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Application and allocation of free allowances
Directive 2003/87/EC stipulates that in the first trading period (from 1 January 2012 up to and including 31 December 2012), the total quantity of emission allowances to be allocated shall be equivalent to 97% of historical aviation emissions. For the second period that starts on 1 January 2013 ( and ends at 31 December 2020), this quantity will be equal to 95% of historical aviation emissions. Of this total quantity of emission allowances, in both trading periods, 85% will be allocated free of charge, and 15% will be auctioned. On 7 March 2011, the European Commission adopted Decision 2011/149/EU whereby the historical aviation emissions were set at 219.476.343 tonnes CO2.
How to apply for free emission allowances?
Applying for free emission allowances came down to submitting no later than 31 March 2011 a verified report on tonne-kilometer data to the Competent Authority. This was only possible if the tonne-kilometre data of 2010 had been monitored by an approved monitoring methodology. More info on timing, legislation, procedures, etc. on monitoring and reporting tonne-kilometer data can be consulted on http://www.lne.be/en/ets-aviation/MRV
Procedure for the allocation of free allowances
The emission allowances that will be allocated for free will be divided over participating operators based on their tonne-kilometres in 2010. A tonne-kilometre is a uniform measure for transportation performance and corresponds with the transport of one tonne of goods or passengers over a distance of one kilometre.
Pursuant to article 3e of Directive 2003/87/EC, the Competent Authority has submitted the applications to the European Commission before 30 June 2011. On the basis of all submitted applications, the European Commission has calculated the benchmark that Competent Authorities have to use to determine the allocation of free allowances. This benchmark was adopted by Decision 2011/638/EU of 26 September 2011 and amounts to 0,000679695907431681 allowances per tonne-kilometre for the period from 1 January 2012 until 31 December 2012. For the period that starts on 1 January 2013 and ends at 31 December 2020, the benchmark amounts to 0,000642186914222035 allowances per tonne-kilometre.
Based upon the verified tonne-kilometre data and the applicable benchmark, the Competent Authority has calculated the allocation of free allowances for each aircraft operator. Calculations related to the number of allowances had to be rounded down to the nearest allowance pursuant to Decision 2011/638/EU. The allocation of free allowances for each aircraft operator can be consulted in this overview table. The allocation of free allowances has been adopted in several Ministerial Decisions which were published in the Official Belgian Journal (Belgisch Staatsblad – Moniteur Belge).
Special reserve for certain aircraft operators
A special reserve of allowances will be set up for new aircraft operators or for aircraft operators who experience a growth in tonne-kilometre activity in excess of 18% on average annually between 2010 and 2014. Aircraft operators willing to apply for this special reserve will have to monitor their tonne-kilometre data in 2014. In 2015, they will have to submit an application for an allocation of free allowances from the special reserve on the basis of a verified tonne-kilometre report.