The third round of negotiations between Switzerland and the European Union on the linking of their emissions trading systems took place in Brussels on 26 October 2012. The aim of the future agreement is to create a joint market for carbon emission allowances.

The second round of negotiations between Switzerland and the European Union on linking trading systems for carbon emissions allowances has taken place in Zurich. Under an agreement on this issue, the two Parties would recognise each other’s emission allowances and Swiss businesses would gain access to the significantly larger and more liquid European emissions market.

Switzerland and the EU entered into negotiations on 8 March 2011 with a view to linking their systems for the trading of CO2 emissions allowances. An agreement enshrining the mutual recognition of emissions allowances would give Swiss companies access to the considerably larger and more liquid European emissions market and, therefore, greater flexibility in the fulfilment of their emissions targets.