Aviation (Amendment) Regulations, 2019

L.N. 267 of 2019

MALTA RESOURCES AUTHORITY ACT

(CAP. 423)

European Union Greenhouse Gas Emissions Trading Scheme for

Aviation (Amendment) Regulations, 2019

IN EXERCISE of the powers conferred by article 28 of the Malta

Resources Authority Act, the Minister for the Environment,

Sustainable Development and Climate Change, after consultation with

the Malta Resources Authority, has made the following regulations:-

The title of these regulations is the European Union

Greenhouse Gas Emissions Trading Scheme for Aviation

(Amendment) Regulations, 2019 and these regulations shall be read

and construed as one with the European Union Greenhouse Gas

Emissions Trading Scheme Regulations, hereinafter referred to as "the

principal regulations".

The main title of the principal regulations shall be

substituted by the following

"EUROPEAN UNION GREENHOUSE GAS EMISSIONS

TRADING SYSTEM FOR AVIATION REGULATIONS".

Regulation 1 of the principal regulations shall be

substituted by the following

"1. (1) The title of these regulations is the European

Union Greenhouse Gas Emissions Trading System for Aviation

Regulations".

(2) These regulations provide for the implementation in

Malta of the European Union system for greenhouse gas

emissions allowance trading, established by Directive 2003/87/

EC, for activities listed in Schedule 1 to these regulations, for the

period commencing 1st January, 2013, and any subsequent

periods.

(3)

These regulations transpose

-

Directive 2003/87/EC;

-

Directive 2004/101/EC amending Directive

2003/87/EC;

-

Directive 2008/101/EC amending Directive

2003/87/EC;

-

Directive

2009/29/EC

amending

Directive

2003/87/EC;

-

Decision (EU) 2015/1814 amending Directive

2003/87/EC;

-

Regulation

(EU)

2017/2392

amending

Directive 2003/87/EC; and

-

Directive (EU) 2018/410 amending Directive

2003/87/EC.".

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a) immediately after the definition "confidential

information", there shall be added the following new definition

" "Decision (EU) 2015/1814" means Decision (EU)

2015/1814 of the European Parliament and of the Council

of 6 October 2015 concerning the establishment and

operation of a market stability reserve for the Union

greenhouse gas emission trading scheme and amending

Directive 2003/87/EC;";

(b) the definition "Directive 2003/87/EC" shall be

substituted by the following

" "Directive 2003/87/EC" means Directive 2003/87/

EC of the European Parliament and of the Council of 13

October 2003 establishing a system for greenhouse gas

emission allowance trading within the Union and amending

Council Directive 96/61/EC;";

(c) immediately after the definition "Directive 2003/87/

EC" there shall be added the following new definition

" "Directive 2004/101/EC" means Directive 2004/

101/EC of the European Parliament and of the Council of

27 October 2004 amending Directive 2003/87/EC

establishing a scheme for greenhouse gas emission

allowance trading within the Community, in respect of the

Kyoto Protocol’s project mechanisms;";

(d) immediately after the definition "Directive 2009/29/

EC", there shall be added the following new definition

" "Directive (EU) 2018/410" means Directive (EU)

2018/410 of the European Parliament and of the Council of

14 March 2018 amending Directive 2003/87/EC to enhance

cost-effective emission reductions and low-carbon

investments, and Decision (EU) 2015/1814;";

(e) immediately after the definition "emission reduction

unit", there shall be added the following new definitions

" "EU ETS" means the European Union Emissions

Trading System established by Directive 2003/87/EC;

"Eurocontrol" means the European Organisation for

the Safety of Air Navigation;";

(f) immediately after the definition "Regulation (EU) No

421/2014", there shall be added the following new definition

" "Regulation (EU) 2017/2392" means Regulation

(EU) 2017/2392 of the European Parliament and of the

Council of 13 December 2017 amending Directive 2003/

87/EC to continue current limitations of scope for aviation

activities and to prepare to implement a global market-

based measure from 2021;";

(g) immediately after the definition "surrender", there

shall be added the following new definition

" "tonne of carbon dioxide equivalent" means one

metric tonne of carbon dioxide (CO 2 ) or an amount of any

other greenhouse gas listed in Schedule 2 with an

equivalent global-warming potential;".

Sub-regulation (3) of regulation 7 the principal regulations

shall be substituted by the following

"(3) The aircraft operator for which tonne-kilometre data

is to be verified shall notify the Authority and the National

Accreditation Board – Malta of the planned date and place of the

verification and the identity of the verifier who will perform the

verification, by not later than thirty days prior to the date when

the verification is to be performed.".

Sub-regulation (2) of regulation 8 the principal regulations

shall be substituted by the following

"(2) The Authority shall, on the basis of the information

included in the tonne-kilometre data report submitted in

accordance with regulations 4 or 5 and the verification report

submitted in accordance with regulation 7 and its own checks,

without undue delay, determine whether it can accept the

submitted tonne-kilometre data report. The Authority shall not

accept a tonne-kilometre data report which has not been verified

as satisfactory or for which a verification report has not been

submitted. The Authority shall inform the aircraft operator, in

writing or through other documented means, of its decision.".

Regulation 11 of the principal regulations shall be amended Amends

regulation 11 of

as follows

the principal

regulations.

(a) sub-regulation (1) thereof shall be substituted by the

following

"(1) The Authority shall, by 28th February of each

year, issue the quantity of free Chapter II allowances that

are to be allocated for that year to each aircraft operator as

determined in accordance with regulation 4 or regulation

5.";

(b) sub-regulation (3) thereof shall be substituted by the

following

"(3) Chapter II allowances issued in accordance

with sub-regulation (1) in respect of the period beginning

1st January, 2013 and subsequent periods shall be valid

indefinitely. Allowances issued as from 1st January, 2021

in a ten-year period shall be valid for emissions from the

first year of that period onwards.";

(c) sub-regulation (4) thereof shall be substituted by the

following

"(4) Where, an aircraft operator ceases performing

an aviation activity listed in Schedule 1, the Authority shall

inform the national registry administrator. The national

registry administrator shall ensure that no further free

Chapter II allowances are issued to that aircraft operator for

the first year after the year when the aircraft operator ceases

performing an aviation activity listed in Schedule 1 and for

any subsequent year when the aircraft operator does not

perform an aviation activity listed in Schedule 1. Where, an

aircraft operator starts performing again an aviation activity

listed in Schedule 1, the Authority shall inform the national

registry administrator. The national registry administrator

shall ensure that free Chapter II allowances determined in

accordance with regulation 4 or 5 are issued for the first

year after the year when the aircraft operator starts

performing again an aviation activity listed in Schedule 1

and for any subsequent year when the aircraft operator

performs an aviation activity listed in Schedule 1."; and

(d)

sub-regulations (5) and (6) thereof shall be deleted.

Regulation 12 of the principal regulations shall be amended

as follows

(a) sub-regulation (1) thereof shall be substituted by the

following

"(1) An aircraft operator shall submit to the

Authority a monitoring plan setting out measures to

monitor and report emissions of greenhouse gases specified

in respect of aviation activities in Schedule 1. A monitoring

plan shall be submitted by an aircraft operator to the

Authority as early as possible before the aircraft operator

commences aviation activities listed in Schedule 1

Provided that, where an aircraft operator performs an

aviation activity listed in Schedule 1 for the first time that

could not be foreseen before the activity has taken place, a

monitoring plan shall be submitted to the Authority without

undue delay after the performance of that activity or within

a time-frame as may be agreed upon between the aircraft

operator and the Authority

Provided further that, where an aircraft operator for

whom Malta is designated as the administering Member

State pursuant to regulation 3, after it performs an aviation

activity listed in Schedule 1 for the first time, a monitoring

plan shall be submitted to the Authority without undue

delay after Malta is designated as the administering

Member State for that aircraft operator or within a time-

frame as may be agreed upon between the aircraft operator

and the Authority."; and

(b) sub-regulation (7) thereof shall be substituted by the

following

"(7) An aircraft operator shall regularly check if the

approved monitoring plan reflects the nature and function

of the aircraft operator and submit to the Authority

proposed modifications that have to be made to the plan, as

appropriate.".

Regulation 13 of the principal regulations shall be amended Amends

regulation 13 of

as follows

the principal

regulations.

(a) sub-regulation (2) thereof shall be substituted by the

following

"(2) An aircraft operator shall submit to the

Authority an annual report on the emissions from an

aviation activity listed in Schedule 1 for each year when

such an activity is performed by not later than 31st March

of the subsequent year.";

(b) sub-regulation (3) thereof shall be substituted by the

following

"(3) The report submitted by an aircraft operator

pursuant to sub-regulation (2) shall be verified by a verifier

in accordance with

(a)

the principles set out in Schedule 4; and,

(b) relevant decisions and regulations

adopted by the Commission pursuant to Directive

2003/87/EC; and.

(c) any other requirements made by the

Authority in respect of verification of annual

emission reports for emissions from aviation

activities.

The verifier shall issue a verification report.";

(c) sub-regulation (4) thereof shall be substituted by the

following

"(4) A verification report shall be submitted by the

aircraft operator to the Authority with an annual emissions

report submitted. The operator shall also enter the amount of

emissions reported in the verified annual emissions report for

a monitoring year into the Union Registry, by 31st March of

the subsequent year."; and

(d) sub-regulation (6) thereof shall be substituted by the

following

"(6) The aircraft operator for which an annual

emissions report is to be verified shall notify the Authority

and the National Accreditation Board – Malta of the

planned date and place of the verification and the identity

of the verifier who will perform the verification, by not

later than thirty days prior to the date when the verification

is to be performed.".

Regulation 14 of the principal regulations shall be amended

as follows

(a) sub-regulation (2) thereof shall be substituted by the

following

"(2) The Authority shall, on the basis of the

information included in the annual emissions report and the

verification report submitted in accordance with regulation

13 and its own checks, without undue delay, determine

whether it can accept the submitted annual emissions

report. The Authority shall not accept a report of annual

emissions which has not been verified as satisfactory or for

which a verification report has not been submitted. The

Authority shall inform the aircraft operator, in writing or

through other documented means, of its decision. Where it

deems necessary, the Authority may require the submission

of a revised annual emissions report. The revised annual

emissions report shall be verified in accordance with

regulation 13. Where necessary, the aircraft operator shall

update the amount of emissions entered into the Union

Registry.";

(b) sub-regulation (3) thereof shall be substituted by the

following

"(3) Where, in respect of any monitoring year, an

aircraft operator does not submit a verified annual

emissions report in accordance with regulation 13, or where

it is deemed that the aircraft operator has not submitted an

annual emissions report which is in accordance with the

requirements set out in regulation 13, the Authority may,

unless there is written agreement between the Authority

and the aircraft operator providing otherwise, itself

determine the emissions for aviation activities performed

by that aircraft operator for that monitoring year. The

Authority shall use best available data and ensure that a

conservative estimate is made that does not underestimate

emissions. When annual emissions are determined under

this sub-regulation, the Authority shall consider the

requirements set out in Schedules 3 and 4

Provided that the Authority shall notify the aircraft

operator of the emissions as determined and the

methodology used to determine such emissions

Provided further that the Authority shall enter the

amount of emissions as determined in accordance with this

sub-regulation into the Union Registry."; and

(c) immediately after sub-regulation (3) thereof, there

shall be added the following new sub-regulations

"(4) Where the verification report submitted with an

annual emissions report states outstanding non-

conformities or recommendations for improvements, the

aircraft operator shall submit to the Authority, by not later

than 30th June of the year when the verification report is

issued by the verifier, an improvement report describing

how and when the aircraft operator has rectified or plans to

rectify the non-conformities identified by the verifier and to

implement recommended improvements.

(5) The Authority shall, within a reasonable time,

approve the improvement report and inform the aircraft

operator of its approval. Where it deems necessary, the

Authority may require the submission of a revised

improvement report.".

11 Regulation 16 of the principal regulations shall be amended Amends

regulation 16 of

as follows

the principal

regulations.

(a) sub-regulation (1) thereof shall be substituted by the

following

"(1) For the period ending 31st December, 2020, and

subsequent periods, an aircraft operator shall, by 30th April

each year, surrender a number of allowances that is equal to

the total emissions from aviation activities listed in

Schedule 1 during the preceding calendar year as verified

in accordance with regulation 13, or as determined by the

Authority in accordance with regulation 14.";

(b)

in sub-regulation (2) thereof the words "under sub-

regulation (1)." shall be substituted by the words "under sub-

regulation (1);" and immediately after there shall be added the

following new proviso

"Provided where necessary, and for as long as is

necessary, in accordance with relevant decisions and

regulations adopted by the Commission pursuant to

Directive 2003/87/EC, an aircraft operator shall not

surrender allowances that are issued by a Member State in

respect of which there are obligations arising from

Directive 2003/87/EC which are lapsing.".

Ir-regolament 16 tar-regolamenti prinċipali għandu jiġi Jemenda r-

regolament 16

emendati kif ġej

tar-regolamenti

prinċipali.

(a) is-subregolament (1) tiegħu għandu jiġi sostitwit

b’dan li ġej

"(1) Għall-perjodu li jispiċċa fil-31 ta’ Diċembru,

2020, u perjodi sussegwenti, l-operatur ta’ inġenji tal-ajru

għandu, mat-30 ta’ April ta’ kull sena, iċedi għadd ta’

permessi ugwali għall-emissjonijiet totali minn attivitajiet

tal-avjazzjoni mniżżla fl-Iskeda 1 matul is-sena kalendarja

preċedenti kif verifikati kif previst fir-regolament 13, jew

kif stabbilit mill-Awtorità skont ir-regolament 14."; u

(b) fis-subregolament (2) tiegħu l-kliem "u tal-ajru skont

is-subregolament (1)." għandhom jiġu sostitwiti bil-kliem "u tal-

ajru skont is-subregolament (1):" u minnufih wara għandu

jiżdied il-proviso ġdid li ġej:, għandu jiżdied is-subregolament

ġdid li ġej

"Iżda meta jkun neċessarju, u sakemm jibqa’

neċessarju, kif previst f’deċiżjonijiet u regolamenti

rilevanti adottati mill-Kummissjoni skont id-Direttiva

2003/87/KE, operatur ta’ inġenji tal-ajru ma għandux iċedi

permessi maħruġa minn Stat Membru li fir-rigward

tagħhom ikun hemm obbligi li joħorġu mid-Direttiva 2003/

87/KE li mhux qed jitwettqu.".

Regulation 23 of the principal regulations shall be

substituted by the following

"23. The revenue from the auctioning of allowances, after

deducting the audited costs to administer the EU ETS agreed

between the Minister responsible for finance and the Authority,

shall accrue to the consolidated fund.".

Regulation 24A of the principal regulations shall be

amended as follows

(a) sub-regulation (1) thereof shall be substituted by the

following

"(1) Without prejudice to the generality of these

regulations and by way of derogation from regulations 12,

13, 14, 15 and 16, the Authority shall consider the

requirements set out in those regulations to be satisfied and

shall not take action against aircraft operators in respect of

(a) all emissions from flights to and from

aerodromes located in countries outside the European

Economic Area in each calendar year from 1st

January, 2013 to 31st December, 2023;

(b) all emissions from flights between an

aerodrome located in an outermost region within the

meaning of Article 349 of the Treaty on the

Functioning of the European Union and an aerodrome

located in another region of the European Economic

Area in each calendar year from 1st January, 2013 to

31st December, 2023.";

(b)

sub-regulation (4) thereof shall be deleted; and

(c) immediately after sub-regulation (5) thereof, there

shall be added the following new sub-regulations

"(6) By way of derogation from regulations 12, 13

and 14, where an aircraft operator has total annual

emissions from aviation activities listed in Schedule 1

lower than twenty five thousand (25,000) tonnes of carbon

dioxide, its emissions shall be considered to be verified

emissions if determined using a tool approved in

accordance with relevant decisions and regulations adopted

by the Commission pursuant to Directive 2003/87/EC and

populated by Eurocontrol with Eurocontrol data.

(7) By way of derogation from regulations 12, 13

and 14, where an aircraft operator has total annual

emissions from flights other than those referred to in sub-

regulation (1) lower than three thousand (3,000) tonnes of

carbon dioxide, its emissions shall be considered to be

verified if determined using a tool approved in accordance

with relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/87/EC and

populated by Eurocontrol with Eurocontrol data.".

(8) From 1st January, 2021, the number of

allowances allocated to an aircraft operator in accordance

with regulation 4 or regulation 5 shall, each year, decrease

by a linear factor of 2.2%.

(9) By way of derogation from regulation 4(1) and

regulation 5(1), regulations 4 and 5 shall not be applicable

for the period beginning 1st January, 2021.".

Schedule 1 to the principal regulations shall be amended as Amends

Schedule 1 of

the principal

regulations.

(a)

point (j) thereof shall be substituted by the following

"(j) flights which, but for this exclusion, would fall

within the definition of aviation activity as listed here,

performed by a commercial air transport operator operating

either

-

fewer than 243 flights per period for three

consecutive four-month periods; or

-

flights with total annual emissions lower

than 10,000 tonnes per year

Provided that flights performed exclusively for the

transport, on official missions, of a reigning Monarch and

his immediate family, Heads of State, Heads of

Government and Government, of a Member State may not

be excluded under this point."; and

(b)

point (k) thereof shall be substituted by the following

"(k) from 1 December 2013 to 31 December 2030,

flights which, but for this point, would fall within this

activity, performed by a non-commercial aircraft operator

operating flights with total annual emissions lower than

1,000 tonnes of carbon dioxide equivalent per year.".

€0.99