Decision (EU) 2023/136 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

Summary:

Decision (EU) 2023/136 - adopted by the co-legislators on 18 January 2023 - introducing amendments to Directive 2003/87/EC as regards the notification of offsetting in respect of a global market-based measure for aircraft operators based in the European Union (EU). This is a text with EEA relevance.

Further information:

This Decision introduces an amendment to aviation rules in the 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).

Directive 2003/87/EC established an EU Emissions Trading System (EU ETS). It is aimed at tackling climate change by reducing greenhouse gas (GHG) emissions in a cost-effective and economically efficient way. It is based on the cap and trade principle. This Directive has been amended on several occasions over the years. 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 (coronavirus) pandemic, the ICAO Council decided in 2020 that 2019 emissions should be used as baseline in 2021-2023 instead of the average of 2019-2020 emissions.

The draft law was unveiled by the European Commission on 14 July 2021, as part of the so-called Fit for 55 legislative package. Member State representatives adopted a general approach on behalf of the Council of the European Union on 20 May 2022. The plenary of the European Parliament endorsed a negotiating position on 8 June. An informal agreement between the co-legislators on a compromise text for this file was reached in November 2022. This was formally endorsed by the Parliament on 13 November and by the Council on 19 December. The Act was signed by the co-legislators on 18 January 2023 and published in the Official Journal on 20 January 2023.

• Primary Source

Commentary and Analysis

Linklaters: Sustainable Futures, 29/07/2022: EU “Fit for 55” package: changes to EU Emissions Trading System – putting a price on carbon https://sustainablefutures.linklaters.com/post/102h43u/eu-fit-for-55-package-changes-to-eu-emissions-trading-system-putting-a-price

---

Official

EUR-LEX: COM(2021)567: Proposal for a Decision 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 https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:567:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Notification under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) (2021/0204(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2021/0204(COD)

European Parliament: LegislatIve Train Schedule: Notification on the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) https://www.europarl.europa.eu/legislative-train/theme-a-european-green-deal/file-notification-on-international-aviation-carbon-offsetting-and-reduction-scheme

European Parliament: Press Release, 11/05/2022: ETS aviation/CORSIA: updated notification rules under international scheme https://www.europarl.europa.eu/news/en/press-room/20220509IPR29120/

Council of the European Union: Press Release, 20/05/2022: Decision on offsetting requirements for air transport emissions – CORSIA: Council adopts its position https://www.consilium.europa.eu/en/press/press-releases/2022/05/20/decision-corsia-carbon-offsetting-and-reduction-scheme-for-international-aviation-le-conseil-adopte-sa-position/

European Parliament: Press Release, 08/06/2022: Urgent action needed to reduce emissions in the aviation sector https://www.europarl.europa.eu/news/en/press-room/20220603IPR32156/

European Commission: Press Release, 14/07/2021: European Green Deal: Commission proposes transformation of EU economy and society to meet climate ambitions https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3541

Council of the European Union: Press Release, 19/12/2022: Council adopts decision on offsetting requirements for air transport emissions (CORSIA) https://www.consilium.europa.eu/en/press/press-releases/2022/12/19/council-adopts-decision-on-offsetting-requirements-for-air-transport-emissions-corsia/

---