EU and Switzerland link emissions trading systems

The EU and Switzerland are joining their respective emissions trading systems following the adoption of the European Commission of two proposals to finalise an agreement between the two parties. The Swiss Federal Council has approved a deal to link the carbon markets of the country with the European Union, according to the European cement association, Cembureau.

The move sees participants in the EU Emissions Trading System (EU ETS) permitted to use the allowances from the Swiss system for compliance and vice versa, thus expanding opportunities for emissions reductions and lowering the cost of fighting climate change.

Both proposals will now be discussed by the European Council, which will require the consent of the European Parliament to conclude the agreement. Signature of the agreement is expected before the end of this year and will be followed by both sides ensuring that all criteria are met and implementation is prepared accordingly. Once technical arrangements for linking the two systems are finalised, the agreement will then be ratified by both sides. The agreement will enter into force at the start of the year following ratification, which is expected from 2019 onward.