Since January 1st, 2025, aircraft operators under the purview of the EU ETS have the added obligation of monitoring and reporting their non-CO2 effects, including soot particles, water vapour, nitrous oxides (NOx) and oxidised sulphur species. The monitoring and reporting requirements of non-CO2 aviation effects are included in the Monitoring and Reporting Regulation (MRR) 2018/2066

It is important to note that, until at least 2028, there is no requirement to surrender EU ETS allowances for the reported non-CO2 effects. A thorough review will be conducted by the European Commission at that juncture to reassess the situation.

Aircraft operators are required to report the non-CO2 effects of their flights for the first time by March 31, 2026.

Scope

Only aircraft equipped with jet engines are subject to the monitoring, reporting, and verification (MRV) requirements for non-CO2 effects. Other types of aircraft are excluded from the non-CO2 MRV, even if they fall under the EU ETS for CO2 emissions. If an aircraft operator does not operate flights with a jet-engine aircraft, the non-CO₂ MRV obligation is not applicable to them.

As established in the ETS Directive, the monitoring and reporting of non-CO2 effects is mandatory for intra- and extra-European Economic Area (EEA) flights. However, to help facilitate the start of the monitoring and reporting on non-CO2 aviation effects, the European Commission has decided to implement a temporary derogation in the scope. For the initial two years (2025 and 2026) of the monitoring and reporting obligation, a reduced scope will apply. The scope is limited to include intra-EEA flights and flights from the EEA to Switzerland (CH) and the United Kingdom (UK). Voluntary reporting of flights outside the reduced scope is possible.

Monitoring methods and monitoring plan

The European Commission has developed two monitoring methods for the monitoring of non-CO2 aviation effects, Method C and Method D.

Under both Method C and D, aircraft operators may choose to use either primary or secondary data.

The monitoring of non-CO2 aviation effects is based on an approved monitoring plan. The section on non-CO2 effects monitoring is now included in the updated monitoring plan template (tab non-CO2 18-23)).

NEATS tool

For non-CO2 MRV, the MRR requires using an IT tool provided or approved by the European Commission (EC). The EC is launching a new IT tool called NEATS to automatise the monitoring and reporting process and the tool will be implemented, hosted and operated by EUROCONTROL.

However, NEATS was not available from January 1, 2025. According to Article 56b(6) MRR, in this situation aircraft operators must record flight information and aircraft properties per flight (defined in the MRR as the aircraft type, the engine(s) identifier(s) and the aircraft mass along the flight trajectory), and then enter the data into NEATS once the tool becomes operational. 

How will NEATS work?

NEATS aims to simplify the process for aircraft operators, requiring them only to upload basic aircraft properties (such as type, engine identifier, and mass) and fuel properties. In case where no data is provided, default values will be used, offering the possibility of a fully automatic monitoring, reporting and verification process. 

The collected data is then utilized in an emission module to initially compute emissions per flight. Subsequently, using open-source models, NEATS calculates the CO2 equivalent of these emissions for multiple time horizons (20, 50, and 100 years) based on the Global Warming Potential (GWP) metric. At the end of the reporting year NEATS will generate a report, which needs to be submitted to the competent authority.

NEATS provides the following key features:

  • Uploading of flight data by aircraft operator
  • Computation of non-CO2 aviation effects values
  • Generation of non-CO2 aviation effects annual report
  • Access for the accredited verifier specified by the aircraft operator and the relevant competent authority
  • Compliance with MRR reporting requirements and regulatory framework

NEATS is available here.

Milestones and compliance tasks