The EU’s Emissions Trading Scheme (ETS) is a cost-effective market instrument that helps to tackle climate change and soon it will be linked to the Swiss ETS. On Friday 10 November, the Council of the EU give its approval for signing the agreement to link up the two schemes (see EUROPE 11844).
It now only requires the European Parliament’s approval for this agreement to be definitively concluded. Another step has therefore been taken towards creating a global carbons market.
In a press release, Siim Kiisler, the president of the Environment Council emphasised, “Reaching our Paris climate goals is a shared objective – no country can fight climate change on its own. By enlarging the emissions trading market, we are creating a solid path towards a cleaner future”.
The EU and Swiss ETS schemes follow the same principles: trading greenhouse gas allowances and an absolute cap on emissions. They also have similar structures.
Both schemes incorporate a linear reduction factor to annually decrease the quantity of CO2 allowances on the market and cover the 2013-2020 period. They also apply to large and energy-intensive installations in the industrial and energy sectors.
The main difference is that as opposed to the European ETS, the Swiss scheme does not yet include emissions from the aviation sector but Switzerland is currently working on measures to extend its ETS to this sector.
The agreement can only formally enter into force on 1 January 2018 if this condition has been met. (Original version in French by Aminata Niang)