EU & Swiss ETS linking Agreement
EU ETS and Swiss ETS Linking Agreement:
The linking agreement between EU ETS and Swiss ETS was signed in Bern on 23rd November 2017 and entered into force on 1st January 2020. The EU-Swiss ETS linking agreement is a first of its kind under the Paris agreement on climate change.
As per the linking agreement Article 4 (1), Emission allowances that can be used for compliance under the ETS of one Party shall be recognized for compliance under the ETS of the other Party. This means the aircraft operator from the EU may use Swiss allowances and Swiss operators may use the EU allowances to compensate for their emissions.
The significant benefits of linking emission trading schemes will be improved burden-sharing, more efficient emission reductions, and decreased overall compliance costs. Experts believe that the negotiations and implementation of this agreement can offer a path for future similar efforts and it could enable access to the broader international carbon markets.
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