According to art. 19 of Act no. 70/2012 on climate change, emission allowances free of charge will be allocated to aircraft operators from the Special Reserve for new entrants and fast growing airlines. For phase 3 the allocation is from 1. January 2017 – 31. December 2020.

According to Act no. 70/2012 on climate change, the Environment Agency of Iceland allocates emission allowances free of charge to operators covered by the ETS and under the supervision of the Icelandic government, based on benchmarks set out in regulation no. 100/2016 on the allocation of allowances free of charge to aircraft operators. . The regulation is in accordance with the decision of the EEA Joint Committee on benchmarks for aviation activities in the European Economic Area. According to Regulation no. 100/2016, 0.6422 allowances is allocated for every 1,000 ton–kilometers each year.

Two aircraft operators applied for allocation from the Special Reserve and submitted Monitoring Plan for Tonne-kilometres in August 2013 and verified Tonne-kilometre report in June 2015. The allocation was calculated from tonne-kilometres in 2014.

The following aircraft operators will be allocated emissions free of charge from the Special Reserve:

Allocations are in tons of CO₂

The first allocation will take place before 28. February 2017 and then annually until the year 2020.