By Framework Decision 2005/214/JHA, the Council established a framework for the mutual recognition of financial penalties. This means that fines for infringements resulting from infringements of instruments adopted to comply with Community law and committed in one Member State (the issuing State) can be recognised and enforced in another Member State (the executing State). In each Member State, the system shall be managed by a central authority. Funds received from enforcement shall be paid to the executing Member State, unless otherwise agreed between the two Member States concerned. If the first administrative Member State agrees to continue the management of the aircraft operator concerned, it should inform the Commission of that agreement and indicate the date from which the aircraft operator is managed by the new Member State of administration. A regular review of the scheme is necessary in accordance with the terms of the Agreement. This should allow for continuous improvement, including in how the system contributes to the objectives of the Paris Agreement. The Agreement on the European Economic Area (EEA), which entered into force in 1994, is an agreement between the 27 EU Member States and three Member States of the European Free Trade Association (EFTA). The latter countries, namely Iceland, Liechtenstein and Norway, are collectively referred to as the EEA-EFTA countries.

The EEA Agreement provides for the extension of certain EU legislation to the EEA-EFTA countries. Under a `leasing contract`, an aircraft is operated by the lessee under the lessee`s AOC and control of the aircraft is effectively transferred to the lessee. It is therefore presumed that the lessee is the operator and that the ICAO designation of the licensee should be included in the flight plan. Operators updating their monitoring plans should immediately inform their competent authority of any changes made. In the event of a substantial change in the monitoring methodology, operators shall submit their updated plans for a new authorisation. The main changes are described in the EU ETS Monitoring and Reporting Directives and include: some aircraft operators use the services of management companies to submit flight plans and pay en route charges on their behalf. The Climate Action Network calls for shipping (IMO) and aviation (ICAO) to reduce greenhouse gas emissions to near zero by 2050 in order to contribute to the achievement of the Paris Agreement target. ICAO and IMO, responsible for about 2-3% of global greenhouse gas emissions, have failed to make decisions on the decarbonisation of sectors over the next 20-30 years. The IMO only plans to halve CO2 emissions by 2050, while ICAO has not set a long-term emission reduction target.

Many environmental NGOs are critical of ICAO`s decisions regarding the development of a climate change system. . . .