Emissions trading in aviation

The EU emissions trading system (EU ETS) applies to flights departing from and arriving at airports in the European Economic Area (EEA), unless they have been excluded from the scope of the EU ETS on specific grounds. In the period 2013–2023, however, the scope of the EU ETS is limited to flights within the EEA.

Emissions trading in aviation is based on tradeable emission allowances, in the same way as the emissions trading for stationary installations. Finland has implemented the emissions trading in aviation with the Act on Aviation Emissions Trading (34/2010).

The aviation emissions trading system is a semi-open system until 2020. This means that airlines can use the emission allowances of stationary installations to meet their obligations, but stationary installations are not allowed to use aviation emission allowances to meet their own obligations under emissions trading legislation. This restriction will be removed as of 2021.

The Ministry of Transport and Communications is responsible for aviation emissions trading in Finland. The competent authorities in Finland are the Finnish Transport Safety Agency (Trafi) and the Energy Authority. Trafi is responsible for the allocation, monitoring and reporting of emission allowances available for allocation. The Energy Authority is responsible for the recording and administration of emission allowances and for entering the auction proceeds as income for the government.

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