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Linking the Swiss and EU CO2 emissions markets would be beneficial for both environmental policy and the economy. Negotiations on this matter are already in progress.
Switzerland and the European Union (EU) operate separate emissions trading schemes. The EU scheme (EU ETS) includes approximately 12,000 companies with around 2 billion tonnes of CO2, while the Swiss ETS involves approximately 50 firms with around 6 million tonnes of CO2.
Switzerland would like to link both systems and create one CO2 market. To achieve this, emission allowances would need to be mutually recognized in a bilateral agreement. The provisions of the revised CO2 Act, which came into force on 1 January 2013, are in large part compatible with the EU ETS.
Switzerland believes that environmental policy and the economy would be benefitted by linking the two systems:
The EU is also interested in linking its ETS with the Swiss ETS. Aviation is also being discussed in the negotiations.
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