In a decisive move towards enhancing climate action, the EU Member States, represented in the Climate Change Committee, have approved amendments to the Monitoring and Reporting Regulation under the EU Emissions Trading System (EU ETS). This significant update, proposed by the European Commission, introduces new rules that account for non-CO₂ emissions from the aviation sector, marking a crucial step in the EU’s ongoing efforts to tackle the full climate impact of air travel.
Key Amendments and Their Implications
The newly endorsed revisions incorporate the zero-rating of emissions from the combustion of renewable fuels of non-biological origin (RFNBOs), recycled carbon fuels (RCFs), and synthetic low carbon fuels (SLCFs). This zero-rating is contingent on compliance with stringent criteria outlined in the Renewable Energy Directive (RED II). Specifically, these fuels must meet the ‘additionality’ rules, which require that the electricity used for RFNBO production is both renewable and additional, and they must achieve at least 70% greenhouse gas (GHG) emissions savings compared to fossil fuels on a life-cycle basis. These measures ensure that such emissions are accurately accounted for while avoiding double counting.
Additionally, the new rules introduce refinements to existing monitoring and reporting practices. For example, there are updates related to the transfer of CO₂ by means other than pipelines and the accounting of CO₂ emissions that are permanently chemically bound within a product.
Another crucial change is the integration of a recently established EU-wide database for biomass fuels. This database will play a pivotal role in demonstrating compliance with RED II’s sustainability and GHG savings criteria, ensuring that biomass fuels used within the EU ETS are sustainable and contribute to genuine emissions reductions.
Non-CO₂ Aviation Emissions: A New Frontier in Climate Action
One of the most groundbreaking aspects of these amendments is the introduction of detailed monitoring, reporting, and verification (MRV) requirements for non-CO₂ emissions from aviation. The Intergovernmental Panel on Climate Change (IPCC) has long highlighted that non-CO₂ effects, such as persistent contrails, nitrogen oxides (NOx), and soot particles, significantly contribute to global warming. These effects, which account for two-thirds of aviation’s total climate impact, have been recognized in EU law since 2008.
In light of this, the 2023 revision of the EU ETS Directive underscored the importance of addressing non-CO₂ emissions. The newly adopted MRV system, set to be operational from 1 January 2025, reflects this commitment by establishing a robust framework for monitoring these emissions. This initiative is not only a testament to the EU’s leadership in climate action but also a critical step towards achieving climate neutrality.
Supporting Innovation and Scientific Understanding
The introduction of these new rules is supported by financial investments from the EU ETS Innovation Fund, aimed at mitigating non-CO₂ impacts, alongside research efforts under the Horizon Europe programme. These combined efforts will enhance the scientific understanding of non-CO₂ aviation effects and foster innovative solutions to address them.
Next Steps
Following the approval by Member States, the revised MRV rules will now be formally adopted by the European Commission and published in the Official Journal of the European Union, bringing these vital changes into force.
Background
This development is part of a broader revision of the EU ETS Monitoring and Reporting Regulation, initially amended in 2023 to align with updates to the ETS Directive. This first batch of revisions established new monitoring and reporting rules for the extended EU ETS, including the inclusion of municipal waste incineration emissions from 2024. The second batch of amendments, completed with today’s approval, represents a comprehensive update to further align the EU ETS with the EU’s ambitious climate goals.
Conclusion
The EU’s latest revisions to the Monitoring and Reporting Regulation mark a significant milestone in the fight against climate change, particularly in addressing the complex impacts of aviation. By setting new standards for non-CO₂ emissions monitoring and reporting, the EU is reinforcing its commitment to a comprehensive approach to climate neutrality. As these rules come into effect, they will play a crucial role in ensuring that the aviation sector contributes its fair share to global emissions reductions, paving the way for a more sustainable future.