Date: 2023-10-31Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Decision (EU) 2023/2440 of 27 October 2023 on the Union-wide total quantity of allowances to be allocated in respect of aircraft operators under the EU Emissions Trading System for 2024
Executive Summary:
This Commission Decision EU 2023/2440 establishes the total quantity of emission allowances for aircraft operators under the EU Emissions Trading System (ETS) for 2024. It considers amendments introduced by Directive EU 2023/958, including an increased linear reduction factor. The decision sets the total allowances at 28,866,578 and specifies the amount of free allocation under previous rules. It enters into force twenty days after publication in the Official Journal of the European Union.
Key Points / Main Content:
* **Total Allowances for 2024:**
* The total quantity of allowances to be allocated to aircraft operators for 2024 is 28,866,578. This figure is relevant to Article 3c(5) of Directive 2003/87/EC.
* **Calculation Methodology:**
* The total quantity of allowances is based on the 2023 allocation, reduced by a linear reduction factor.
* Excluded from the 2023 calculation are aircraft operators who had no aviation activity listed in Annex I to Directive 2003/87/EC.
* The amount is adjusted for flights only covered by the EU ETS from 2024 (flights between outermost regions of Member States) and flights no longer covered (flights within the same outermost region), resulting in an addition of 30,259,690 allowances.
* **Linear Reduction Factor:**
* Directive EU 2023/958 increased the linear reduction factor to 4.3% for 2024-2027.
* The linear reduction factor, calculated based on the allocation in 2020, amounts to 1,393,112 allowances for each year from 2024 to 2026.
* **Free Allocation (Prior to Directive EU 2023/958):**
* The quantity of free allocation that would have taken place in 2024 under the previous rules is 24,536,591.
* **Scope:**
* The decision applies to states within the European Economic Area (EEA) and the European Free Trade Association.
Impact Analysis:
* **Aircraft Operators:**
* *Impact:* Determines the number of emission allowances they will receive for 2024 under the EU ETS, affecting their compliance obligations and operational costs.
* *Action Required:* Understand their 2024 allowance allocation and plan for emissions reductions or allowance purchases as needed.
* **European Commission:**
* *Impact:* Responsible for implementing and enforcing the EU ETS, including calculating and allocating allowances.
* *Action Required:* Ensure the decision is properly implemented and communicated to relevant stakeholders.
* **Member States of the EEA and EFTA:**
* *Impact:* Need to incorporate the decision into their national regulations and monitor compliance by aircraft operators.
* *Action Required:* Update national regulations to reflect the 2024 allowance allocation and ensure effective monitoring of aircraft operator emissions.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
EU Emissions Trading System: A cap-and-trade system for reducing greenhouse gas emissions.
European Economic Area: The area that enables European Free Trade Association (EFTA) countries to participate in the EU's single market without being EU members.
Switzerland: A country in Europe bordering the European Economic Area.
United Kingdom: A country in Europe which was previously a member of the European Union.
Directive 2003/87/EC: Directive of the European Parliament and of the Council establishing a system for greenhouse gas emission allowance trading within the Union.
Directive EU 2023/958: 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.
Ursula VON DER LEYEN: The President of the European Commission.
Official Journal EN
of the European Union L series
2023/2440 31.10.2023
COMMISSION DECISION (EU) 2023/2440
of 27 October 2023
on the Union-wide total quantity of allowances to be allocated in respect of aircraft operators under
the EU Emissions Trading System for 2024
(Text with EEA relevance)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003establishing a
system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC(1), and
in particular Article 3c(5) thereof,
Whereas:
(1) Article 3c of Directive 2003/87/EC sets the calculation methodology for the total quantity of allowances to be
allocated to aircraft operators for the year 2024 for flights within the European Economic Area and departing to
Switzerland and to the United Kingdom, supplementing the amount of 1 386 051 745 allowances determined in
Commission Decision (EU) 2023/1575(2).
(2) Directive (EU) 2023/958 of the European Parliament and of the Council(3)amended Directive 2003/87/EC to base
the total quantity of allowances to be allocated in respect of aircraft operators for the year 2024 on the total
allocation of allowances in respect of aircraft operators that were performing aviation activities listed in Annex I to
Directive 2003/87/EC in the year 2023, reduced by the linear reduction factor as referred to in Article 9 of that
Directive. As a first step, the Commission determined the total quantity of allowances in respect of aircraft operators
that were performing aviation activities listed in Annex I to Directive 2003/87/EC in the year 2023, which consist of
85 % free allocation and 15 % auction volume. Aircraft operators that were excluded for the year 2023 on
1 September 2023 were not taken into account, as those operators had no aviation activity listed in Annex I to
Directive 2003/87/EC in 2023. In accordance with Article 3c(7) of Directive 2003/87/EC, the amount is to be
increased by the levels of allocations in respect of flights which are only covered by the EU ETS from 1 January
2024, concerning flights between an aerodrome located in an outermost region of a Member State and an
aerodrome located in another Member State, and decreased by the level of allocation in respect of flights that are
not covered by the EU ETS from 1 January 2024 anymore, concerning flights within the same outermost region.
This amounts to 30 259 690allowances.
(3) Directive (EU) 2023/958 amended Directive 2003/87/EC to increase the linear reduction factor from 2,2 % to 4,3 %
for the years 2024 to 2027, and to apply a linear reduction factor of 4,4 % from 2028. To apply the 4,3 % reduction
in 2024, compared to 2023 levels, the linear reduction factor has been calculated based on the allocation in the year
2020, and amounts to 1 393 112 allowances for each of the years 2024 to 2026. The application of this linear
reduction factor results in 28 866 578allowances for the year 2024.
(4) In order for the free allocation to aircraft operators to be calculated in accordance with Article 3d(1) of
Directive 2003/87/EC, Article 3c(5) of that Directive requires the Commission to also publish the amount of free
allocation which would have taken place in 2024 under the rules for free allocation in force prior to the
amendments introduced by Directive (EU) 2023/958. This amount is 85 % of the total quantity of allowances to be
allocated in respect of aircraft operators or to supplement innovation support through the Innovation Fund
established by Article 10a(8) of Directive 2003/87/EC.
(1) OJ L 275, 25.10.2003, p. 32.
(2) Commission Decision (EU) 2023/1575 of 27 July 2023 on the Union-wide quantity of allowances to be issued under the EU Emissions
Trading System for 2024 (OJ L 192, 31.7.2023, p. 30).
(3) Directive (EU) 2023/958 of the European Parliament and of the Council of 10 May 2023 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 (OJ L 130, 16.5.2023, p. 115).
ELI: http://data.europa.eu/eli/dec/2023/2440/oj 1/2EN
OJ L, 31.10.2023
(5) The total quantity of allowances to be allocated in respect of aircraft operators for 2024 and the yearly reduction of
the allowances to be issued applies to the States of the European Economic Area and the European Free Trade
Association,
HAS ADOPTED THIS DECISION:
Article 1
The total quantity of allowances to be allocated in respect of aircraft operators for 2024 referred to in Article 3c(5) of
Directive 2003/87/EC amounts to 28 866 578.
Article 2
The quantity of free allocation which would have taken place in 2024 under the rules for free allocation in force prior to the
amendments introduced by Directive (EU) 2023/958 amounts to 24 536 591.
Article 3
This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the
European Union.
Done at Brussels, 27 October 2023.
For the Commission
The President
Ursula VON DER LEYEN
2/2 ELI: http://data.europa.eu/eli/dec/2023/2440/oj