covered  by  the  EU  ETS  in  the  year  2023  but  are 
covered by the EU ETS from year 2024 onwards.  

(13) 

Increased  auctioning  from  the  year  after  the  entry  into  force  of  this  amendment  to 
Directive  2003/87/EC  should  be  the  rule  for  the  aviation  sector  allocation  of 
allowances,  taking  into  account  the  sector’s  ability  to  pass  on  the  increased  cost  of 
CO2.  

(14)  Directive 2003/87/EC  should  also  be  amended  with regard to  acceptable  compliance 
units, to take into account the Unit Eligibility Criteria adopted by the ICAO Council at 
its 216th session in March 2019 as an essential element of CORSIA. Airlines based in 
the Union should be able to  use international  credits for compliance  for flights  to  or 
from third countries that are considered to be participating in CORSIA. To ensure that 
the  Union’s  CORSIA  implementation  supports  the  Paris  Agreement  goals  and  gives 
incentives for broad participation to CORSIA, the credits should originate from states 
that  are  parties  to  the  Paris  Agreement  and  that  participate  in  CORSIA,  and  double 
counting of credits should be avoided. 

(15) 

In order to ensure uniform conditions for the use of international credits in accordance 
with Article 11a of Directive 2003/87/EC, implementing powers should be conferred 
on  the  Commission  to  adopt  a  list  of  the  credits  which  have  been  considered 
acceptable by the ICAO Council to use for compliance of CORSIA, and that fulfil the 
eligibility  conditions  above.  Those  powers  should  be  exercised  in  accordance  with 
Regulation (EU) No 182/2011 of the European Parliament and of the Council11. 

(16)  To  ensure  that  the  necessary  arrangements  are  in  place  for  authorisation  by  the 
participating  parties,  timely  adjustments  to  the  reporting  of  anthropogenic  emissions 
by sources and removals by sinks covered by the nationally determined contributions 
of the participating parties,  and avoiding double counting and a net increase in global 
emissions, implementing powers should be conferred on the Commission to lay down 
detailed  requirements  for  such  arrangements.  Those  powers  should  be  exercised  in 

11 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by the Member States 
of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

EN 

12 

  EN 

                                                 
accordance with Regulation (EU) No 182/2011 of the European Parliament and of the 
Council12.  

(17)  For  CORSIA  implementation  on  flights  other  than  flights  departing  from  an 
aerodrome  located  in  the  EEA  and  arriving  at  an  aerodrome  located  in  the  EEA,  in 
Switzerland or in the United Kingdom, surrender obligations should be decreased for 
Union-based  aircraft  operators  operating  these  flights.  Aircraft  operators’  surrender 
obligations  for  these  flights  should  be  decreased  to  only  their  share  of  collective 
international aviation emissions above collective 2019 levels, in respect of emissions 
during 2021-23, and above collective 2019-20 levels for subsequent years of CORSIA 
application.  

(18) 

In order to ensure uniform conditions for listing countries which are considered to be 
applying  CORSIA  for  the  purposes  of  Directive  2003/87/EC  pursuant  to  Article 
25a(3) of that Directive, implementing powers should be conferred on the Commission 
to adopt and maintain the list of states other than EEA countries, Switzerland and the 
United  Kingdom,  which  are  considered  to  be  participating  in  CORSIA  for  the 
purposes  of  Union  law.  Those  powers  should  be  exercised  in  accordance  with 
Regulation (EU) No 182/2011 of the European Parliament and of the Council. 

(19)  As CORSIA implementation and enforcement for aircraft operators based outside the 
Union  is  meant  to  belong  solely  to  the  home  country  of  these  aircraft  operators, 
implementing  CORSIA  for  flights  other  than  flights  departing  from  an  aerodrome 
located in the EEA and arriving at an aerodrome located in the EEA, in Switzerland or 
in  the  United  Kingdom  means  exempting  aircraft  operators  based  outside  the  Union 
from the EU ETS obligations for these flights. 

(20)  To  ensure  equal  treatment  on  routes,  flights  to  and  from  countries  that  are  not 
implementing CORSIA should be exempt from EU ETS or CORSIA obligations. To 
incentivise  full  implementation  of  CORSIA  starting  in  2027,  the  exemption  should 
only apply to emissions up to 31 December 2026. 

(21)  Flights to and from Least Developed Countries and Small Island Developing States, as 
defined  by  the  United  Nations,  not  implementing  CORSIA,  other  than  those  states 
whose GDP per capita equals  or exceeds  the Union average, should be exempt from 
EU ETS or CORSIA obligations without an end date for the exemption. 

(22) 

In order to ensure uniform conditions for exempting aircraft operators from surrender 
requirements  as  laid  down  in  Article  12(8)  of  Directive  2003/87/EC  in  respect  of 
emissions  from  flights  to  and  from  countries  applying  CORSIA  in  a  less  stringent 
manner  in  its  domestic  law,  or  failing  to  enforce  CORSIA  provisions  in  a  manner 
equal  to  all  aircraft  operators  pursuant  to  Article  25a(7)  of  that  Directive, 
implementing  powers  should  be  conferred  on  the  Commission  to  exempt  airlines 
based in  the Union  from surrender  requirements  in  respect  of  emissions  from flights 
where a significant distortion of competition to the detriment of airlines based in the 
Union occurs due to a less stringent implementation or enforcement of CORSIA in the 
third  country.    The  distortion  of  competition  could  be  caused  by  a  less  stringent 
approach to eligible offset credits or double counting provisions. Those powers should 

12 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by the Member States 
of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

EN 

13 

  EN 

                                                 
(23) 

(24) 

be  exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council. 

In order to ensure uniform conditions for the establishment of a level playing field on 
routes between two different countries applying CORSIA where those countries allow 
aircraft operators to use other units than those on the list adopted pursuant to Article 
11a(8)  of  Directive  2003/87/EC,  pursuant  to  Article  25a(8)  of  that  Directive, 
implementing  powers  should  be  conferred  on  the  Commission  to  allow  aircraft 
operators  based  in  a  Member  State  to  use  unit  types  additional  to  the  list  adopted 
pursuant to Article 11a(8) or not to be bound by the conditions of Article 11a(2) and 
(3).  Those  powers  should  be  exercised  in  accordance  with  Regulation  (EU)  No 
182/2011 of the European Parliament and of the Council.   

In  order  to  ensure  a  level  playing  field  on  routes  between  two  third  countries 
implementing CORSIA, the power to adopt acts in accordance with Article 290 of the 
Treaty should be delegated to the Commission in respect of accepting other credits on 
those routes. It is of particular importance that the Commission carry out appropriate 
consultations  during  its  preparatory  work,  including  at  expert  level,  and  that  those 
consultations  be  conducted  in  accordance  with  the  principles  laid  down  in  the 
Interinstitutional Agreement of 13 April 2016 on Better Law-Making13. In particular, 
to  ensure  equal  participation  in  the  preparation  of  delegated  acts,  the  European 
Parliament and the Council receive all documents at the same time as Member States' 
experts,  and  their  experts  systematically  have  access  to  meetings  of  Commission 
expert groups dealing with the preparation of delegated acts. 

(25)  Special  consideration  should  be  given  to  promoting  accessibility  for  the  outermost 
regions of the Union. Therefore, a derogation from the EU ETS should be provided for 
emissions  from  flights  between  an  aerodrome  located  in  an  outermost  region  of  a 
Member State and an aerodrome located in the same Member State. 

(26)  A  comprehensive  approach  to  innovation  is  important  to  achieving  the  European 
Green Deal objectives and for the competitiveness of the European industry. This is of 
particular  importance  for  hard  to  decarbonise  sectors  such  as  aviation  and  shipping 
where  a  combination  of  operational  improvements,  alternative  climate-neutral  fuels 
and  technological  solutions  need  to  be  deployed.  Therefore,  Member  States  should 
ensure  that  the  national  transposition  provisions  do  not  hamper  innovations  and  are 
technologically neutral. At EU level, the necessary R&I efforts, are supported among 
others,  through  the  Horizon  Europe  Framework  Programme,  which  includes 
significant funding and new instruments for the sectors coming under the ETS. 

(27)  Since the objectives of this Directive 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 Directive does not go beyond 
what is necessary in order to achieve those objectives.  

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

13 

OJ L 123, 12.5.2016, p.1. 

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14 

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HAVE ADOPTED THIS DIRECTIVE: 

Article 1 

Directive 2003/87/EC is amended as follows: 

(1) 

Article 3c is amended as follows: 

(a) 

paragraph 2 is deleted, 

(b) 

the following paragraphs 5, 6 and 7 are added: 

‘5.  The  Commission  shall  determine  the  total  quantity  of  allowances  to  be 
allocated  in  respect  of  aircraft  operators  for  the  year  2024  on  the  basis  of  the  total 
allocation of allowances in respect of aircraft operators that were performing aviation 
activities  falling  within  Annex  I  in  the  year  2023,  reduced  by  the  linear  reduction 
factor specified in Article 9, and shall publish that quantity, as well as the quantity of 
free allocation which would have taken place in 2024 if the rules for free allocation 
were not updated.  

6. 
In  respect  of  flights  departing  from  an  aerodrome  located  in  the  EEA  which 
arrive at an aerodrome located in the EEA, in Switzerland or in the United Kingdom, 
which were not covered by the EU ETS in 2023, the total quantity of allowances to 
be  allocated  to  aircraft  operators  shall  be  increased  by  the  levels  of  allocations, 
including free allocation and auctioning, which would have been made if they were 
covered by the EU ETS in that year, reduced by the linear reduction factor specified 
in Article 9. 

7.   By  way  of  derogation  from  Articles  12(2a),  14(3)  and  Article  16,  Member 
States shall consider the requirements set out in those provisions to be satisfied and 
shall  take  no  action  against  aircraft  operators  in  respect  of  emissions  taking  place 
until  2030  from  flights  between  an  aerodrome  located  in  an  outermost  region  of  a 
Member  State  and  an  aerodrome  located  in  the  same  Member  State  outside  that 
outermost region.’; 

(2) 

Article 3d is amended as follows: 

(a) 

paragraph 1 is replaced by the following: 

‘1.  In  2024,  25%  of  the  quantity  of  allowances  in  respect  of  which  free  allocation 
would  have  taken  place  as  published  in  accordance  with  Article  3c  shall  be 
auctioned.’, 

(b) 

the following paragraph 1a, 1b, 1c and 1d are added: 

‘1a.  In 2025, 50% of the quantity of allowances in respect of which free allocation 
would  have  taken  place  in  that  year,  calculated  from  the  publication  in  accordance 
with Article 3c shall be auctioned. 

1b.  In  2026,  75%  of  the  quantity  of  allowances  in  respect  of  which  free  allocation 
would  have  taken  place  in  that  year,  calculated  from  the  publication  in  accordance 
with Article 3c shall be auctioned. 

1c. As from 1 January 2027, all of the quantity of allowances in respect of which free 
allocation would have taken place in that year shall be auctioned.’, 

1.d. Allowances which are allocated for free shall be allocated to  aircraft  operators 
proportionately to their share of verified emissions from aviation activities reported 
in 2023. This calculation shall also take into account verified emissions from aviation 

EN 

15 

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activities reported in respect of flights that are only covered by the  EU ETS from 1 
January 2023.’, 

(c) 

paragraph 2 is deleted, 

(d) 

the first sentence of paragraph 3 is replaced by the following:  

‘The Commission is empowered to adopt delegated acts in  accordance with Article 
23  to  supplement  this  Directive  concerning  the  detailed  arrangements  for  the 
auctioning by Member States of aviation allowances in accordance with paragraphs 
1, 1a, 1b, 1c and 1d of this Article, including the modalities for the transfer of a share 
of revenue from such auctioning to the general budget of the Union.’,  

(e) 

paragraph 4 is replaced by the following: 

‘4. Member States shall determine  the use of revenues generated from the auctioning 
of  allowances  covered  by  this  Chapter,  except  for  the  revenues  established  as  own 
resources in accordance with Article 311(3) of the Treaty and entered in the general 
budget  of  the  Union.  Member  States  shall  use  the  revenues  generated  from  the 
auctioning of allowances in accordance with Article 10(3).’; 

(3) 

(4) 

Articles 3e and 3f are deleted; 

In Article 6(2), point (e) is replaced by the following:  

‘(e)  an  obligation  to  surrender  allowances  equal  to  the  total  emissions  of  the 
installation  in  each  calendar  year,  as  verified  in  accordance  with  Article  15,  within 
four months following the end of that year.’; 

(5) 

Article 11a is amended as follows: 

(a) 

paragraphs 1 to 3 are replaced by the following: 

(a) 

(b) 

(c) 

(d) 

Subject to paragraphs 2 and 3 of this Article, aircraft operators that hold an air 
‘1. 
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 
shall be able to use the following units to comply with their obligations as laid down 
in Article 12 in respect of emissions from flights to and from countries that are listed 
in the implementing act adopted pursuant to Article 25a(3): 

credits authorised by parties participating in the mechanism established under Article 
6(4) of the Paris Agreement;  

credits  authorised  by  the  parties  participating  in  crediting  programmes  which  have 
been considered eligible by the ICAO Council as identified in the implementing act 
adopted pursuant to paragraph 8; 

credits authorised by parties agreements pursuant to paragraph 5; 

credits issued in respect of Union level projects pursuant to Article 24a.  

Units  referred  to  in  paragraph  1,  points  (a)  and  (b),  may  be  used  if  the 

2. 
following conditions have been met: 

(a) 

(b) 

they originate from a country that is a party to the Paris Agreement at the time 
of use; 

they  originate  from  a  country  that  is  listed  in  the  implementing  act  adopted 
pursuant to Article 25a(3) as participating in Carbon Offsetting and Reduction 
Scheme for International Aviation (CORSIA). This condition shall not apply in 
respect  of  emissions  before  2027,  nor  shall  it  apply  in  respect  of  Least 

EN 

16 

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Developed  Countries  and  Small  Island  Developing  States,  as  defined  by  the 
United  Nations,  except  for  those  countries  whose  GDP  per  capita  equals  or 
exceeds the Union average. 

3. 
Units  referred  to  in  paragraph  1,  points  (a),  (b)  and  (c),  may  be  used  if 
arrangements  are  in  place  for  authorisation  by  the  participating  parties,  timely 
adjustments  are  made  to  the  reporting  of  anthropogenic  emissions  by  sources  and 
removals  by  sinks  covered  by  the  nationally  determined  contributions  of  the 
participating parties,  and that double counting and a net increase in global emissions 
are avoided.  

The  Commission  shall  adopt  implementing  acts  laying  down  more  detailed 
requirements  for  the  arrangements  referred  to  in  the  first  subparagraph,  which  may 
include reporting and registry requirements, and for listing the states or programmes 
which  apply  these  arrangements.  Arrangements  shall  take  account  of  flexibilities 
accorded to Least Developed Countries and Small Island  Developing States. Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 22a(2).’, 

(c) 

paragraph (4) is deleted, 

(d) 

the following paragraph 8 is added: 

‘8.  The  Commission  shall  adopt  an  implementing  act  listing  credits  which,  have 
been  considered  eligible  by  the  ICAO  Council,  and  that  fulfil  the  conditions  laid 
down  in  paragraphs  2  and  3.  The  Commission  shall  amend  that  list  as  appropriate. 
That  implementing  act  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 22a(2).’; 

(6) 

Article 12 is amended as follows: 

(a) 

paragraph 6 is replaced by the following: 

‘6.  In accordance with the methodology laid down in the delegated act referred to in 
paragraph 7, Member States shall calculate the offsetting each year for the preceding 
the  meaning  of  ICAO’s  International  Standards  and 
calendar  year  within 
Recommended  Practices  on  Environmental  Protection  for  Carbon  Offsetting  and 
Reduction Scheme for International Aviation, other than those which apply in respect 
of  flights  departing  from  an  aerodrome  located  in  the  EEA  which  arrive  at  an 
aerodrome located in the EEA, in Switzerland or in the United Kingdom, and by 30 
November  each  year  inform  the  aircraft  operators  that  fulfil  all  of  the  following 
conditions of the level of offsetting: 

(a) 

(b) 

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; 

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. 

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; 

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 (ii) humanitarian flights; 

 (iii) medical flights; 

 (iv) military flights; 

 (v) firefighting flights.’, 

(b) 

the following paragraphs 7 and 8 are added: 

‘7. The Commission is empowered to adopt delegated acts in accordance with Article 
23  to  supplement  this  Directive  by  laying  down  the  methodology  for  calculating 
offsetting responsibilities for aircraft operators. 

8.  In  respect  of  flights  to,  from  and  between  the  countries  that  are  listed  in  the 
implementing act adopted pursuant to Article 25a(3), aircraft operators that hold 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,  shall  cancel  units  referred  to  in  Article  11a  only  in  respect  of  the  quantity 
notified  by  that  Member  State  in  respect  of  the  relevant  calendar  year.  The 
cancelation shall take place by 31 January 2025 for emissions in the period 2021 to 
2023, by 31 January 2028 for emissions in the period 2024 to 2026, by 31 January 
2031 for emissions in the period 2027 to 2029, by 31 January 2031 for emissions in 
the  period  2027  to  2029,  by  31  January  2034  for  emissions  in  the  period  2030  to 
2032 and by 31 January 2037 for emissions in the period 2033 to 2035,’; 

(7) 

In Article 18a, paragraph 3, point (b) is replaced by the following: 

‘(b)  as  from  2024,  at  least  every  two  years,  update  the  list  to  include  aircraft 
operators which have subsequently performed an aviation activity listed in Annex I.’; 

(8) 

Article 23 is amended as follows: 

(a) 

paragraphs 2 and 3 are replaced by the following: 

‘2. The power to adopt delegated acts referred to in Articles 3d(3), 10(4), 10a(1) and 
(8),  10b(5),  12(7),  third  subparagraph,  19(3),  Article  22,  Articles  24(3),  24a(1), 
25a(1)  and  Article  28c  shall  be  conferred  on  the  Commission  for  an  indeterminate 
period of time from 8 April 2018. 

3.  The  delegation  of  power  referred  to  in  Articles  3d(3),  10(4),  10a(1)  and  (8), 
10b(5),  12(7),  third  subparagraph,  19(3),  Article  22,  Articles  24(3),  24a(1),  25a(1) 
and  Article  28c  may  be  revoked  at  any  time  by  the  European  Parliament  or  by  the 
Council.  A  decision  to  revoke  shall  put  an  end  to  the  delegation  of  the  power 
specified in that decision. It shall take effect the day following the publication of the 
decision  in  the  Official  Journal  of  the  European  Union  or  at  a  later  date  specified 
therein. It shall not affect the validity of any delegated acts already in force.’, 

(b)  paragraph 6 is replaced by the following: 

‘6. A delegated act adopted pursuant to Articles 3d(3), 10(4), 10a(1) and (8), 10b(5), 
12(6),  third  subparagraph,  19(3),  Article  22,  Articles  24(3),  24a(1),  25a(1)  and 
Article 28c shall enter into force only if no objection has been expressed either by the 
European Parliament or by the Council within a period of two months of notification 
of that act to the European Parliament and to the Council or if, before the expiry of 
that  period,  the  European  Parliament  and  the  Council  have  both  informed  the 
Commission that they will not object. That period shall be extended by two months 
at the initiative of the European Parliament or of the Council.’; 

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(9) 

In Article 25a, the following paragraphs 3 to 9 are added: 

‘3.   The Commission  shall adopt  an implementing act  listing countries other than 
EEA  countries,  Switzerland  and  the  United  Kingdom,  which  are  considered  to  be 
applying  CORSIA  for  the  purposes  of  this  Directive,  with  a  baseline  of  2019  for 
2021 to 2023 and a baseline 2019-2020 for each year thereafter. That implementing 
act  shall  be  adopted  in  accordance  with  the  examination  procedure  referred  to  in 
Article 22a(2). 

In respect of emissions from flights to or from countries that are listed in the 
4.  
implementing act adopted pursuant to paragraph 3, aircraft operators that hold an air 
operator certificate issued by a country or  that is registered in a country that is listed 
therein shall not be required to cancel units in respect of those emissions. 

In respect of emissions occurring until 31 December 2026 from flights between 
5. 
the EEA and countries that are not listed in the implementing act adopted pursuant to 
paragraph  3,  other  than  flights  to  Switzerland  and  the  United  Kingdom,  aircraft 
operators shall not be required to cancel units.  

6. 
In  respect  of  emissions  from  flights  to  and  from  Least  Developed  Countries 
and  Small  Island  Developing  States  as  defined  by  the  United  Nations,  other  than 
those  listed  in  the  implementing  act  adopted  pursuant  to  paragraph  3,  aircraft 
operators shall not be required to cancel units. 

7.   Where  the  Commission  determines  that  there  is  a  significant  distortion  of 
competition  which  is  detrimental  to  aircraft  operators  that  hold  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,  the 
Commission shall be empowered to adopt implementing acts to exempt those aircraft 
operators  from  surrender  requirements  as  laid  down  in  Article  12(8)  in  respect  of 
emissions from flights to and from such countries. The distortion of competition may 
be  caused  by  a  third  country  applying  CORSIA  in  a  less  stringent  manner  in  its 
domestic  law,  or  failing  to  enforce  CORSIA  provisions  in  a  manner  equal  to  all 
aircraft operators. Those implementing acts shall be adopted in accordance with the 
examination procedure referred to in Article 22a(2). 

8.  Where  an  aircraft  operator  that  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,  operates  flights  between  two 
different  countries  listed  in  the  implementing  act  adopted  pursuant  to  paragraph  3, 
including  flights  that  take  place  between  Switzerland,  the  United  Kingdom  and 
countries listed in the implementing act adopted pursuant to paragraph 3, and those 
countries  allow  aircraft  operators  to  use  other  units  than  those  on  the  list  adopted 
pursuant  to  Article  11a(8),  the  Commission  shall  be  empowered  to  adopt 
implementing  acts  allowing  those  aircraft  operators  to  use    unit  types  additional  to 
that list or not to be bound by the conditions of Article 11a(2) and (3) in respect of 
emissions from such flights. Those implementing acts shall be adopted in accordance 
with the examination procedure referred to in Article 22a(2).’; 

(10) 

In Annex I, in the table, the following text is inserted after the first paragraph of the 
entry ‘Aviation’ of the column ‘Activities’: 

‘Flights between aerodromes that are located in two different countries that are listed 
in the implementing act adopted pursuant to Article 25a(3) by aircraft operators that 
fulfil all of the following conditions: 

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(a) 

(b) 

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; 

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. For the purposes of this point, 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.’. 

Article 2 

1. 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions necessary to comply with this Directive by 31 December 2023. They shall 
immediately communicate the text of those measures to the Commission. 

When  Member  States  adopt  those  measures,  they  shall  contain  a  reference  to  this 
Directive  or  shall  be  accompanied  by  such  a  reference  on  the  occasion  of  their 
official  publication.  Member  States  shall  determine  how  such  reference  is  to  be 
made. 

2. 

Member States shall communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by this Directive. 

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

Article 3 

This Directive is addressed to the Member States. 

Done at Brussels, 

Article 4 

For the European Parliament 
The President 

For the Council 
The President 

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