Corrigendum to 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 Community, in view of the implementation by 2020 of an international agreement applying a single global market-based measure to international aviation emissions for: ‘Article 1 Directive 2003/87/EC is hereby amended as follows: (1) The following Article is inserted: "Article 28a Derogations applicable in advance of the implementation by 2020 of an international agreement applying a single global market-based measure 1. (...) 2. (...) As regards activity in the period from 1 January 2013 to 31 December 2016, Member States shall publish the number of free aviation allowances allocated to each aircraft operator by 1 August 2014."', read: ‘Article 1 Directive 2003/87/EC is hereby amended as follows: (1) The following Article is inserted: "Article 28a Derogations applicable in advance of the implementation by 2020 of an international agreement applying a single global market-based measure 1. (...) 2. (...) As regards activity in the period from 1 January 2013 to 31 December 2016, Member States shall publish the number of free aviation allowances allocated to each aircraft operator by 1 September 2014 ."'.

The European Parliament adopted by 458 votes to 120, with 24 abstentions, a legislative resolution on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in view of the implementation by 2020 of an international agreement applying a single global market-based measure to international aviation emissions.

Parliament adopted its position at first reading following the ordinary legislative procedure. The amendments adopted in plenary are the result of an agreement negotiated between the European Parliament and the Council. They amend the proposal as follows:

Current derogations applicable only until 31 December 2016: in order to sustain the momentum reached at the 38th Session of the ICAO Assembly in 2013 and facilitate progress at the upcoming 39th Session in 2016, it is desirable to temporarily consider the requirements set out in Directive 2003/87/EC of the European Parliament and of the Council to be satisfied for the period until 31 December 2016 in respect of flights to and from aerodromes in countries outside the European Economic Area (EEA).

According to the amended text, Member States would therefore take no action against aircraft operators in respect of:

· all emissions from flights to and from aerodromes located in countries outside the European Economic Area (EEA) in each calendar year from 1 January 2013 to 31 December 2016;

· 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 (TFEU) and an aerodrome located in another region of the EEA in each calendar year from 1 January 2013 to 31 December 2016.

The Commission should regularly inform the European Parliament and the Council of the progress of the International Civil Aviation Organization (ICAO) negotiations as well as of its efforts to promote the international acceptance of market-based mechanisms among third countries. Following the 2016 ICAO Assembly, the Commission should report to the European Parliament and to the Council on actions to implement an international agreement on a global market-based measure from 2020, that will reduce greenhouse gas emissions from aviation.

In its report, the Commission should consider, and, if appropriate, include proposals in reaction to, those developments on the appropriate scope for coverage of emissions from activity to and from aerodromes located in countries outside the EEA from 1 January 2017 onwards .

Use to be made of revenues generated from the auctioning of allowances: those revenues, or their equivalent in financial value, should be used to tackle climate change in the Union and third countries , among other things, to :

· reduce greenhouse gas emissions,

· adapt to the impacts of climate change in the Union and third countries, especially developing countries,

· fund research and development for mitigation and adaptation, including in particular in the fields of aeronautics and air transport,

· reduce emissions through low-emissions transport and cover the costs of administering the Union scheme,

· fund contributions to the Global Energy Efficiency and Renewable Energy Fund, and measures to avoid deforestation.

Member States would be obliged to submit to the Commission a report on the use of revenues from the auctioning of such allowances.

The Committee on the Environment, Public Health and Food Safety adopted the report by Peter LIESE (EPP, DE) on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in view of the implementation by 2020 of an international agreement applying a single global market-based measure to international aviation emissions.

The committee recommended that the position of the European Parliament adopted in first reading following the ordinary legislative procedure should amend the Commission proposal as follows:

International approach : the report stressed that climate protection initiatives should be taken quickly as global problems of the kind posed by aviation emissions could be most effectively addressed by means of an international approach that included an obligation to comply with the same measures or to achieve the same objectives using different measures.

Members felt that a global agreement at the ICAO offers the best prospects of ensuring sustainability in the long term.

Legal position after 2016 : Members recalled that the Commission proposed to amend the Emissions Trading System so that emissions from aviation would be covered for the part of the flight which took place in European airspace. The amendment would apply from 1 January 2014 until global market-based measure (MBM) became applicable to international aviation emissions from now to 2020.

Members recommend temporarily considering the requirements set out in Directive 2003/87/EC as satisfied for the period until 2016, when obligations are met in respect of a certain percentage of the emissions from flights to and from aerodromes in third countries.

They stated that the current derogations would only apply until 2016 , and the next ICAO Assembly. Following the ICAO conclusions in 2016 and results achieved, the Union could consider what further steps needed to be made to reflect the outcome of the international negotiations.

Accordingly, the Commission should report annually to the European Parliament and the Council on the progress of the negotiations and preparations leading up to the 2016 ICAO Assembly as well as on the Commission's efforts to promote the international acceptance of the airspace approach among third countries.

Revenues generated from the auctioning of allowances : Member States shall use revenues generated from the auctioning of allowances for efforts to tackle climate change , in particular at international level, to reduce greenhouse gas emissions and to adapt to the impact of climate change in developing countries as well as to fund research and development for mitigation and adaptation including, in particular, in the field of aeronautics and air transport.

Revenues generated from auctioning should also be used on low-emission transport. The proceeds of auctioning should also be used to fund contributions to the Global Energy Efficiency and Renewable Energy Fund and the Green Climate Fund under UNFCCC as well as measures to avoid deforestation.

Flights between the outermost regions and the EEA mainland: the report stated that these flights should also follow the regional market based approach. The percentages should be calculated by Eurocontrol on the basis of the proportion of the Great Circle Distance between the main airports in the EEA mainland and in the outermost region that is not more than 12 miles beyond the furthest point of EEA mainland until a global market-based measure enters into force.

PURPOSE: to amend Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in view of the implementation by 2020 of an international agreement applying a single global market-based measure to international aviation emissions.

PROPOSED ACT: Directive of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: the 2001 International Civil Aviation Organisation (ICAO) Assembly endorsed the application of open emissions trading systems to international aviation. The Union is endeavouring to secure a future international agreement to control greenhouse gas impacts from aviation and, in the meantime, is limiting climate change impacts from aviation activities to and from aerodromes in the Union by autonomous action. In line with the outcome of the 38th ICAO Assembly held in September 2013, there should be a single global market-based measure (MBM) applying to international aviation emissions from 2020 onwards . In response to this progress and to promote further momentum towards the successful establishment of a global MBM, the Commission proposes to make amendments to the aviation activities covered by the EU ETS.

IMPACT ASSESSMENT: the Impact Assessment has shown that adapting the EU ETS to accord with what was expected to be ICAO's MBM Resolution for the period up to 2020 is feasible at low administrative costs.

The environmental benefit of this proposal comes from two key elements:

it gives impetus to the global MBM that will cover the total emissions from international aviation from 2020 onwards. Depending on the ambition level agreed for the global MBM, total international aviation emissions will be capped at their 2020 level and even be halved by 2050 below 2005 levels; the EU ETS will continue to achieve substantial emission reductions that are expected to be up to 250 million tons CO2 in the period from 2013 to 2020.

LEGAL BASIS: Article 192(1) of the Treaty on the Functioning of the European Union.

CONTENT: the Commission proposed amending the EU emissions trading system (EU ETS) so that aviation emissions would be covered for the part of flights that takes place in European regional airspace. The adjustment in the legislation would apply from 1 January 2014 and until a planned global market-based mechanism (MBM) becomes applicable to international aviation emissions by 2020.

The key features of the revised ETS system resulting from this proposal would be as follows:

flights between aerodromes in the EEA remain fully covered, as under the original Directive and Decision No. 377/2013/EU; flights to and from third countries which are not developed countries and which emit less than 1% of global aviation emissions would be exempted; fights to and from third countries are responsible for emissions taking place not beyond EEA countries, as from 2014. A simplified procedure is proposed to determine the relevant proportion of emissions of a given flight which is covered by the ETS; overflights of EEA countries are exempt, as are emissions from flights between airports in third countries and EEA airports as regards European dependencies and territories, and flights to and from EEA airports and those territories.

As a simplification and to in order to lighten administrative tasks for the smallest aircraft operators , the proposal provides that action should not be taken against non-commercial aircraft operators in respect of emissions from small aircraft operators emitting less than 1000 tonnes CO2 per annum. This is expected to reduce the number of aircraft operators regulated by Member States by around 2200 representing 0.2% of emissions.

All other obligations in respect of flights remain unaffected.

The Commission calls for this proposal to be adopted rapidly by the European Parliament and Council, so as to provide clarity for aircraft operators, who would otherwise have to surrender allowances.

BUDGETARY IMPLICATION: the proposal has no budgetary implications for the EU budget.