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EC publishes airline emissions data on which ETS allowances will be based

ATW Daily News by Perry Flint 8 Mar.11

The European Commission on Monday published its historical emissions data on which allocations for the aviation Emissions Trading Scheme will be based, stating that "aviation emissions of 219,476,343 tonnes of CO2 represents the average of the estimated annual emissions for the years 2004, 2005 and 2006" for flights that will be covered under the ETS starting next year. Based on this figure, the number of allowances to be created in 2012 amounts to 212,892,052 tonnes of CO2, representing 97% of historical emissions. Thenumber of allowances to be created each year from 2013 onward amounts to 208,502,525 tonnes of CO2 or 95% of historical emissions.

The EC said the calculation was based on data from Eurocontrol and actual fuel consumption information provided by operators. It added that additional calculations were performed to account for fuel consumption associated with the use of APUs at airports.

Eighty-two percent of allowances will be provided to aircraft operators at no charge, 15% will be auctioned off, and 3% "will be allocated to a special reserve for later distribution to fast-growing airlines and new entrants into the market." Free allowances will be allocated based on each airline's reported activity in 2010 in terms of passengers and freight carried and distance traveled.

European Commissioner for Climate Action Connie Hedegaard said, ''Emissions from aviation are growing faster than from any other sector, and all forecasts indicate they will continue to do so under business as usual conditions. Firm action is needed. By publishing the data on which allocations will be based, weprepare for the full inclusion of aviation in the emissions trading system.''The EC has estimated that the ETS will add around 12 ($16.78) to the price of an economy class return ticket between Brussels and New York.

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