The European Union has taken another significant step towards climate neutrality by expanding its Emissions Trading System (ETS) to include non-CO₂ emissions from the aviation sector. These non-CO₂ effects, such as persistent contrails, nitrogen oxides (NOx), and soot particles, have long been recognized for their substantial contribution to global warming, accounting for two-thirds of aviation’s total climate impact.
Building on the Intergovernmental Panel on Climate Change (IPCC) recommendations, the EU has now mandated the establishment of a robust monitoring, reporting, and verification (MRV) system to address these effects. This system is set to be operational from January 1, 2025, and represents a crucial enhancement to the EU’s already stringent climate policies.
The revisions also introduce zero-rating for emissions from the combustion of renewable fuels of non-biological origin (RFNBOs), recycled carbon fuels (RCFs), and synthetic low-carbon fuels (SLCFs) in the ETS. However, these fuels must comply with the criteria set out in the Renewable Energy Directive (RED II), particularly concerning ‘additionality’ rules—where the electricity used for RFNBO production must be renewable and additional—and greenhouse gas (GHG) emissions savings, which must be at least 70% compared to a comparable fossil fuel on a life-cycle basis. These measures are crucial to ensure that emissions are accurately accounted for and that double counting is avoided.
“The inclusion of non-CO₂ effects in the EU ETS marks a critical step forward in addressing aviation’s full climate impact, aligning with our commitment to climate neutrality.”
Additionally, the EU has implemented improvements to existing rules, such as regulations on CO₂ transfer methods other than pipelines and the treatment of CO₂ emissions considered permanently chemically bound in a product. The revised rules also cover the zero-rating of biomass fuels, with the use of an EU-wide database facilitating compliance with RED II’s sustainability and GHG-saving criteria.
Analysis:
This development underscores the EU’s commitment to addressing the full spectrum of aviation’s environmental impacts. The inclusion of non-CO₂ emissions in the ETS is a forward-thinking move that aligns with the EU’s broader climate neutrality goals. The new MRV system, supported by the EU ETS Innovation Fund and Horizon Europe research program, will enhance scientific understanding of aviation’s climate effects and drive further mitigation efforts.
The zero-rating of certain renewable fuels, while providing a pathway for the aviation sector to reduce its carbon footprint, also ensures that the highest sustainability standards are maintained. The stringent criteria for these fuels reflect the EU’s dedication to fostering a genuinely green aviation industry.
As the aviation sector continues to face scrutiny over its environmental impact, these new rules could serve as a model for other regions looking to implement comprehensive climate policies. The EU’s approach not only targets CO₂ emissions but also addresses the broader climate impact of aviation, setting a new standard for global aviation practices.
Source: European Commission Press Release
