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UK CURRENT SURVEY AND LEGAL UPDATE – GREENWOOD, L’OKEN :: :: : (2008) 20 ELM 153
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New Integrated Pollution Prevention and New controls for aviation emissions – EU ETS
Control (IPPC) Directive
Civil aircraft emissions are set to come within the industrial
Europe is set to streamline and simplify its legislation on umbrella of the EU Emissions Trading Scheme – ‘cap’ and
pollution prevention, at the same time reinforcing controls ‘trade’ will be the watch words going forward
The European Commission published a new draft directive On 8 July 2008, the European Parliament endorsed the
on IPPC on 21 December 2007. If implemented it will inclusion of aviation within the scope of the EU Emissions
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simplify and consolidate the existing IPPC Directive and Trading Scheme (EU ETS). The European Commission’s
six associated Directives into a single Directive. The new proposals for a Directive to amend the EU ETS in respect
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legislation will require Member States to apply tighter and of civil aircraft emissions will see aviation emissions being
more consistent standards when determining the Best capped at 97 per cent of 2004–2006 levels in the first
Available Techniques (BAT) for those installations covered year, decreasing to 95 per cent in subsequent scheme
by the regime. In addition, stricter emission limits will be years. Airlines will be regulated by the EU country in which
applied to large combustion plants, the overall directive they run the majority of their flights, with breaches of
incorporating provisions of the Large Combustion Plants regulation leading to legal action. Consistent enforcement
Directive. The regime will also extend to additional throughout the EU will be paramount with operators, as a
installations and activities. last resort, being banned from operating within the EU. In
In terms of UK progress, the government published order to accommodate aviation, the current EU ETS will
four interrelated public consultations on the European require legislative amendments, the ‘mechanics’ of
Commission’s proposals to revise the IPPC Directive on 6 emissions trading being revised, albeit remaining
June 2008. The aim of these is to inform discussions and essentially the same for other participating sectors
debate on implementation, covering a number of issues, covered by the current EU ETS. Airlines will be able to
including but not limited to: substantive amendments, trade in allowances, selling surplus and buying additional
changes to the scope of the IPPC Directive, intensive allowances if emissions increase. Fifteen per cent of carbon
livestock production and large combustion plants (eg permits will be auctioned, with the remainder allocated
power stations, refineries). The draft proposals, generally freely. Permits would not be allocated according to
speaking, will not make any major changes to the existing National Allocation Plans, but rather in accordance with
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UK regulatory regime. There will, however, be a greater European based criteria and benchmarks in line with
certainty of regulation, although there will also be proposals to revise the current EU ETS.
additional administrative costs and burdens in applying The current European Emissions Trading Scheme
for and complying with permits for installations previously (Directive 2003/87/EC) established a scheme for
outside the scope of the IPPC regime. In terms of large greenhouse gas emissions allowance trading within the
combustion plants, the new draft IPPC Directive contains European Community and came into effect on 1 January
numerous technical amendments in respect of Emission 2005. Its aim is to reduce carbon dioxide emissions across
Limit Values (ELVs) in order to accommodate the Large Europe by introducing a ‘cap and trade’ scheme for all
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Combustion Plants Directive. The new draft provisions industries falling within its scope. Implemented in the UK
will apply to large combustion plants of 50mw or more. by the Greenhouse Gas Emissions Trading Scheme
In the meantime, a consolidated version of the IPPC Regulations 2005 (as amended), if an installation is
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Directive was published in the Official Journal at the end carrying out more than one activity as listed in Schedule
of last year. 14 1 to the ETS Regulations, then the activity in question
will be covered by the EU ETS. The EU ETS is divided into
Defra ‘Consultation on the European Commission’s Proposed three trading periods. The first (Phase 1) ran from 1
Directive on Industrial Emissions (Integrated Pollution January 2005 to 31 December 2007, Phase 2 began on
Prevention and Control) (Recast) – Various Changes to IPPC 1 January 2008 and is set to run until December 2012,
Scope’. coinciding with the first Kyoto commitment period
http://www.defra.gov.uk. (UNFCC Convention), which was approved on 16 March
2007. Finally, Phase 3 is to run from 2013 to 2017, with
possible further phases after this.

15 COM(2006)818. See also Pocklington, Leese ‘Certainties and
uncertainties – proposed modifications to the Emissions Trading
Directive’ pp 133–141.
16 National Allocation Plans set out final allocations of EU Allowance
12 COM(2006)543. Units for carbon dioxide for participating installations, identifying total
13 2001/80/EC. allowances for the Scheme year.
14 2008/1/EC. 17 The ETS Regulations SI 2005/925 (as amended).

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