Explanatory Memorandum to COM(2016)183 - EU position in respect of an international instrument intended to lead to the implementation from 2020 of a single global market-based measure addressing aviation emissions

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The 21th Conference of the Parties to the UN Convention on Climate change successfully adopted the Paris Agreement whose objective is to limit global temperature increase well below 2°C compared to pre-industrial levels, and to pursue efforts to limit temperature increase to 1.5°. By 2050, global greenhouse gas emissions should be reduced by at least 50% below their 1990 levels. All sectors of the economy should contribute to achieving these emission reductions, including international aviation.

Greenhouse gas emissions from international aviation represent more than 2% of global emissions and are growing exponentially, with projections for 2050 indicating that, under a business as usual scenario, such emissions from aviation activities could grow above 200% compared to current levels. The Commission Communication to the European Parliament and the Council on 'The Paris Protocol – A blueprint for tackling global climate change beyond 2020' 1  underlines that ICAO should act to effectively regulate emissions from international aviation before the end of 2016. Despite the technological improvements, the potential for reduction of the overall emissions is limited in the aviation sector and market-based measures have therefore been recognised as a suitable measure to allow aviation to contribute to overall emission reductions. At the 38th Session of the ICAO Assembly (2013), it was decided to develop a single global market-based measure addressing international aviation emissions with a view to taking a decision by the 39th Session of the ICAO Assembly in 2016 (27th September to 7th October) for the implementation of the scheme from 2020 2

It is therefore necessary to adopt, as soon as possible and well ahead of the next ICAO Assembly, the position that Member States, acting jointly in the interest of the EU, should abide by with regard to the decision to be taken by ICAO.

The position taken by the Union shall be expressed by the Commission and the Member States in ICAO bodies. The development of a proposal for such a instrument involves multiple ICAO bodies, including the ICAO Council. It is also necessary to adopt an EU position to ensure consistency with existing EU law.

Consistency with existing policy provisions in the policy area

Decision 1600/2002/EC of the European Parliament and of the Council called for the Union to identify and undertake specific actions to reduce greenhouse gas emissions from aviation if no such action were agreed within ICAO by 2002. Following a decision by the 33rd Session of the ICAO Assembly (2001) to endorse an open emissions trading system for international aviation 3 and by the 35th Session of the ICAO Assembly (2004) to develop guidance on the incorporation of emissions from international aviation into ICAO Contracting States' emissions trading schemes 4 , the European Parliament and the Council adopted Directive 2008/101/EC which amended Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading so as to include aviation activities. 5

In addition to deciding to develop a global market-based measure, the 38th Session of the ICAO Assembly (2013) resolved that ICAO and its member States, with relevant organisations, would work together to strive to achieve a collective medium term global aspirational goal of keeping the global net carbon emissions from international aviation from 2020 at the same level. International aviation emissions are projected to be around 70% higher in 2020 than in 2005 6 and the Union and its Member States have consistently advocated that the global reduction target for greenhouse gas emissions from international aviation should be a 10% reduction by 2020 compared to 2005 levels. However, it appears expedient for the Union to seize the opportunity to promote the development, within a rather short time frame, of a global market-based measure to limit greenhouse gas emissions from international aviation to their levels in 2020, bearing in mind the possibility to review the targets over time, as appropriate.

In order to facilitate progress at the 39th Session of the ICAO Assembly (2016) towards an appropriate instrument, the Union legislators decided to temporarily consider the requirements of Directive 2003/87/EC to be satisfied in respect of flights to and from aerodromes in countries outside the European Economic Area (EEA) 7 . Following the 39th Session of the ICAO Assembly (2016) the Commission shall report to the European Parliament and to the Council on actions to implement an international instrument on a global market-based measure from 2020 that will reduce greenhouse gas emissions from international aviation in a non-discriminatory manner. In this report, the Commission shall consider, and, if appropriate, include proposals in reaction to, those developments on the appropriate scope for coverage of emissions from activity to and from aerodromes located in countries outside the EEA from 1 January 2017 onwards.

Consistency with other Union policies

The proposed Decision is consistent with and complements other policies of the Union, notably energy, environmental and transport policies 8 .

 A global clean energy transition will require changes in business and investment behaviour and incentives across the entire policy spectrum.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The proposal is made under Article 192(1), together with Article 218(9) TFEU.

Article 218(9) TFEU lays down the procedure for the establishment of positions on the Union's behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects.

In this case, the act expected to be adopted by the ICAO Assembly will have the legal effects indicated in Article 28a of Directive 2003/87/EC.

In accordance with Article 192(1) and 191 TFEU, the European Union shall contribute to the pursuit, inter alia, of the following objectives: preserving, protecting and improving the quality of the environment; promoting measures at international level to deal with regional or worldwide environmental problems, and in particular combating climate change.


Choice of the instrument

Article 218(9) TFEU provides for a Council Decision as the applicable instrument.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Not applicable

4. BUDGETARY IMPLICATIONS

The proposal has no implication for the European Union budget.

5. OTHER ELEMENTS

Not applicable.