Aviation in the EU Emissions Trading Scheme. A first step towards reducing the impact of aviation on climate change

The European Commission's proposal of September 2005 to include the aviation sector in the EU Emissions Trading Scheme can be seen as a step forward in taking up the aviation sector in climate policy. The environmental impacts of including aviation in the EU-ETS will depend fully on the design of the trading system, with particular emphasis on the total CO2 emission allowances to be determined. In September 2005 the European Commission published its proposal in a Communication on policy instruments to reduce the climate change impacts of aviation. In this MNP report we are addressing Dutch negotiators and members of the Dutch and European parliaments who are not familiar with the details of the policy field with an overview of the main aspects of the policy issue. So far, aviation has not been included in European or international climate policies. However, as the overall climate impact of aviation is estimated at a factor of 2 to 4 higher than the impact of CO2 emissions alone, it is significant enough to be brought forward. If the aviation sector is included in the EU emissions trading system, in the short term the sector is expected to account for carbon emission reductions by purchasing CO2 allowances from other sectors. Impacts on the economy and the environment in the Netherlands are not expected to differ fundamentally from other countries. Kerosene tax and emissions charges may be worthwhile considering, although politically sensitive at international level