Emissions Trading Scheme (ETS)
EU directives are now in place for aviation to join the ETS in 2012, and while some clarification is needed on the development of baseline data and allocation of permits, carriers need to be working on monitoring reporting and verification plans now.
It has been estimated that up to 2700 air carriers could be included in the scheme, all of whom will have to monitor and report their emissions to a member state competent authority. With the baseline for emissions likely to be an average of CO2 output for 2004,5,6 it looks highly probable that the industry will enter ETS as a net buyer of carbon credits – possibly with a deficit of between 60 and 80 million tonnes.
For most airlines the administrative burden of monitoring and reporting is going to exceed the financial cost/opportunity because the EU directives require a detailed inventory of both revenue tonne kilometres (RTK) and CO2 emissions to be kept by all carriers. However for some carriers, notably those who operate the greatest number of RTK’s there will be a more meaningful cost barrier through the auctioning of permits.
We have built up a deep understanding of the ETS and what is required of air carriers, including:
- MRV workshops, guidance and modelling
- Network impact analysis
- Scenario planning
- Cost assessment
- Facilitation of carbon trading
- Reductions verification process
- Carbon credit auctioning advice
- Operational footprint analysis
- Emissions reduction policy development
Contact us to discuss how we can support you in developing a position on this critical issue.
