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credits onto their balance sheets as both a
liability and an asset.
Those that exceed their allotted quota
of credits will have to buy them in, while
those who have credits to spare can sell
them. Despite the somewhat reduced price
of carbon at the moment, carbon trading
is set to dominate financial markets in the
coming years.
EU ETS and aviation
It is a common misconception that the introduction
of aviation into the scheme will lead
to fewer flights and, therefore, a reduction in
fuel burn. Nothing could be further from the
truth. Despite the current downturn, aviation
is set to return to growth and within a few
years may well be back to the strong trends
of the previous decade.
What will be different, however, is that
aviation will be buying some of its ‘rights
to flights’ in the form of carbon vouchers
from the same marketplace as all the other
industry sectors in the scheme – powergeneration,
paper-mills, car makers and even
aircraft manufacturers.
The theory follows that the credits are
traded in multi-year periods, and as each
one ends, a new one starts with fewer
carbon credits on offer. Therefore, everyone
who wants to stay in business will have
to gradually, but relentlessly, reduce the
amount of carbon they need to undertake
their activities as, bit by bit, the pool of
Despite the
somewhat
reduced price
of carbon at the
moment, carbon
trading is set to
dominate financial
markets in the
coming years
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THE MAIN PURPOSE of the fi rst Single
European Sky legislative draft, known as
‘SES I’, and introduced back in 2004, was to
tackle the issues of safety and congestion in
the air and the consequent delays. But while
safety and capacity are still major issues, the
picture today is more varied, with a greater
emphasis on performance, cost-effi ciency
and the environment. Member States and
stakeholders have also asked for better regulation
and so the second set of legislation,
SES II, addresses all of these challenges.
One of the lessons learned from SES I is
that the overall regulatory process between
the European Commission and EUROCONTROL
takes a lot of time. According to Jean-
Luc Garnier, deputy director Single European
Sky Implementation at EUROCONTROL: “So
far, the fastest we’ve managed for a new
regulation is a bit more than two years. It can
take up to three and a half years. EUROCONTROL
itself needs between one and two
years to prepare a draft regulation. Then
the Commission has its internal process. For
example, a report we gave them in October
2007 was approved in September 2008 and
only published in January 2009. However, for
SES II we’ll try to speed up the process.”
To face the new challenges of the recently
published SES II package, EUROCONTROL
plans to reorganise into three major divisions:
SES, SES ATM Research (SESAR) and
Network Manager. This reform was supported
by the EUROCONTROL governing bodies
“and should lead to a closer relationship with
the Commission and thus to a faster fl ow of
information between us,” Garnier explains.
Garnier outlines what happens when the
Commission mandates EUROCONTROL to
develop rules for the SES. He says: “We make
International air transportation takes place within
a political arena, requiring laws and regulations to
ensure cohesion. Christina Mackenzie reviews the
second Single European Sky legislative package
Legislating for
growth
three proposals, pointing out the advantages
and disadvantages of each and saying which
of the three we prefer. We then prepare the
text of the regulation and send it for a formal
consultation to our partners (the states, the
airspace users, the providers of air traffi
c management [ATM] services, industry,
airports, standardisation organisations, ICAO
[International Civil Aviation Organization]
　
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