Mr. Noel Regan:

I will speak to the scope of the sectors and I think the Deputy also asked about the success of the ETS to date.

In terms of the scope of the sectors, its is buildings and road transport. That is an important delineation. It is road transport.

There are separate proposals in this package for both aviation and maritime transport. Aviation is already in the current emissions trading system for intra-EU flights and flights within the EU are in the ETS. However, there are considerable free allowances to the airline operators and a proposal now is to phase them out by 2027 so that, essentially, airlines would pay the full price of carbon from 2027. For international flights outside the EU, there is a new agreement being put in place, called Carbon Offsetting and Reduction Scheme for International Aviation, CORSIA. That is a worldwide system and that would be for flights outside the EU.

In terms of maritime transport, the Commission in its impact assessment has identified that, in the absence of an intervention in the maritime transport area, essentially emissions will not drop by 2050. This is largely an oil-based system. They have a new proposal to include maritime transport within the main ETS, but not in the buildings and road transport one. The existing ETS will be extended for aviation in terms of free allowances being reduced, maritime transport will go into the existing ETS, and the new ETS will cover road transport. Those are the three parts.