Since 2012 all flights operating within the EU member states are under the scope of the Aviation Emission Trading Scheme. Operators must surrender one allowance per ton of CO2 emitted on a flight to and from (and within) the EU. This covers passenger, cargo and non-commercial flights and applies no matter where an operator is based, non-EU carriers will also need to comply with the scheme.
Airlines are subject to different rules than industrial installations and are in a more volatile environment in respect to the regulation. Virtuse can manage your exposure in the EU ETS, and help you to understand and prepare for the future implications of Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Clients are required to purchase EUAAs (European Union Aviation Allowances) every year to comply. Aviation sector may use both EUAs and EUAAs for compliance, but due the fact that EUAAs sell at a discount to EUAs, majority of airlines prefer to use the EUAAs. Just like EUAs, EUAAs can be purchased through auctions, at the exchanges, or at the OTC markets.