Market Based Measures (EU-ETS)

There are several regulatory market-based measures, such as the European Union Emissions Trading Scheme (EU-ETS).


The European Union Emissions Trading System (EU-ETS) was originally introduced in 2005 to drive emissions reduction improvements in the energy and industrial sectors. From 2012, aviation will be included in the EU-ETS, meaning all aircraft operators operating in the EU will be subject to the scheme.                       Added: The new set of guidance will be integrated into existing IS-BAO and IS-BAH programmes – and will as well be provided standalone for organisations that do not operate aircraft, manage FBOs or provide ground-handling services as part of their activities.

The EU-ETS is what’s known as a “cap and trade” system, where operators have to purchase allowances to cover their emissions outputs.

The scheme has become the cornerstone of the EU’s policy to combat climate change – which now falls under the EU’s Green Deal policy framework – and covers approximately 45% of all Greenhouse Gas Emissions across the EU.

EBAA stands for an alignment between the EU-ETS and CORSIA, to ensure the European Business aviation sector is not forced to participate in both schemes simultaneously.

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