Directive (EU) 2023/958 amending Directive 2003/87/EC as regards aviation’s contribution to the Union’s economy-wide emission reduction target and the appropriate implementation of a global market-based measure

Summary:

Directive (EU) 2023/958 - adopted by the co-legislators on 10 May 2023 - introducing amendments to Directive 2003/87/EC as regards aviation's contribution to the European Union's economy-wide emission reduction target and appropriately implementing a global market-based measure.

Further information:

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.

This Directive introduces amendments to the EU ETS legislation in relation to its application to aviation to ensure that it contributes to the emission reduction target in accordance with the European Green Deal and later in the Commission's 2030 Climate Target Plan. It also amends the system as appropriate in respect to ICAO's CORSIA, and it revises the allocation of emissions allowances to increase auctioning.

The draft law was adopted by the European Commission on 14 July 2021, as part of the so-called Fit for 55 legislative package. The plenary of the European Parliament endorsed a negotiating position on 8 June 2022. The Council of the European Union adopted a general approach on 29 June. An informal agreement between the co-legislators on a compromise text for the file was reached on 6 December. This was formally endorsed by the Parliament on 18 April 2023 and by the Council on 25 April. The Act was signed by the co-legislators on 10 May 2023 and published in the Official Journal on 16 May 2023.

• Primary Source

Commentary and Analysis

Transport&Environment: Flying and Climate Change: Aviation in the ETS https://www.transportenvironment.org/what-we-do/flying-and-climate-change/aviation-ets

European Parliamentary Research Service (EPRS): Briefing, 02/03/2022: Fit for 55 package: revising the EU Emissions Trading System as regards aviation - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)699484

European Parliamentary Research Service (EPRS): At a Glance, 01/06/2022: Revision of the EU emissions trading system: Aviation https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2022)729452

International Air Transport Association (IATA): Press Release, 09/06/2022: EU Parliament Emissions Trading Amendment Damages International Climate Change Cooperation https://www.iata.org/en/pressroom/2022-releases/2022-06-09-02/

Euronews, 08/12/2022: EU to charge airlines more for polluting - but will ‘average Europeans’ pay the price? https://www.euronews.com/green/2022/12/08/eu-to-charge-airlines-more-for-polluting-but-will-average-europeans-pay-the-price

European Parliamentary Research Service (EPRS): Briefing, 07/03/2023: Aviation's contribution to European Union climate action: Revision of EU ETS as regards aviation https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)698882

European Parliamentary Research Service (EPRS): At a Glance, 12/04/2023: Revision of the EU emissions trading system: Aviation https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2023)745712

International Air Transport Association (IATA): Europe Region Blog, 18/04/2023: EU ETS reform destabilizes international consensus for aviation carbon reductions https://www.iata.org/en/about/worldwide/europe/blog/eu-ets-reform-destabilizes-international-consensus-for-aviation-carbon-reductions/

---

News

Politico, 13/07/2021: EU bets big on emissions trading scheme comeback https://www.politico.eu/article/brussels-emissions-trading-scheme-climate-change/

Reuters, 20/01/2022: Lead EU lawmaker wants airlines to pay for their CO2 emissions sooner https://www.reuters.com/markets/commodities/lead-eu-lawmaker-wants-airlines-pay-their-co2-emissions-sooner-2022-01-20/

EurActiv, 07/12/2022: Lawmakers agree to restrict EU carbon tax to flights within Europe https://www.euractiv.com/section/aviation/news/lawmakers-agree-to-restrict-eu-carbon-tax-to-flights-within-europe/

---

Official

EUR-LEX: COM(2021)552: Proposal for a Directive 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 https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:552:FIN

EUR-LEX: SWD(2021)555: Staff Working Document accompanying the Proposal - Subsidiarity Grid https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:555:FIN

EUR-LEX: SWD(2021)603: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:603:FIN

EUR-LEX: SWD(2021)604: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:604:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on aviation's contribution to EU ETS (2021/0207(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2021/0207(COD)

European Parliament: Legislative Train Schedule: Revision of the EU Emissions Trading System for aviation, as part of the European Green Deal https://www.europarl.europa.eu/legislative-train/theme-a-european-green-deal/file-revision-of-the-eu-emission-trading-system-for-aviation

European Commission: DG Climate Action: Aviation and the EU ETS https://climate.ec.europa.eu/eu-action/european-green-deal/delivering-european-green-deal/aviation-and-eu-ets_en

European Commission: Climate Action: Reducing emissions from aviation https://ec.europa.eu/clima/policies/transport/aviation_en

European Commission: Climate Action: ETS: Allocation to aviation https://ec.europa.eu/clima/policies/ets/allowances/aviation_en

European Commission: Have Your Say: EU emissions trading system - updated rules for aviation https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12494-EU-emissions-trading-system-updated-rules-for-aviation_en

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

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/

Council of the European Union: Press Release, 29/06/2022: Fit for 55 package: Council reaches general approaches relating to emissions reductions and their social impacts https://www.consilium.europa.eu/en/press/press-releases/2022/06/29/fit-for-55-council-reaches-general-approaches-relating-to-emissions-reductions-and-removals-and-their-social-impacts/

Council of the European Union: Press Release, 07/12/2022: ETS aviation: Council and Parliament strike provisional deal to reduce flight emissions https://www.consilium.europa.eu/en/press/press-releases/2022/12/07/ets-aviation-council-and-parliament-strike-provisional-deal-to-reduce-flight-emissions/

European Parliament: Press Release, 07/12/2022: Fit for 55: deal on more ambitious emissions reduction for aviation https://www.europarl.europa.eu/news/en/press-room/20221205IPR60611/

European Commission: Press Release, 09/12/2022: European Green Deal: new rules agreed on applying the EU emissions trading system in the aviation sector https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7609

European Parliament: Press Release, 18/04/2023: Fit for 55: Parliament adopts key laws to reach 2030 climate target https://www.europarl.europa.eu/news/en/press-room/20230414IPR80120/

Council of the European Union: Press Release, 25/04/2023: 'Fit for 55': Council adopts key pieces of legislation delivering on 2030 climate targets https://www.consilium.europa.eu/en/press/press-releases/2023/04/25/fit-for-55-council-adopts-key-pieces-of-legislation-delivering-on-2030-climate-targets/

---