- November 15 2012
EU Climate Commissioner Connie Hedegaard announced on Monday a 12 month suspension of the EU Emissions Trading Scheme (EU ETS) for flights to and from Europe.
- September 17 2012
Nine months have elapsed since aviation was included in the European Emissions Trading System (EU ETS). Most airlines have now met their initial compliance obligations and have submitted a Monitoring and Reporting Plan and Emissions Reports for 2010 and 2011. Even most airlines domiciled in countries that are opposed to inclusion in the EU ETS are currently compliant and entitled to receive free EU aviation emissions allowances (EUAAs).
- June 18 2012
The EU ETS has created an additional credit risk exposure for aircraft lessors and financiers that may result in tens if not hundreds of millions of Euros additional financial liabilities to individual airlines. This exposure could also potentially result in systemic risk for some aircraft lessors, banks and export credit agencies.
- May 14 2012
Some, but not all new aircraft finance and lease agreements contain a document referred to as an EU ETS Authority Letter. The form of the letter comes in various guises but each Letter of Authority is intended to have the same effect. That is to allow the aircraft owner, be it a lessor, mortgagee or its agent to monitor an aircraft operator’s performance obligations under the EU Emissions Trading Scheme (EU ETS).
- April 13 2012
Should an aircraft lessor, SPC or mortgagee be named on the EU list of aircraft operators, it will generally have the same EU ETS compliance obligations as an airline. A number of aircraft owners are currently named on the EU list of aircraft operators as having performed flight activities recorded by Eurocontrol, usually where aircraft have been repossessed, ferried or repositioned. The EU ETS Directive also clearly states that the aircraft owner has responsibility for compliance where the actual operator of flight activities cannot be identified.
- March 26 2012
There is a widespread misconception that the mechanics of the European Emissions Trading Scheme (EU ETS) are broadly similar to Eurocontrol charges.