UK government issues list of number of free carbon permits for airlines in the UK ETS
The government has announced that Britain has published a list of the number of free UK carbon permits each aircraft operator will receive from 2021-2025 under the country’s domestic emissions trading system (ETS). The UK has initiated its own system, after Brexit. Only domestic flights and flights within the EU are covered – not all international flights, as was the case with the EU ETS. The number declines slightly betweeN 2021 and 2025. Aircraft operators can apply for free allocation based on their historical aviation activity. Free permits for the 2021 scheme year will be allocated to operator holding accounts in the UK ETS registry in the coming weeks. Operators had to apply by 31st March. This is organised through BEIS. The website says: “Aircraft operators have to submit 2010 and/or 2014 verified tonne-kilometre (tkm) data to their regulator. This data should cover all full-scope flights and must contain tkm data associated with UK ETS aviation activity. Free allocation will be distributed in proportion with UK ETS aviation activity emissions rather than full-scope flight emissions.” The government says the free allocation is “to reduce the risk of carbon leakage for businesses.”
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Government UK ETS stuff
https://www.gov.uk/government/publications/participating-in-the-uk-ets/participating-in-the-uk-ets
and
https://www.gov.uk/guidance/uk-ets-apply-for-free-allocation
and the table showing the number of free permits is at
Britain publishes CO2 permit free allocation list for aviation
Reuters
29.6.2021
LONDON, June 29 (Reuters) – Britain has published a list of the number of free UK carbon permits each aircraft operator will receive from 2021-2025 under the country’s domestic emissions trading system (ETS), the government said.
The ETS is a method of charging power plants and other industrial entities for each tonne of carbon dioxide they emit. Britain launched its own market to replace the European Union’s ETS after it left the bloc.
The UK’s ETS applies to energy intensive industries, the power generation sector and aviation.
Under the scheme, some installations and aircraft operators can get free emissions permits to reduce the risk of businesses transferring their activities to other countries due to climate costs.
The government said free permits for the 2021 scheme year will be allocated to operator holding accounts in the UK ETS registry in the coming weeks, following administrator approvals.
Reporting by Nina Chestney, editing by Louise Heavens
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See earlier:
Pressure on UK as Germany backs EU ending free carbon permits for airlines
The German government is backing an extension of EU carbon pricing that will end free carbon permits for airlines, putting pressure on the UK to put in place a similar package to meet climate targets. The European Commission will propose several climate policies on 14th July, to try to cut greenhouse gases faster in line with an EU goal to cut net emissions by 55% by 2030 from 1990 levels. The package will include reforms to the EU carbon market. Germany has backed the EC’s plan to impose CO2 prices on transport through a separate system to the EU’s existing ETS. Germany said the reforms to the EU’s carbon market should prolong free carbon permits “to an appropriate extent”, but end them soon for aviation. The UK has created its own carbon pricing market since leaving the EU, but it mostly follows the existing EU model and focuses on heavy industries and energy providers. The UK’s pledge to reduce CO2 emissions 78% by 2035 will dramatically force up the cost of fuel for transportation, including flying. Not all MPs are happy with that.
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Having left the EU, there is now a UK Emissions Trading Scheme (ETS) and aviation will be covered in that, in the same way as it was in the EU ETS. So only applies to flights within the UK, or any flight within Europe (the countries that are the EEA). In response to a question in Parliament by Ben Bradshaw (Labour), Anne-Marie Trevelyan, Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth) said: “The UK ETS initially covers around one third of UK greenhouse gas emissions, and applies to the power sector, heavy industry, domestic aviation, and flights from the UK to the European Economic Area. We recognise that meeting Net Zero will require us to build on this ambition. That is why in the next 9 months we will consult on how to align the UK ETS cap with an appropriate net zero trajectory. The cap will provide certainty about the UK’s decarbonisation trajectory over the long-term … We are also committed to explore expanding the UK ETS and will set out our aspirations to continue to lead the world on carbon pricing in the run up to COP26.”
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