Adoption of EU guidelines on the ETS help system to speed up the usage of sustainable aviation fuels

Adoption of EU guidelines on the ETS help system to speed up the usage of sustainable aviation fuels

On 6 February 2025, the Fee adopted a Delegated Regulation setting out the EU guidelines for the help system established and financed by the EU Emissions Buying and selling System (EU ETS), to hurry up the usage of sustainable aviation fuels. 

The European Local weather Regulation units an economy-wide goal of a minimum of 55% internet greenhouse fuel emission reductions by 2030 in comparison with 1990 ranges. Alongside carbon pricing, the EU ETS funds an Innovation Fund

to help progressive clear tech initiatives, together with within the aviation sector aiming to cut back the sector’s local weather impacts[1], in addition to particular help to bridge the price distinction for the usage of various fuels. 

The 2023 revision of the EU ETS Directive supplies a help mechanism for the usage of eligible aviation fuels. To incentivise early uptake of the best-performing various fuels by way of emissions discount potential, 20 million EU ETS allowances, estimated at round €1.6 billion, are put aside from 1 January 2024. 

The allowances cowl all or a part of the remaining value differential between fossil kerosene and the eligible aviation fuels utilized by particular person business plane operators on their flights lined by efficient carbon pricing by way of the EU ETS. A degree taking part in area is ensured, with all airways that function on these routes being handled equally.

To operationalise this help mechanism, the Fee adopted this Delegated Regulation to set up the foundations for the yearly calculation of the value distinction between eligible aviation fuels and fossil kerosene, bearing in mind incentives from the value of carbon and from harmonised minimal ranges of taxation, in addition to the foundations for allocating the ensuing allowances. 

The subsequent steps are for the airways to report the usage of these fuels throughout 2024, which ought to happen by 31 March 2025, and for the Fee to publish the gasoline value variations by 31 Might 2025. This shall be based mostly on a technical report back to be revealed by the European Union Security Company. Lastly, by 31 August the Fee will undertake a Resolution indicating the allocation of allowances per business airline that utilized for this help mechanism. 

The delegated act has now been submitted to the European Parliament and Council of the EU for scrutiny. Offered that these establishments don’t increase any objections inside two months, it should then be revealed within the Official Journal and enter into power.

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Adoption of EU guidelines on the ETS help system to speed up the usage of sustainable aviation fuels, supply