EUROPEAN UNION GREENHOUSE GAS EMISSIONS TRADING SYSTEM FOR AVIATION REGULATIONS *

SUBSIDIARY LEGISLATION 423.51

EUROPEAN UNION GREENHOUSE GAS EMISSIONS

TRADING SYSTEM FOR AVIATION REGULATIONS *

16th November, 2012

LEGAL NOTICE 403 of 2012, as amended by Legal Notices 97 of 2013

114 of 2015 and 267 of 2019.

(1) The title of these regulations is the European Union

G r e e n h o u s e G a s E m i s s i o n s Tr a d i n g S y s t e m f o r Av i a t i o n

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.

For the purposes of these regulations and unless the

context otherwise requires, the following definitions shall apply

"account holder" means a natural or legal person that holds an

account in the Union registry;

"aerodrome" means a defined area on land or water, including

buildings, installations and equipment, intended to be used either

wholly or in part for the arrival, departure and surface movement of

aircraft;

"aircraft operator" means the person who operates an aircraft at

the time it performs an aviation activity listed in Schedule 1 or,

where that person is not known or is not identified by the owner of

the aircraft, the owner of the aircraft;

"air service" means a flight or a series of flights carrying

*These regulations have been transferred to Cap. 643. Vide S.L. 643.03 and Act XVI

of 2024.

passengers, cargo and, or, mail for remuneration and, or, hire as

defined in Article 2(4) of Regulation (EC) No. 1008/2008;

"allowance" means an allowance to emit one tonne of carbon

dioxide equivalent during a specified period, which shall be valid

only for the purposes of meeting the requirements of these

regulations and shall be transferable in accordance with the

provisions of these regulations;

"auctioneer" means the Debt Management Office within the

Treasury Department appointed by the Government to auction

allowances on its behalf;

"authorised representatives" means the representatives,

nominated by an account holder in respect of an account in the

Union registry, to have access to that account and undertake

processes relating to that account on behalf of the account holder;

"the Authority" means the Malta Resources Authority

established by article 3 of the Malta Resources Authority Act;

"aviation emissions" or "emissions" means the release of

greenhouse gases into the atmosphere from an aircraft performing

an aviation activity listed in Schedule 1, as specified in respect of

that activity;

"base year" means, for the purposes of regulation 3(b), in

relation to an aircraft operator which started operating in the Union

after 1 st January 2006, the first calendar year of operation, and in

all other cases, the calendar year starting on 1 st January 2006;

"cancellation" means the definitive disposal of an allowance by

its holder or by the national registry administrator as may be

applicable;

"certified emission reduction" or "CER" means a unit issued

pursuant to Article 12 of the Kyoto Protocol and the decisions

adopted pursuant to the UNFCCC or the Kyoto Protocol;

"Chapter II allowance" means an allowance allocated and issued

in respect of aviation activities listed in Annex I to Directive 2003/

87/EC, in accordance with Chapter II of Directive 2003/87/EC;

"Chapter III allowance" means an allowance allocated and issued

in respect of activities listed in Annex I to Directive 2003/87/EC

other than aviation activities, in accordance with Chapter III of

Directive 2003/87/EC;

"commercial air transport operator" means an operator that, for

remuneration, provides scheduled or non-scheduled air transport

services to the public for the carriage of passengers, freight or mail;

"the Commission" means the European Commission;

"confidential information" means any non-public information

deemed to be sensitive by the operator and, or any privileged

information falling within the scope of regulation 16, shared only

for promoting and elaborating certain purposes. It shall include

inter alia

(a) trade secrets;

(b) any other information having a commercial value that

would be, or could reasonably be expected to be,

destroyed or diminished if the information were

disclosed; or

(c) information other than trade secrets or information

under paragraph (b) concerning a person, organisation

or undertaking in respect of their business,

professional, commercial or financial affairs;

"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;

"deviation" means, in respect of monitoring of tonne-kilometre

data and annual emissions, the use of a monitoring approach that is

different, in full or in part, from the approved monitoring and

reporting plan, which use is of a temporary nature;

"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;

"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;

"Directive 2008/101/EC" means Directive 2008/101/EC of the

European Parliament and of the Council of 19 November 2008

amending Directive 2003/87/EC so as to include aviation activities

in the scheme for greenhouse gas emission allowance trading

within the Community;

"Directive 2009/29/EC" means Directive 2009/29/EC of the

European Parliament and of the Council of 23 April 2009 amending

Directive 2003/87/EC so as to improve and extend the greenhouse

gas emission allowance trading scheme of the Community;

"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;

"emissions reduction unit" or "ERU" means a unit issued

pursuant to Article 6 of the Kyoto Protocol and the decisions

adopted pursuant to the UNFCCC or the Kyoto Protocol;

"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;

"flight" means one flight sector that is a flight or one of a series

of flights which commences at a parking place of the aircraft and

terminates at a parking place of the aircraft;

"greenhouse gases" means the gases listed in Schedule 2 and

other gaseous constituents of the atmosphere, both natural and

anthropogenic, that absorb and re-emit infrared radiation;

"Joint Implementation project activity" or "JI project activity"

means a project activity undertaken in accordance with Article 12

of the Kyoto Protocol and decisions adopted pursuant to the

UNFCCC or the Kyoto Protocol;

"Kyoto Protocol" means the Kyoto Protocol to the UNFCCC;

"Least Developed Countries" means those countries included in

the list of Least Developed Countries as defined by the Committee

for Development Policy and endorsed by the Economic and Social

Council of the United Nations;

" M e m b e r St a t e " m e a n s a s t a t e w h i c h i s a m em b e r o f t h e

European Union and shall also include Iceland, Liechtenstein and

Norway;

"the Minister" means the Minister responsible for climate change

policy;

"modification" means, in respect of monitoring of tonne-

kilometre data and annual emissions, a permanent change in an

approved monitoring plan, in full or in part, and, where deemed to

be of a significant nature, shall require the approval of the

Authority before it shall become valid;

"National Accreditation Board (Malta)" means the National

Accreditation Board (Malta) established by the National

Accreditation Board (Malta) (Establishment) Regulations;

"national registry administrator" means the entity, designated in

accordance with relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/87/EC, being responsible

for the management, on behalf of the Government, of aircraft

operator holding accounts under the jurisdiction of the Government

in the Union registry;

"operating license" means an authorization granted by a relevant

competent licencing authority to an undertaking, permitting it to

provide air services as stated in the operating licence;

"other accounting units" means units other than allowances, and

including CERs and ERUs, which may be used by aircraft operators

for the purpose of meeting obligations under these regulations in

accordance with these regulations and relevant decisions and

regulations adopted by the Commission pursuant to Directive 2003/

87/EC;

"other relevant legal bodies" means any other entities, public or

private which, by virtue of the provisions found in these regulations

are obliged to act, provide information, direct or re-direct any

action or actions, or inform or report to any other indicated body.

This shall also include any other specified bodies or persons to

which these regulations may apply;

"person" means any natural or legal person;

"the public" means one or more persons and associations,

organisations or groups of persons;

"Regulation (EC) No. 765/2008" means Regulation (EC) No.

765/2008 of the European Parliament and of the Council of 9 July

2008 setting out the requirements for accreditation and market

surveillance relating to the marketing of products and repealing

Regulation (EEC) No. 339/93;

"Regulation (EC) No. 1008/2008" means Regulation (EC) No.

1008/2008 of the European Parliament and of the Council of 24

September 2008 on common rules for the operation of air services

in the Community (Recast);

"Regulation (EC) No. 748/2009" means Commission Regulation

(EC) No 748/2009 of 5 August 2009 on the list of aircraft operators

which performed an aviation activity listed in Annex I to Directive

2003/87/EC on or after 1 January 2006 specifying the

administering Member State for each aircraft operator;

"Regulation (EU) No. 421/2014" means Regulation (EU) No

421/2014 of the European Parliament and of the Council of 16

April 2014 amending Directive 2003/87/EC establishing a scheme

for greenhouse gas emission allowance trading within the

C o m m u n i t y, i n v i e w o f t h e i m p l e m e n t a t i o n b y 2 0 2 0 o f a n

international agreement applying a single global market-based

measure to international aviation emissions;

"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;

"surrender" means the accounting of an allowance by an aircraft

operator against verified emissions;

"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;

"Union" and "European Union" shall have the same meaning of

"the European Union" as in the European Union Act;

"Union registry" means the registry established and maintained

in accordance with Article 19 of Directive 2003/87/EC for the

execution of processes pertaining to the maintenance of holding

a c c o un t s a n d t h e a l l o c a t i o n , s u r r e n d e r a n d c a n c e l l a t i o n o f

allowances;

"UNFCCC" means the United Nations Framework Convention

on Climate Change which entered into force on 21 st March, 1994;

"verifier" means a legal person or another legal entity carrying

out verification activities pursuant to these regulations and

accredited by a national accreditation body pursuant to Regulation

(EC) No 765/2008 and relevant decisions and regulations adopted

by the Commission pursuant to Directive 2003/87/EC, or natural

person otherwise authorised, without prejudice to Article 5(2) of

Regulation (EC) 765/2008, at the time a verification report is

issued.

EUROPEAN UNION GREENHOUSE GAS EMISSIONS

TRADING SYSTEM FOR AVIATION

These regulations shall apply to

(a) aircraft operators performing aviation activities listed

in Schedule 1, resulting in emissions of greenhouse

gases specified in respect of those activities, and

(i) who have a valid operating licence granted by

Malta in accordance with the provisions of

Regulation (EC) No. 1008/2008; or

(ii) for whom Malta, being the Member State with

the greatest estimated attributed aviation

emissions from aviation activities as listed in

Schedule 1 performed in the base year by those

aircraft operators, has been designated as the

administering Member State either in Regulation

(EC) No 748/2009, or by means of any measure

taken by the Commission pursuant to Directive

2003/87/EC or by the Authority in terms of these

regulations; and

(b) to any other relevant legal bodies on which these

regulations put any obligation.

For the period from 1 st January, 2012 to 31 st

(1)

December, 2012, for the eight-year period beginning 1 st January,

2013, and for each subsequent period thereafter, an aircraft

operator may apply for an allocation of Chapter II allowances that

are to be allocated free of charge.

(2) An application made by an aircraft operator pursuant to

sub-regulation (1) may be made by submitting to the Authority

verified tonne-kilometre data for the aviation activities listed in

Schedule 1 performed by that aircraft operator for the monitoring

year. For the purposes of this regulation

(a) the monitoring year for the period from 1 st January,

2012 to 31 st December, 2012 shall be 2010;

(b) the monitoring year for the period beginning 1 st

January, 2013 shall be 2010; and

(c) the monitoring year for subsequent periods shall be the

calendar year ending twewnty-four months before the

start of the period to which the application relates.

(3) An application made in terms of sub-regulation (1) shall be

submitted to the Authority

(a) in relation to the period from 1 st January, 2012 to 31 st

December, 2012, by the 31 st March, 2011;

(b) in relation to the period beginning 1 st January, 2013,

by 31 st March, 2011;

(c) in relation to subsequent periods, by at least twenty-

one months before the start of the period to which the

application relates.

(4)

The Authority shall submit to the Commission any

application received pursuant to sub-regulation (1), if it is satisfied

that the application is in accordance with the provisions of this

regulation and that the aircraft operator who submitted the

application has complied with regulations 6 and 7.

(5) The Authority shall submit to the Commission any

application pursuant to sub-regulation (4)

(a) in relation to the period from 1 st January 2012 to the

31 st December, 2012, by 30 th June, 2011;

(b) in relation to the period beginning 1 st January, 2013,

by 30 th June, 2011;

(c) in relation to subsequent periods, by at least eighteen

months before the start of the period to which the

application relates.

(6) Pursuant to a decision adopted by the Commission pursuant

to Directive 2003/87/EC setting out the benchmark for a period to

be used to allocate Chapter II allowances free of charge to aircraft

operators for the period to which such a decision relates, the

Authority shall, within three months of such a decision, calculate

and publish

(a) the total allocation of Chapter II allowances for such

period, to each aircraft operator whose application it

has submitted to the Commission, in accordance with

sub-regulation (4), calculated by multiplying the

tonne-kilometre data included in the application by the

benchmark set out in the Commission decision; and

(b) the allocation of Chapter II allowances to each aircraft

operator for each year, which shall be determined by

dividing its total allocation of allowances for the

period calculated under paragraph (a) by the number

of years in the period for which that aircraft operator is

performing an aviation activity listed in Schedule 1.

(1) For the period beginning 1 st January, 2013 or a

subsequent period, an aircraft operator may apply for a free

allocation of Chapter II allowances from the special reserve set

aside pursuant to Article 3(f) of Directive 2003/87/EC as amended

by Directive 2008/101/EC. An application for a free allocation

from the special reserve may be made by an aircraft operator

(a) who starts performing an aviation activity falling

within Schedule 1 after the monitoring year for which

tonne-kilometre data had to be submitted in respect of

the period beginning 1 st January, 2013 or a subsequent

period, where such activity is not, in whole or in part,

a continuation of an aviation activity previously

performed by another aircraft operator; or

(b) whose tonne-kilometre data increases by an average of

more than 18% annually between the monitoring year

for which tonne-kilometre data was submitted under

regulation 4 in respect of the period beginning 1 st

January, 2013 or a subsequent period and the second

calendar year of that period, where such an increase in

tonne-kilometre data is not, in whole or in part, the

result of a continuation of an aviation activity

previously performed by another aircraft operator.

(2) An aircraft operator who is eligible under sub-regulation

(1) may apply for a free allocation of Chapter II allowances from

the special reserve by submitting an application to the Authority,

and such an application shall be made by the 30 th June of the third

year of the period to which the application relates.

(3)

An application under sub-regulation (2) shall

(a) include verified tonne-kilometre data for the aviation

activities listed in Schedule 1 performed by the aircraft

operator in the second calendar year of the period to

which the application relates;

(b) provide evidence that the criteria for eligibility under

sub-regulation (1) are fulfilled; and

(c) in the case of an aircraft operator falling within sub-

regulation (1)(b), state

(i)

the percentage increase in tonne-kilometres

performed by that aircraft operator between the

monitoring year for which tonne-kilometre data

was submitted under regulation 4 in respect of

the period beginning 1 st January, 2013 or a

subsequent period and the second calendar year

of that period;

(ii) the absolute growth in tonne-kilometres

performed by that aircraft operator between the

monitoring year for which tonne-kilometre data

was submitted under regulation 4 in respect of

the period beginning 1 st January, 2013 or a

subsequent period and the second calendar year

of that period; and

(iii) the absolute growth in tonne-kilometres

performed by that aircraft operator between the

monitoring year for which tonne-kilometre data

was submitted under regulation 4 in respect of

the period beginning 1 st January, 2013 or a

subsequent period and the second calendar year

of that period which exceeds the percentage

specified in sub-regulation (1)(b).

(4) The Authority shall submit to the Commission any

application received pursuant to sub-regulation (2), if it is satisfied

that the application is in accordance with this regulation and that

the aircraft operator who submitted the application has complied

with regulations 6 and 7. The Authority shall submit any such

application by not later than the 31 st December of the third year of

the period to which the application relates.

(5)

Pursuant to a decision adopted by the Commission setting

out the benchmark for a period to be used to allocate Chapter II

allowances free of charge from the special reserve to aircraft

operators for the period to which such a decision relates, the

Authority shall, within three months of such a decision, calculate

and publish

(a) the allocation of Chapter II allowances from the

special reserve to each aircraft operator whose

application it has submitted to the Commission in

accordance with sub-regulation (4); and

(b) the allocation of Chapter II allowances from the

special reserve to each aircraft operator for each year,

which shall be determined by dividing the allocation

as determined under paragraph (a) by the number of

calendar years remaining in the period to which the

allocation relates.

(6) The allocation of Chapter II allowances from the special

reserve to each aircraft operator in sub-regulation (5)(a) shall be

calculated by multiplying the benchmark set out in the Commission

decision referred to in sub-regulation (5) in the case of

(a) an aircraft operator falling within sub-regulation (1)(a)

whose application was submitted to the Commission

pursuant to sub-regulation (4), by the tonne-kilometre

data included in the application submitted to the

Commission;

(b) an aircraft operator falling within sub-regulation

(1)(b), whose application was submitted to the

Commission pursuant to sub-regulation (4), by the

absolute growth in tonne-kilometres exceeding the

percentage specified in sub-regulation (1)(b) included

in the application submitted to the Commission.

(7) An allocation to an aircraft operator eligible for an

allocation of Chapter II allowances under sub-regulation (1)(b)

shall not exceed one million Chapter II allowances.

(1)

An aircraft operator who intends to submit an

application for free Chapter II allowances pursuant to regulations 4

or 5 shall submit, to the Authority, a monitoring plan setting out

measures to monitor and report tonne-kilometre data from aviation

activities listed in Schedule 1. The plan shall be submitted by not

later than one hundred and twenty days before the start of the

monitoring year to which the monitoring plan relates, or by such

date as may be determined by the Authority.

(2)

The monitoring plan shall be in accordance with

(a) the principles set out in Schedule 3; 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 monitoring and reporting of tonne-kilometre

data for aviation activities.

(3)

The monitoring plan submitted by an aircraft operator

pursuant to sub-regulation (1) shall be approved by the Authority, if

it is satisfied that the plan is in accordance with the requirements of

this regulation. The Authority may request from the aircraft

operator any additional information it deems appropriate for the

approval of the plan.

(4) An aircraft operator shall notify the Authority of any

deviations from the monitoring plan that may occur at any time

after the approval of the plan

Provided that the Authority shall be notified of any

deviation from the plan

(a) as early as possible before the deviation occurs, if the

deviation is known by the operator or is made known

to the operator prior to its occurrence; or

(b) immediately after the deviation occurs if the

occurrence of the deviation is not known to the

operator or is not made known to the operator before

or at the time of its occurrence.

An aircraft operator shall maintain a documented record, which

shall include information in accordance with requirements that may

be established by the Authority, of any deviations that occur during

a monitoring year and shall submit such record to the Authority

together with the verified tonne-kilometre data submitted in respect

of that monitoring year pursuant to regulations 4 or 5.

(5) An aircraft operator may at any time after the approval of

the monitoring plan submit to the Authority proposed modifications

that have to be made to the plan, in accordance with the relevant

decisions and regulations adopted by the Commission pursuant to

Directive 2003/87/EC. The aircraft operator shall maintain a

documented record of all modifications to the monitoring plan. No

proposed significant modifications to an approved plan shall be

valid without the approval of the Authority.

(6) Where it deems appropriate, the Authority may request the

submission of a revised plan.

(7) Without prejudice to sub-regulation (4), an aircraft operator

s h a l l m o n it o r t o n ne - k i l om et r e d a t a i n a c c o r d a nc e w i t h t he

monitoring plan approved by the Authority in accordance with this

regulation.

(1) The tonne-kilometre data submitted by an aircraft

operator pursuant to regulations 4 or 5 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 tonne-kilometre data for

aviation activities.

(2) A verification report shall be submitted by the aircraft

operator to the Authority with a tonne-kilometre data report

submitted for the purposes of an application under regulations 4 or

5. (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.

(1) The Authority may perform any checks it deems

necessary to ensure that a tonne-kilometre data report submitted by

an aircraft operator is in accordance with regulations 6 and 7.

(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.

(3) Where it deems necessary, the Authority may require the

submission of a revised tonne-kilometre report. The revised tonne-

kilometre report shall be verified in accordance with regulation 7

except where otherwise decided by the Authority.

(1) The quantity of Chapter II allowances that are not

allocated free of charge, as determined for Malta in accordance

with Directive 2003/87/EC, shall be auctioned by the auctioneer in

accordance with the relevant decisions and regulations adopted by

the Commission pursuant to Directive 2003/87/EC.

(2) The auctioneer shall act in accordance with the relevant

decisions and regulations adopted by the Commission pursuant to

Directive 2003/87/EC.

(1) Chapter II allowances issued to aircraft operators in

terms of these regulations shall be held in the Union registry. An

aircraft operator shall have an aircraft operator holding account in

the Union registry.

(2) The Authority shall act as national registry administrator in

respect of aircraft operator holding accounts of aircraft operators to

which these regulations apply. The national registry administrator

shall perform its functions in accordance with relevant decisions

and regulations adopted by the Commission pursuant to Directive

2003/87/EC. The national registry administrator shall ensure that

there is no conflict of interest between itself and holders of aircraft

operator holding accounts.

(3) A request to open an aircraft operator holding account shall

be made by the Authority or the aircraft operator to the national

registry administrator.

(4)

A request for the opening of an aircraft operator holding

account shall include all information required by the national

registry administrator in accordance with the relevant decisions and

regulations adopted by the Commission pursuant to Directive 2003/

87/EC and any requirements and terms and conditions made by the

national registry administrator.

(5) The national registry administrator shall open and

administer an aircraft operator holding account for an aircraft

operator in accordance with the relevant decisions and regulations

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

any terms and conditions it may make. The national registry

administrator shall not open an account unless it is satisfied that the

request is in accordance with the requirements of this regulation.

(6) An account holder of an aircraft operator holding account

and its nominated authorised representatives shall act in accordance

w ith the r el evant decisions and reg ulatio ns adop ted by the

Commission pursuant to Directive 2003/87/EC and any terms and

conditions made by the national registry administrator.

(7) Where an aircraft operator fails to comply with any

requirements of decisions and regulations adopted by the

Commission in respect of registries or terms and conditions made

by the national registry administrator in respect of registries, the

natio nal registry adm inistrator may p revent the tran sfer of

allowances or other accounting units into and out of the aircraft

operator holding account held by that aircraft operator until non-

compliance is rectified

Provided that the national registry administrator shall not

prevent surrender or cancellation of allowances in accordance with

regulation 16.

(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.

(2) Each aircraft operator shall be issued Chapter II allowances

in accordance with sub-regulation (1) in the aircraft operator’s

holding account held in the Union registry.

(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.

(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.

(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.

(2)

The monitoring plan shall be in accordance with

(a) the principles set out in Schedule 3; 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 monitoring and reporting of emissions of

greenhouse gases from aviation activities.

(3) The monitoring plan submitted by an aircraft operator

pursuant to sub-regulation (1) shall be approved by the Authority, if

it is satisfied that the plan is in accordance with the requirements

set out under this regulation. The Authority may request from the

aircraft operator any additional information it deems appropriate

for the approval of the plan.

(4) An aircraft operator shall notify the Authority of any

deviations from the monitoring plan that may occur at any time

after the approval of the plan by the Authority

Provided that the Authority shall be notified of any

deviation from the plan

(a) as early as possible before the deviation occurs, if the

deviation is known to the operator or is made known to

the operator prior to its occurrence; or,

(b) immediately

after

the

deviation

occurs

if

the

occurrence of the deviation is not known to the

operator or is not made known to the operator before

or at the time of its occurrence.

An aircraft operator shall maintain a documented record, which

shall include information in accordance with requirements that may

be established by the Authority, of any deviations that occur during

a monitoring year and shall submit such record to the Authority

together with the annual emissions report submitted pursuant to this

regulation.

(5) An aircraft operator may at any time after the approval of

the monitoring plan submit to the Authority proposed modifications

that have to be made to the plan, in accordance with the relevant

decisions and regulations adopted by the Commission pursuant to

Directive 2003/87/EC. The aircraft operator shall maintain a

documented record of all modifications to the monitoring plan. No

proposed significant modifications to an approved plan shall be

valid without the approval of the Authority.

(6) Where it deems appropriate, the Authority may request the

submission of a revised plan.

(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.

(8)

An aircraft operator shall

from the monitoring year 1 st January, 2010 to 31 st

(a)

December, 2010 in the case of an aircraft operator for

whom Malta is identified as the administering Member

State before the start of that monitoring year; or

(b)

from the first monitoring year applicable to it in the

case of an aircraft operator for whom Malta is

identified as the administering Member State after the

beginning of the monitoring year 1 st January, 2010 to

31 st December, 2010,

monitor emissions from aircraft which it operates that perform

aviation activities listed in Schedule 1, during each monitoring

year.

(9) Without prejudice to sub-regulation (4), an aircraft operator

shall monitor annual emissions in accordance with the monitoring

plan approved by the Authority in accordance with this regulation.

The Authority may take any action it deems necessary under these

regulations to ensure that an aircraft operator is monitoring and

reporting annual emissions in accordance with the approved

monitoring plan.

(1) An aircraft operator shall report emissions, monitored

in accordance with regulation 12, for each monitoring year in

accordance with

(a) the principles set out in Schedule 3; 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 reporting of emissions of greenhouse gases

from aviation activities.

(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.

(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.

(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.

(5) Where an aircraft operator fails to submit an annual

emissions report for a monitoring year that has been verified as

satisfactory by 31 st March of the year subsequent to that

monitoring year, the national registry administrator shall not allow

the transfer of allowances or any other accounting units out of the

aircraft operator holding account of that aircraft operator until a

report from that aircraft operator for that monitoring year has been

verified as satisfactory

Provided that the national registry administrator shall not

prevent the surrender or cancellation of allowances in accordance

with regulation 16, or the issuance of allowances in exchange for

CERs or ERUs in accordance with regulations 17 or 18.

(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.

(1) The Authority may perform any checks it deems

necessary to ensure that a report submitted by an aircraft operator is

in accordance with regulation 13.

(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.

(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.

(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

w h e n t h e v e r i f i c a t i o n r e p o r t i s i s s u e d b y t h e v e r i f i e r, a n

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.

W h e r e i t d e e m s n e c e s s a r y, t h e A u t h o r i t y m a y r e q u i r e t h e

submission of a revised improvement report.

(1) An aircraft operator who fails to submit a monitoring

plan in accordance with regulation 12 in respect of the years 2010

and 2011, shall be liable to the imposition of an administrative fine

of five thousand euro (€5,000) and, or, one hundred euro (€100) for

each day of non-compliance, from the date of a notice given by the

Authority to the operator.

(2) An aircraft operator who fails to monitor annual emissions

in accordance with regulation 12 or fails to submit an annual

emissions report in accordance with regulation 13 in respect of the

years 2010 and 2011, shall be liable to the imposition of an

administrative fine of five thousand euro (€5,000) and, or, one

hundred euro (€100) for each day of non-compliance, from the date

of a notice given by the Authority to the operator.

(3) An aircraft operator who fails to submit a monitoring and

reporting plan in accordance with regulation 12 in respect of the

period from 1 st January, 2012 to 31 st December, 2012, the period

beginning 1 st January, 2013 or a subsequent period, shall be liable

to the imposition

(a) for an aircraft operator whose emissions for the first

calendar year of the period for which the plan relates

or for the first year of performing an activity covered

by these regulations during the period for which the

plan relates are less than ten thousand (10,000) tonnes

carbon dioxide equivalents, of an administrative fine

of one thousand euro (€1,000) and, or, fifty euro (€50)

for each day of non-compliance, from the date of a

notice given by the Authority to the operator;

(b) for an aircraft operator whose emissions for the first

calendar year of the period for which the plan relates

or for the first year of performing an activity covered

by these regulations during the period for which the

plan relates are equal to or greater than ten thousand

(10,000) tonnes carbon dioxide equivalents and equal

to or less than fifty thousand (50,000) tonnes carbon

dioxide equivalents, of an administrative fine of five

thousand euro (€5,000) and, or, one hundred euro

(€100) for each day of non-compliance, from the date

of a notice given by the Authority to the operator;

(c) for an aircraft operator whose emissions for the first

calendar year of the period for which the plan relates

or for the first year of performing an activity covered

by these regulations during the period for which the

plan relates are more than fifty thousand (50,000)

tonnes of carbon dioxide equivalents and equal to or

less than five hundred thousand (500,000) tonnes

carbon dioxide equivalents, of an administrative fine

of ten thousand euro (€10,000) and, or, three hundred

euro (€300) for each day of non-compliance, from the

date of a notice given by the Authority to the operator;

(d) for an aircraft operator whose emissions for the first

calendar year of the period for which the plan relates

or for the first year of performing an activity covered

by these regulations during the period for which the

plan relates are more than five hundred thousand

(500,000) tonnes of carbon dioxide equivalents, of an

administrative fine of fifty thousand euro (€50,000)

and, or, six hundred euro (€600) for each day of non-

compliance, from the date of a notice given by the

Authority to the operator.

(4) An aircraft operator who fails to monitor annual emissions

during a year in accordance with regulation 12 or fails to submit a

verified annual emissions report in respect of a year in accordance

with regulation 13 in respect of the period from 1 st January, 2012 to

31 st December, 2012, the period beginning 1 st January, 2013 or a

subsequent period, shall be liable to the imposition

(a) for an aircraft operator whose emissions for that year

are less than ten thousand (10,000) tonnes carbon

dioxide equivalents, of an administrative fine of one

thousand euro (€1,000) and, or, fifty euro (€50) for

each day of non-compliance, from the date of a notice

given by the Authority to the operator;

(b) for an aircraft operator whose emissions for that year

are equal to or greater than ten thousand (10,000)

tonnes carbon dioxide equivalents and equal to or less

than fifty thousand (50,000) tonnes carbon dioxide

equivalents, of an administrative fine of five thousand

euro (€5,000) and, or, one hundred euro (€100) for

each day of non-compliance, from the date of a notice

given by the Authority to the operator;

(c) for an aircraft operator whose emissions for that year

are more than fifty thousand (50,000) tonnes of carbon

dioxide equivalents and equal to or less than fifty

hundred thousand (500,000) tonnes carbon dioxide

equivalents, of an administrative fine of ten thousand

euro (€10,000) and, or, three hundred euro (€300) for

each day of non-compliance, from the date of a notice

given by the Authority to the operator;

(d) for an aircraft operator whose emissions for that year

are more than five hundred thousand (500,000) tonnes

of carbon dioxide equivalents, of an administrative

fine of fifty thousand euro (€50,000) and, or, six

hundred euro (€600) for each day of non-compliance,

from the date of a notice given by the Authority to the

operator.

(5) For the purposes of determining the administrative fine

under this regulation, where the emissions of the aircraft operator

are not known or are not reported or where the Authority is

satisfied that there is no reasonable possibility that a verified

quantity of emissions will be reported by the aircraft operator, the

Authority may itself determine the emissions from the activities

performed by the aircraft operator. The Authority shall use best

available data and ensure that a conservative estimate is made that

does not underestimate emissions. The aircraft operator shall be

liable to the imposition of an administrative fine equal to the

amounts established in sub-regulations (3) and (4) in respect of the

quantity of emissions estimated in terms of this sub-regulation.

(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.

(2) An aircraft operator may surrender Chapter II and Chapter

III allowances. Allowances issued by a competent authority of

another Member State shall be recognized by the Authority for the

purpose of meeting an aircraft operator’s obligations under sub-

regulation (1);

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.

(3) The national registry administrator shall cancel allowances

surrendered in accordance with sub-regulation (1).

(4) The national registry administrator shall cancel allowances

at any time at the request of an aircraft operator holding those

allowances.

(5) Surrender and cancellation of allowances shall be carried

out in accordance with the relevant decisions and regulations

adopted by the Commission pursuant to Directive 2003/87/EC.

(6) The Authority shall publish the name of any aircraft

operator who is in breach of the requirement to surrender sufficient

allowances under sub-regulation (1).

(7) Any aircraft operator who does not surrender sufficient

allowances by the 30 th April of each year as required by sub-

regulation (1) to cover its emissions during the preceding year shall

be liable to the imposition of an administrative fine of one hundred

euro (€100) for each tonne of carbon dioxide equivalent emitted,

for which the aircraft operator has not surrendered allowances.

From 1 st January 2013, where, for the year in respect of which an

aircraft operator does not surrender sufficient allowances to cover

emissions during that year in accordance with sub-regulation (1),

the annual average Harmonized European Index of Consumer

Prices published shows a percentage increase as compared to the

Harmonized European Index of Consumer Prices published for the

previous year, the administrative fine shall be increased by the

same percentage. The administrative fine as revised pursuant to this

sub-regulation shall apply to subsequent years unless further

increased in accordance with the Harmonized European Index of

Consumer Prices. For the purposes of this sub-regulation, each

allowance not surrendered by the aircraft operator for a tonne of

carbon dioxide equivalent emitted, shall be considered as a separate

contravention.

(8) The imposition of an administrative fine as prescribed in

sub-regulation (6) shall not release the aircraft operator from the

obligation to surrender an amount of allowances equal to those

excess emissions in respect of which the administrative fine is paid

when surrendering allowances in relation to the following calendar

year.

(9) Where an aircraft operator fails to surrender allowances in

accordance with sub-regulation (1), the national registry

administrator shall not allow the transfer of allowances or any other

accounting units out of the aircraft operator holding account of that

aircraft operator until the aircraft operator complies with the

requirement to surrender allowances

Provided that the national registry administrator shall not

prevent the surrender of allowances in accordance with sub-

regulation (1) or the cancellation of allowances in accordance with

sub-regulation (4), or the issuance of allowances in exchange for

CERs or ERUs in accordance with regulations 17 or 18.

(1) During the period from 1 st January, 2012 to 31 st

December, 2012 an aircraft operator may use CERs and ERUs up to

a quantity equivalent to 15% of the total emissions, in tonnes of

carbon dioxide equivalents, in respect of which allowances are

required to be surrendered pursuant to regulation 16.

(2) The use of CERs or ERUs by an aircraft operator pursuant

to sub-regulation (1) shall take place through the issue and

i m m e d i a t e s ur r e n de r o f o n e a l l ow a n c e b y t he A ut h o r i t y i n

exchange for one CER or ERU to be surrendered held by that

aircraft operator in the Union registry. CERs and ERUs used in

accordance with this regulation by an aircraft operator to meet

obligations under regulation 16 shall be subsequently cancelled.

(3) CERs and ERUs that are issued and may be used in

a c c o r d a n c e w i t h t he U N F C C C a n d t h e K y o t o P r o t oc o l an d

subsequent decisions adopted thereunder, may be used by an

aircraft operator in accordance with sub-regulation (1)

Provided that CERs and ERUs from land use, land use

change and forestry activities, and CERs and ERUs generated from

nuclear facilities, may not be so used.

(1) To the extent that the levels of CER and ERU use,

allowed to an aircraft operator for the period from 1 st January 2012

to 31 s t December 2012 have not been used up, or where an

entitlement to use credits is granted under sub-regulation (5), the

aircraft operator may request to be issued allowances to him valid

from 2013 onwards in exchange for CERs and ERUs issued in

respect of emission reductions up to 2012 from project types which

were eligible for use in the Union scheme during the period from

1 st January 2008 to 31 st December 2012. Until 31 st March 2015, the

Authority shall make such an exchange on request.

(2) To the extent that the levels of CER and ERU use, allowed

to an aircraft operator for the period 1 st January 2012 to 31 st

December 2012 have not been used up, or where an entitlement to

use credits is granted under sub-regulation (5), the aircraft operator

may exchange CERs and ERUs issued in respect of emission

reductions from 2013 onwards from project types that were

registered before 2013 and which were eligible for use in the Union

scheme during the period 1 st January 2008 to 31 st December 2012,

for allowances valid from 2013 onwards.

(3) To the extent that the levels of CER and ERU use, allowed

to an aircraft operator for the period 1 st January 2012 to 31 st

December 2012, have not been used up, or where an entitlement to

use credits is granted under sub-regulation (5), the aircraft operator

may exchange CERs issued in respect of emission reductions from

2013 onwards from project types started from 2013 onwards in

Least Developed Countries and which were eligible for use in the

Union scheme during the period from 1 st January 2008 to 31 st

December 2012, for allowances valid from 2013 onwards. This

sub-regulation shall apply until such countries have ratified a

relevant agreement with the Union or until 2020, whichever is the

earlier.

(4) To the extent that the levels of CER and ERU use, allowed

to an aircraft operator for the period 1 st January 2012 to 31 st

December 2012 have not been used up, or where an entitlement to

use credits is granted under sub-regulation (5), the aircraft operator

may use credits from projects or other emission reducing activities

in accordance with any agreements that may be concluded by the

Union with third countries, up to levels of use as specified in such

agreements, to comply with obligations under these regulations.

(5) For the period 1 st January 2013 to 31 st December 2020 an

aircraft operator shall be entitled to use an additional quantity of

CERs and ERUs up to an amount corresponding to a percentage of

its verified emissions during the period from 1 st January 2013 to

31 st December 2020, as may be established by the Commission

pursuant to Directive 2003/87/EC.

(6) For the purposes of this regulation, aircraft operators shall

not use CERs or ERUs for which restrictions on use apply in

accordance with relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/87/EC.

No CERs or ERUs shall be issued for reductions or

limitations of greenhouse gas emissions with respect to aviation

activities falling within the scope of these regulations.

(1) Where an aircraft operator fails to comply with the

requirements of these regulations and where enforcement measures

fail to ensure compliance, the Authority may, after consultation

with the regulatory authority responsible for aviation, ask the

Minister to request the Commission to decide on the imposition of

an operating ban on that aircraft operator. Such a request shall be

m a d e i n a c c o r d a n c e , w h e r e a p p l i c a b l e , w i t h d e c i s i o n s an d

regulations adopted by the Commission pursuant to Directive 2003/

87/EC.

(2) The Minister, before requesting the Commission to decide

on the imposition of an operating ban on an aircraft operator, shall

serve a notice to the aircraft operator which shall include

(a) evidence that the aircraft operator has not complied

with its obligations under these regulations and any

decisions and regulations adopted by the Commission

pursuant to Directive 2003/87/EC; and

(b) information on enforcement action which has been

taken in respect of the aircraft operator; and

(c) a draft of the request that the Minister intends to

submit to the European Commission under sub-

regulation (1).

The aircraft operator shall be given an opportunity to make

submissions to the Minister, within a period of time indicated in the

notice, which shall be of not more than twenty days, before the

Minister submits a request for an operating ban to the Commission.

(3) The request made by the Minister to the Commission

pursuant to sub-regulation (1) shall include

(a) evidence that the aircraft operator has not complied

with its obligations under these regulations and any

decisions and regulations adopted by the Commission

pursuant to Directive 2003/87/EC; and

(b) information on enforcement action which has been

taken in respect of the aircraft operator; and

(c) a justification for the imposition of an operating ban at

Union level; and

(d) a recommendation for the scope of the operating ban

and any conditions that should be applied.

(4) The Authority for Transport in Malta shall ensure that a

decision adopted by the Commission pursuant to Directive 2003/

87/EC to impose an operating ban on an aircraft operator is

enforced within the territory of Malta. The Minister responsible for

aviation shall inform the Commission of any measures taken to

enforce such a decision.

Decisions related to the allocation of allowances to aircraft

operators and reports of emissions submitted in accordance with

regulation 10 shall be made available to the public in accordance

with the Freedom of Access to Information on the Environment

Regulations

Provided that any access to personal data shall be made in

accordance with the Data Protection Act and that information

covered by professional secrecy may not be disclosed to any other

person or authority except by virtue of the applicable laws,

regulations, administrative provisions and, or, the provisions of the

Professional Secrecy Act

Provided also that, without prejudice to this regulation and

to the obligation which may be imposed on the Authority to

disclose any information, the Authority shall not disclose any

confidential information or any parts thereof or any other

information provided in connection with the report which should be

treated as commercially confidential

Provided further that any information which shall be treated

as commercially confidential shall be made known at all times to

the Authority.

The Authority may require that submissions of

applications, monitoring and reporting plans and reports under

these regulations are made in the form and manner and by means of

the medium as specified by it.

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.

The Administrative Review Tribunal shall have

jurisdiction to hear and determine appeals from decisions of the

Authority made under these regulations.

(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.

(2) For the purposes of regulations 12, 13, 14, 15, 16 and 17,

the verified emissions from flights other than those referred to in

sub-regulation (1) shall be considered to be the verified emissions

of the aircraft operator.

(3) By way of derogation from regulation 5 and sub-regulation

(1) of regulation 11, an aircraft operator benefitting from the

deroga tio ns provi ded for i n p ara graphs (a ) and ( b) of sub-

regulation (1), shall be issued a number of free allowances reduced

in proportion to the reduction of the surrender obligation provided

for in those paragraphs.

(4)

Deleted by Legal Notice 267 of 2019.

(5) By way of derogation from sub-regulation (1) of regulation

12, an aircraft operator shall not be required to submit a monitoring

plan in respect of flights which are subject to the derogations

provided for in paragraphs (a) and (b) of sub-regulation (1).

(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

Regulations 1(2), 3, 4(2), 4(6)(b), 5(1)(a),

5(3)(a), 6(1), 12(1), 12(9) and 16(1)

Categories of Activities to which these Regulations apply

Activities

Greenhouse gases

Aviation

Flights which depart from or arrive in an aerodrome situated in

the territory of a Member State

This activity shall not include

(a) flights performed exclusively for the transport, on

official mission, of a reigning Monarch and his

immediate family, Heads of State, Heads of

Government and Government Ministers, of a country

other than a Member State, where this is substantiated

by an appropriate status indicator in the flight plan;

(b) military flights performed by military aircraft and

customs and police flights;

(c) flights related to search and rescue, fire fighting

flights, humanitarian flights and emergency medical

service flights authorised by the appropriate authority;

(d) any flights performed exclusively under visual flight

rules as defined in Annex 2 to the Chicago

Convention;

(e) flights terminating at the aerodrome from which the

aircraft has taken off and during which no

intermediate landing has been made;

(f) training flights performed exclusively for the purpose

of obtaining a licence, or a rating in the case of

cockpit flight crew where this is substantiated by an

appropriate remark in the flight plan provided that the

flight does not serve for the transport of passengers

and/or cargo or for the positioning or ferrying of the

aircraft;

(g) flights performed exclusively for the purpose of

scientific research or for the purpose of checking,

testing or certifying aircraft or equipment whether

airborne or ground-based;

(h) flights performed by aircraft with a certified maximum

take-off mass of less than 5 700kg;

(i) flights performed in the framework of public service

obligations imposed in accordance with Regulation

(EEC) No 2408/92 on routes within the outermost

regions, as specified in Article 299(2) of the Treaty

establishing the European Community, or on routes

where the capacity offered does not exceed 30 000

seats per year;

EUROPEAN UNION GREENHOUSE GAS EMISSIONS

TRADING SYSTEM FOR AVIATION

(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.

(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.

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 paragraph.

Schedule 2

Regulation 2

Greenhouse gases

Carbon dioxide (CO 2 )

Methane (CH 4 )

Nitrous Oxide (N 2 O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulphur Hexafluoride (SF 6 )

Schedule 3

Regulations 6(2)(a), 12(3)(a), 13(1)(a) and 14(3)

Principles for Monitoring and Reporting of Emissions and Tonne-kilometre

Data from Aviation Activities

Monitoring of carbon dioxide emissions from aviation activities

Emissions shall be monitored by calculation. Emissions shall be calculated using

the formula

EUROPEAN UNION GREENHOUSE GAS EMISSIONS

TRADING SYSTEM FOR AVIATION

Fuel consumption × emission factor

Fuel consumption shall include fuel consumed by the auxiliary power unit. Actual

fuel consumption for each flight shall be used wherever possible and shall be

calculated using the formula

Amount of fuel contained in aircraft tanks once fuel uplift for the flight

is complete – amount of fuel contained in aircraft tanks once fuel uplift

for subsequent flight is complete together with fuel uplift for that

subsequent flight.

If actual fuel consumption data are not available, a standardised tiered method

shall be used to estimate fuel consumption data based on best available information.

Default IPCC emission factors, taken from the 2006 IPCC Inventory Guidelines or

subsequent updates of these Guidelines, shall be used unless activity-specific

emission factors identified by independent accredited laboratories using accepted

analytical methods are more accurate. The emission factor for biomass shall be zero.

A separate calculation shall be made for each flight and for each fuel.

Reporting of emissions

Each aircraft operator shall include the following information in its report in

regulation 13(2)

Data identifying the aircraft operator, including

(i) name of the aircraft operator,

(ii) its administering Member State,

(iii) its address, including postcode and country and, where different,

its contact address in the administering Member State,

(iv) the aircraft registration numbers and types of aircraft used in the

period covered by the report to perform the aviation activities

listed in Schedule 1,

(v) the number and issuing authority of the air operator certificate

and operating licence under which the aviation activities listed in

Schedule 1 were performed,

(vi) address, telephone, fax and e-mail details for a contact person,

and

(vii)

name of the aircraft owner.

For each type of fuel for which emissions are calculated

(i) fuel consumption,

(ii) emission factor,

(iii) total aggregated emissions from all flights performed during the

period covered by the report which fall within the aviation

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

operator in question is considered to be the aircraft operator,

(iv) aggregated emissions from

-

all flights performed during the period covered by the report

which fall within the aviation activities listed in Schedule 1,

for which the operator in question is considered to be the

aircraft operator and which departed from an aerodrome

situated in the territory of a Member State and arrived at an

aerodrome situated in the territory of the same Member State,

-

all other flights performed during the period covered by the

report which fall within the aviation activities listed in

Schedule 1, for which the operator in question is considered

to be the aircraft operator

(v)

aggregated emissions from all flights performed during the period

covered by the report which fall within the aviation activities

listed in Schedule 1, for which the operator in question is

considered to be the aircraft operator and which

-

departed from each Member State, and

-

arrived in each Member State from a third country,

(vi)

uncertainty.

Monitoring of tonne-kilometre data

For the purpose of applying for an allocation of allowances in accordance with

regulation 4 or regulation 5, the amount of aviation activity shall be calculated in

tonne-kilometres using the following formula

tonne-kilometres = distance × payload

‘distance’ means the great circle distance between the aerodrome of departure and

the aerodrome of arrival plus an additional fixed factor of 95 km; and

‘payload’ means the total mass of freight, mail and passengers carried.

For the purposes of calculating the payload

(a) the number of passengers shall be the number of persons on-board

excluding crew members;

(b) an aircraft operator may choose to apply either the actual or standard

mass for passengers and checked baggage contained in its mass and

balance documentation for the relevant flights or a default value of 100

kg for each passenger and his checked baggage.

Reporting of tonne-kilometre data

Each aircraft operator shall include the following information in its application

under regulation 4 or regulation 5

Data identifying the aircraft operator, including

(i) name of the aircraft operator;

(ii) its administering Member State;

(iii) its address, including postcode and country and, where different,

its contact address in the administering Member State;

(iv) the aircraft registration numbers and types of aircraft used during

the year covered by the application to perform the aviation

activities listed in Schedule 1;

(v) the number and issuing authority of the air operator certificate

and operating licence under which the aviation activities listed in

Schedule 1 were performed;

(vi) address, telephone, fax and e-mail details for a contact person,

and

(vii)

name of the aircraft owner.

Tonne-kilometre data

(i)

number of flights by aerodrome pair;

EUROPEAN UNION GREENHOUSE GAS EMISSIONS

TRADING SYSTEM FOR AVIATION

(ii) number of passenger-kilometres by aerodrome pair;

(iii) number of tonne-kilometres by aerodrome pair;

(iv) chosen method for calculation of mass for passengers and checked

baggage;

(v) total number of tonne-kilometres for all flights performed during

the year to which the report relates falling within the aviation

activities listed in Schedule 1.

Schedule 4

Regulations 7(1)(a), 13(3)(a) and 14(3)

Criteria for Verification

General Principles

1. Emissions from flights falling within aviation activities listed in Schedule 1

shall be subject to verification.

2. The verification process shall include consideration of the report pursuant to

regulation 13(2) and of monitoring during the preceding year. It shall address the

reliability, credibility and accuracy of monitoring systems and the reported data and

information relating to emissions, in particular

(a) the reported activity data and related measurements and calculations;

(b) the choice and the employment of emission factors;

(c) the calculations leading to the determination of the overall emissions;

and

(d) if measurement is used, the appropriateness of the choice and the

employment of measuring methods.

3. Reported emissions may only be validated if reliable and credible data and

information allow the emissions to be determined with a high degree of certainty. A

high degree of certainty requires the aircraft operator to show that

(a) the reported data is free of inconsistencies;

(b) the collection of the data has been carried out in accordance with the

applicable scientific standards; and

(c) the relevant records of the aircraft used to perform the aviation

activities covered by the report are complete and consistent.

4. The verifier shall be given access to all sites and information in relation to

the subject of the verification.

5. The verifier shall take into account whether the aircraft operator is

registered under the European Community eco-management and audit scheme

(EMAS).

Methodology

Strategic analysis

6. The verification shall be based on a strategic analysis of all the aviation

activities covered by the report carried out by the aircraft operator. This requires the

verifier to have an overview of all the activities and their significance for emissions.

EUROPEAN UNION GREENHOUSE GAS EMISSIONS

TRADING SYSTEM FOR AVIATION

Process analysis

7. The verification of the information submitted shall, where appropriate, be

carried out at the sites used by the aircraft operator to perform the aviation activities

covered by the report. The verifier shall use spot-checks to determine the reliability

of the reported data and information.

Risk analysis

8. The verifier shall submit all the aircraft for which the aircraft operator is

responsible to an evaluation with regard to the reliability of the data of each source

contributing to the overall emissions of the aircraft operator.

9. On the basis of this analysis the verifier shall explicitly identify those

sources with a high risk of error and other aspects of the monitoring and reporting

procedure which are likely to contribute to errors in the determination of the overall

emissions. This especially involves the choice of the emission factors and the

calculations necessary to determine the level of the emissions from individual

sources. Particular attention shall be given to those sources with a high risk of error

and the abovementioned aspects of the monitoring procedure.

10. The verifier shall take into consideration any effective risk control methods

applied by the aircraft operator with a view to minimising the degree of uncertainty.

Report

11. The verifier shall prepare a report on the validation process stating whether

the report pursuant to regulation 13(2) is satisfactory. This report shall specify all

issues relevant to the work carried out. A statement that the report pursuant to

regulation 13(2) is satisfactory may be made if, in the opinion of the verifier, the

total emissions are not materially misstated.

Minimum competency requirements for the verifier

12. The verifier shall be independent of the aircraft operator, carry out his

activities in a sound and objective professional manner, and understand

(a) the provisions of these regulations, as well as relevant standards and

guidance adopted by the Commission pursuant to Directive 2003/87/EC

and any requirements made by the Authority;

(b) the legislative, regulatory, and administrative requirements relevant to

the activities being verified; and

(c) the generation of all information related to each aircraft for which the

aircraft operator is responsible, in particular, relating to the collection,

measurement, calculation and reporting of data.

Additional provisions for the verification of aviation emission reports

13. The verifier shall in particular ascertain that

(a) all flights falling within an aviation activity listed in Schedule 1 to these

regulations have been taken into account. In this task the verifier shall

be assisted by timetable data and other data on the aircraft operator’s

traffic including data from Eurocontrol requested by that aircraft

operator;

(b) there is overall consistency between aggregated fuel consumption data

and data on fuel purchased or otherwise supplied to the aircraft

performing the aviation activity.

Additional provisions for the verification of tonne-kilometre data submitted

EUROPEAN UNION GREENHOUSE GAS EMISSIONS

TRADING SYSTEM FOR AVIATION

for the purposes of regulations 4 and 5

14. The general principles and methodology for verifying emissions reports as

set out in this Schedule shall, where applicable, also apply correspondingly to the

verification of aviation tonne-kilometre data submitted under regulations 4(2) and

5(2).

15. The verifier shall in particular ascertain that only flights actually performed

and falling within an aviation activity listed in Schedule 1 for which the aircraft

operator is responsible have been taken into account in that operator’s application

under regulations 4 and 5. In this task the verifier shall be assisted by data on the

aircraft operator’s traffic including data from Eurocontrol requested by that operator.

In addition, the verifier shall ascertain that the payload reported by the aircraft

operator corresponds to records on payloads kept by that operator for safety

purposes.