TESTA helps Switzerland link its greenhouse gas emissions trading system with the EU's system

Thanks to TESTA, Switzerland becomes the first country to successfully link its greenhouse gas emissions trading system with the EU emissions trading system (EU ETS). 

 

TESTA contributes to the EU-wide fight against Climate Change by supporting Information System that helps reducing greenhouse gas emissions cost-effectively. Conscious of the global challenge presented by climate change and the international efforts required to reduce greenhouse gas emissions to combat climate change, the European Union and the Swiss Confederation agreed on the linking of their greenhouse gas Emissions Trading Systems.



This Agreement has been ratified by the representatives of both parties and came into force on 1 January 2020. Since June 2020, the exchange of sensitive information such as emission allowances between the two systems has become possible thanks to the use of TESTA, a data communication network service supported by ISA², and the deployment of a provisional solution which immediately ensures the required level of security.

 

The Union Registry serves to guarantee accurate accounting for all allowances issued under the EU emissions trading system (EU ETS). 

The registry keeps track of the ownership of allowances held in electronic accounts, just as a bank has a record of all its customers and their money.

 

Linking the Swiss ETS with that of the EU will be beneficial for both environmental policy and the economy. From 2020 onwards, companies in the Swiss ETS are able to trade emission allowances in the larger EU emissions market. In addition, emissions from civil aviation is included in the Swiss ETS, as is already the case in the EU. The linking of the two schemes marks the first ETS linking between states anywhere in the world. 

 

You can find further details on the Council Decision (EU) 2019/2106.