Serbia’s New Aviation Regulations and CORSIA – A Strategic Alignment for Sustainable Aviation

Introduction

In an era marked by rapid climate change and escalating environmental challenges, the global aviation industry is increasingly under scrutiny for its significant carbon footprint. Responding to this, Serbia has taken a notable step by introducing progressive aviation regulations, positioning itself as a proactive participant in global environmental sustainability efforts. These regulations, detailed in the “Serbian Law on Climate Change”, reflect a commitment to aligning national policies with international standards, particularly with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), a pivotal initiative by the International Civil Aviation Organisation (ICAO). CORSIA, as outlined in “CORSIA”, represents a unified global effort to mitigate CO2 emissions from international aviation, setting a precedent as the first industry sector to agree on a global market-based measure in the climate change arena. Serbia’s alignment with CORSIA exemplifies a strategic approach to environmental stewardship, balancing national interests with global ecological imperatives, and underscores the importance of collaborative efforts in addressing the complex challenges of climate change. This paper aims to delve into the intricacies of Serbia’s new regulations, explore their synergy with CORSIA, and discuss the broader implications for sustainable aviation practices.

Overview of CORSIA

CORSIA, initiated by the International Civil Aviation Organisation (ICAO) in 2016, stands as a groundbreaking approach in the aviation sector’s fight against climate change. This scheme, unique for being the first industry-specific global market-based measure for addressing climate change, aims to stabilise CO2 emissions from international aviation, aligning with broader environmental objectives. CORSIA’s implementation occurs in three distinct phases: a pilot phase from 2021 to 2023, a first phase from 2024 to 2026, and a second, more inclusive phase from 2027 to 2035, involving all states with significant aviation activities based on 2018 revenue tonne kilometres (RTKs) data, excluding Least Developed Countries (LDCs), Small Island Developing States (SIDS), and Land Locked Developing Countries (LLDCs) unless they volunteer​​. The scheme applies to aeroplane operators emitting over 10,000 metric tonnes of CO2 annually and encompasses aircraft with a maximum take-off mass (MTOM) of over 5,700 kg, exempting operations like humanitarian, medical, and firefighting missions​​. CORSIA’s baseline was set at 85% of 2019 emissions from 2024 to 2035, a significant reduction target. While the ICAO, as part of the U.N., holds no legal enforcement authority, it relies on member states to incorporate CORSIA into their national aviation laws, as seen in models like the European Union’s Emissions Trading System (EU ETS)​​. CORSIA emphasises that offsetting is a complementary measure and should not replace ongoing efforts in technology and operations to reduce carbon emissions. It aims for the aviation sector to achieve net-zero emissions by 2050 through a combination of in-sector measures, including investment in new technologies and sustainable aviation fuels, and out-of-sector measures such as offsetting and carbon removals​​.

Serbia’s Aviation Regulations

Serbia’s new aviation regulations, as delineated in the “Serbian Law on Climate Change”, mark a significant step towards aligning the country’s aviation sector with global efforts to reduce greenhouse gas (GHG) emissions. The law is comprehensive, encompassing measures for limiting GHG emissions, adapting to climate change, developing low-carbon strategies, and improving existing programs for climate adaptation​​.

The law specifies its applicability to GHG emissions resulting from human activities and impacts on various sectors and systems due to climate change. It covers a range of GHGs, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and several others​​. The objective of the law is to establish a system to reduce GHG emissions effectively and economically, contributing to the mitigation of global climate change in accordance with major international agreements such as the UN FCCC, Kyoto Protocol, Doha Amendments, and the Paris Agreement​​.

Key aspects of the law include the development of strategies and action plans by the Ministry of Environment, focusing on reaching climate goals through defined methodologies and the establishment of a supervisory body​​. The government prescribes specific levels of GHG emissions for various sectors, including aviation, based on the strategies and action plans developed​​. Additionally, the law introduces flexibility instruments, allowing for the carryover of emissions under certain conditions, which provides a mechanism for managing emission levels effectively​​.

Monitoring, reporting, and verification of GHG emissions form a critical part of the regulatory framework. The Serbian law mandates aircraft operators with operational licenses to submit a GHG emissions monitoring plan to the Ministry, and the Directorate of Civil Aviation of Serbia plays a pivotal role in evaluating and approving these plans​​. The law stipulates detailed requirements for monitoring plans, including comprehensive data on GHG emission methodologies and written procedures for monitoring and reporting​​.

To ensure the continuous improvement and relevance of these monitoring plans, the law requires operators to regularly review and, if necessary, modify their monitoring plans. These amendments must be notified to and approved by the Ministry​​. For production plants with low GHG emissions, the law allows for a simplified monitoring plan, subject to specific conditions set by the Minister​​.

The law obliges operators to submit verified reports on GHG emissions by March 31 of each year, detailing emissions for the previous calendar year. These reports must be verified by accredited verifiers​​. In cases where operators fail to submit verified reports, or if reports are not prepared according to the law’s provisions, the Agency or the Directorate performs a conservative assessment of GHG emissions​​.

Improvements in monitoring methodology are also a key focus. Operators are required to submit reports on any improvements to their monitoring methodologies for approval by the Ministry, ensuring continuous enhancement of emission monitoring practices​​.

The law also outlines the processes for accreditation of verifiers, including the evaluation of their competence and adherence to verification standards. The Accreditation Body of Serbia (ATS) plays a critical role in accrediting legal entities as verifiers and monitoring their performance​​.

Enforcement and compliance are addressed through provisions for inspection supervision, which is carried out by various ministries and their respective inspectors. These inspectors are empowered to ensure compliance with the law’s requirements, including the submission of monitoring plans, emission reports, and adherence to prescribed methodologies​​.

The law further emphasises the importance of timely and proper communication to the Serbian public, establishing a national GHG registry, and projecting climate change impacts​​. It sets clear timelines for the implementation of its provisions, including specific deadlines for the adoption of regulations and strategies for low-carbon development and climate adaptation​​.

Finally, the law specifies the commencement of its application to airway operators from January 1, 2023, marking a new era in Serbia’s approach to managing aviation emissions in line with global sustainability goals​​.

Comparison and Analysis

The comparison between Serbia’s new aviation regulations and the CORSIA framework reveals a strategic and nuanced alignment, demonstrating Serbia’s commitment to global environmental standards in aviation.

Alignment with CORSIA Objectives

Serbia’s regulations, as laid out in the “Serbian Law on Climate Change”, echo many of CORSIA’s key objectives, particularly in terms of GHG emissions monitoring, reporting, and verification. CORSIA requires operators to monitor and report their emissions annually, using specific fuel use monitoring methods​​. Similarly, Serbia’s law mandates that aircraft operators submit a GHG emissions monitoring plan and provides detailed guidelines for monitoring, reporting, and verification processes, aligning closely with CORSIA’s requirements​​.

Flexibility Mechanisms

Serbia’s law introduces flexibility mechanisms, allowing for the carryover of up to 5% of the annual emissions amount to the following year if emissions exceed prescribed levels. This provision mirrors the market-based measures of CORSIA, offering a pragmatic approach to managing emission levels​​.

Verification and Accreditation

Both CORSIA and Serbia’s laws emphasise the importance of independent verification. CORSIA stipulates that emissions reports need to be verified by an independent third-party verification body accredited under ISO 14065 and specific CORSIA requirements such as the need for verifiers to demonstrate competence in GHG emissions reporting, an understanding of aviation fuel use and its environmental impact, and the ability to assess the accuracy and completeness of emissions reports. Serbian law, in turn, details the accreditation process for verifiers and the verification of GHG emissions reports, ensuring compliance and integrity in emissions reporting​​.

Simplified Monitoring for Low Emission Operators

CORSIA exempts operators with emissions below 10,000 metric tonnes of CO2 per year. Similarly, Serbia’s law provides provisions for a simplified monitoring plan for plant operators with low GHG emissions, reflecting a similar understanding of the disproportionate burden on smaller operators​​.

Administrative and Legal Framework

One critical difference lies in the administrative and legal frameworks. CORSIA, being a global scheme, relies on member states to adopt its rules into their national laws​​. Serbia’s regulations, as a national law, are directly enforceable within its jurisdiction, providing a structured approach to implementation and compliance, including detailed provisions for inspection and enforcement​​.

Commitment to Environmental Goals

Both CORSIA and Serbia’s regulations share a commitment to reducing aviation’s environmental impact. CORSIA’s goal of stabilising CO2 emissions at 2020 levels by purchasing emission reduction credits aligns with Serbia’s broader objectives to reduce GHG emissions in a cost-effective and economically efficient manner, contributing to global efforts against climate change​​​​.

Challenges and Opportunities for the Aviation Industry

Challenges

  1. Technological and Financial Barriers:
    • Adoption of New Technologies: The introduction of new aviation technologies for emissions reduction, as envisioned by CORSIA and Serbia’s new regulations, often involves substantial investment. The cost of transitioning to more efficient aircraft and integrating sustainable aviation fuels can be prohibitive, especially for smaller operators.
    • Monitoring and Reporting Systems: Implementing robust monitoring and reporting systems for GHG emissions, as mandated by Serbia’s law​​, requires significant technological expertise and financial resources. This could be challenging for operators with limited technical capabilities or financial constraints.
  2. Regulatory Compliance:
    • Adherence to Stringent Regulations: Ensuring compliance with the detailed monitoring, reporting, and verification requirements set out in the Serbian law​​ and CORSIA​​ may be challenging for some operators, especially those unfamiliar with such rigorous regulatory frameworks.
    • Enforcement Variability: As CORSIA relies on member states to enforce its rules​​, there could be variability in enforcement and compliance standards across different jurisdictions, potentially leading to an uneven playing field.
  3. Market-Based Measures Adaptation:
    • Emissions Trading and Offsetting: The concept of emissions trading and offsetting, central to CORSIA​​, is relatively new in the aviation sector. Integrating these market-based measures into Serbia’s regulatory framework might require a paradigm shift for operators and regulators alike.

Opportunities for the Aviation Industry

  1. Leadership in Sustainable Aviation:
    • Pioneering Green Technologies: By embracing CORSIA’s objectives and implementing its own robust regulations, Serbia has the opportunity to become a regional leader in sustainable aviation practices, setting an example for neighbouring countries.
    • Innovation and Development: The push towards sustainability can stimulate innovation, leading to the development of new, more efficient aviation technologies and sustainable fuels.
  2. Economic Benefits:
    • New Market Opportunities: The shift towards greener technologies and sustainable practices could open up new markets for eco-friendly aviation services and products.
    • Job Creation: Implementing new technologies and sustainable practices in the aviation sector could create jobs in emerging green industries.
  3. Enhancing Global Environmental Goals:
    • Contribution to Climate Change Mitigation: By aligning with CORSIA and implementing stringent aviation regulations, Serbia contributes significantly to global efforts in reducing aviation emissions, thus helping mitigate climate change.
    • Promoting International Collaboration: Serbia’s efforts can encourage international collaboration, leading to more unified and effective global approaches to tackling aviation emissions.

Conclusion

Serbia’s alignment with CORSIA sets an important precedent for international collaboration in addressing aviation emissions. By demonstrating a commitment to both national and global environmental goals, Serbia encourages other countries to follow suit, promoting a more unified and effective approach to sustainable aviation practices worldwide.

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Kiril Petrovski
Kiril Petrovski, is a lawyer and a sustainability consultant at ESG PRO. He obtained his master’s degree in corporate law, which he passed with distinctions and is currently in the final stages of acquiring a PhD in the field of Public Health. He has accumulated experience in the field of administrative management through work in several public bodies. His specialty is on social matters and corporate governance. Kiril believes that every challenge must be approached from every direction with the aim to create long lasting, all-encompassing and practical systematic solutions.

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