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Document 52025PC0657
Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems as regards amending Annex I to the Agreement
Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems as regards amending Annex I to the Agreement
Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems as regards amending Annex I to the Agreement
COM/2025/657 final
EUROPEAN COMMISSION
Brussels, 31.10.2025
COM(2025) 657 final
2025/0334(NLE)
Proposal for a
COUNCIL DECISION
on the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems as regards amending Annex I to the Agreement
(Text with EEA relevance)
EXPLANATORY MEMORANDUM
1.Subject matter of the proposal
This proposal concerns the decision establishing the position to be taken on the Union's behalf in the Joint Committee established by the Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems, as regards amending Annex I to the Agreement
2.Context of the proposal
2.1.The Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems
The Agreement between the European Union and the Swiss Confederation linking their greenhouse gas emissions trading systems 1 (‘the Agreement’) connects the EU Emissions Trading System (EU ETS) with the Emissions Trading System of Switzerland, by allowing allowances issued in one system to be traded and used for compliance in the other one. The Agreement entered into force on 1 January 2020.
2.2.The Joint Committee
The Joint Committee, established by Article 12 of the Agreement, is responsible for administering the Agreement and ensuring its implementation. It can decide to adopt new annexes to the Agreement or amend existing ones.
Article 13(2) of the Agreement provides that the Joint Committee may decide to adopt a new Annex or to amend an existing Annex to the Agreement.
2.3.The envisaged act of the Joint Committee
During its eighth meeting, which will be held in 2025, or earlier by means of the written procedure pursuant to Article 8(4) of the Rules of Procedure of the Joint Committee 2 , the Joint Committee is to adopt a decision regarding amendments to Annex I to the Agreement (‘the envisaged act’).
The purpose of the envisaged act is to align the essential criteria laid down in Annex I to updated legislation in both the European Union and the Swiss Confederation.
The envisaged act will become binding on the Parties in accordance with Article 13(2) of the Agreement. Furthermore, and in accordance with Article 12(3) of the Agreement, decisions taken by the Joint Committee in the cases provided for in this Agreement will, upon their entry into force, be binding on the Parties.
3.Position to be taken on the Union's behalf
The Council Decision based on this proposal from the Commission determines the position of the European Union on the Decision of the Joint Committee to be taken on amending Annex I.
Amendments to Annex I to the Agreement are necessary in view of the changes to the regulatory environment that evolved in both the European Union and Switzerland since the last amendments in Decision No 1/2023 of the Joint Committee 3 . The European Parliament and the Council adopted changes 4 to Directive 2003/87/EC 5 with a view to determining an appropriate contribution of the emissions trading system of the EU to the emissions reduction target by 2030 laid down in Regulation (EU) 2021/1119 of the European Parliament and of the Council 6 . These changes have to be reflected in Annex I to the Agreement to maintain compatibility and market integrity of the linked systems, avoid distortion of competition between as well as carbon leakage from the linked systems.
In part A (stationary installations) of Annex I, the relevant changes to the text of the EU column that is meant to demonstrate compliance with the essential criteria following the adoption of the revised version of Directive 2003/87/EC 7 mainly concern editorial adaptations with respect to the entry into force of the relevant legal texts on the EU side (amendments to essential criteria no 2, 3, 6, 10, 11, 12, 13) and updates of the legal references (amendments to essential criteria no 5 and 10). Only the text of criterion 4 has been amended with a view to representing the outcome of the revised Directive 2003/87/EC 8 in both columns of the EU and Switzerland. All other amendments to the column of Switzerland in Part A of Annex I are editorial adaptations with respect to the entry into force of the relevant legal texts.
As for Part B (aviation operators) of Annex I, compliance of the text in the column of the EU with the essential criteria requires changes with respect to the entry into force of the relevant legal provisions (criteria 12 and 14) and, in addition, updating the legal references (criteria 2, 4, 5 and 7). Furthermore, the text of criteria 4, 11 and 12 in the EU column has been adjusted to correctly depict the outcome of the revision of Directive 2003/87/EC 9 . For the same reason, the title of essential criteria 8 has been changed and the text in the EU column accordingly adjusted. This also goes for criterion 6, where the columns of the EU and Switzerland have been merged and a common text introduced.
In the Swiss column of Part B, editorial changes with respect to the entry into force of the relevant Swiss legislation became necessary for essential criteria 2, 5, 13, 14 and 15. This also applies to criteria 4, 8 and 12, which, on top, show an update of the legal reference. Furthermore, like in the EU column, the texts of criteria 4, 7 and 11 of the Swiss column have been adjusted to mirror the approach described in the EU column.
4.Legal basis
4.1.Procedural legal basis
4.1.1.Principles
Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement.’
4.1.2.Application to the present case
The Joint Committee is a body set up pursuant to Article 12 of the Agreement.
The act which the Joint Committee is called upon to adopt constitutes an act having legal effects. The envisaged act will be binding under international law in accordance with Article 12(3) of the Agreement.
The envisaged act does not supplement or amend the institutional framework of the Agreement.
Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.
4.2.Substantive legal basis
4.2.1.Principles
The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act in respect of which a position is taken on the Union's behalf.
4.2.2.Application to the present case
The main objective and content of the envisaged act relate to environment.
Therefore, the substantive legal basis of the proposed decision is Article 192(1) TFEU.
4.3.Conclusion
The legal basis of the proposed decision should be Article 192(1) TFEU, in conjunction with Article 218(9) TFEU.
5.Publication of the envisaged act
As the act of the Joint Committee will amend Annex I to the Agreement, it is appropriate to publish it in the Official Journal of the European Union after its adoption.
2025/0334 (NLE)
Proposal for a
COUNCIL DECISION
on the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems as regards amending Annex I to the Agreement
(Text with EEA relevance)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1), in conjunction with Article 218(9) thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1)The Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems (‘the Agreement’) was concluded by the Union by Council Decision (EU) 2018/219 10 and entered into force on 1 January 2020.
(2)Pursuant to Article 12(3) of the Agreement, the Joint Committee may adopt decisions that are to, upon their entry into force, be binding on the Parties.
(3)Article 13(2) of the Agreement provides that the Joint Committee may amend the Annexes to the Agreement.
(4)It is appropriate to restore consistency with legal provisions applicable to the emissions trading systems of the European Union and the Swiss Confederation following the revision of Directive 2003/87/EC of the European Parliament and of the Council 11 by means of Directives (EU) 2023/958 12 and 2023/959 13 .
(5)The Joint Committee, during its eighth meeting, or earlier by means of the written procedure pursuant to Article 8(4) of the Rules of Procedure of the Joint Committee, is expected to adopt a Decision amending Annex I to the Agreement. That Decision will be binding on the Union.
(6)It is therefore necessary to establish the position to be taken on the Union's behalf in the Joint Committee with regard to the amendment of Annex I to the Agreement.
(7)The position of the Union should be based on the attached draft Decision in order to maintain compatibility and market integrity of the two linked systems and to avoid distortion of competition and carbon leakage,
HAS ADOPTED THIS DECISION:
Article 1
The position to be taken on the Union's behalf, during the eighth meeting of the Joint Committee, or earlier by means of the written procedure pursuant to Article 8(4) of the Rules of Procedure of the Joint Committee, with regard to the amendment of Annex I to the Agreement shall be based on the draft Decision of the Joint Committee attached to this Decision.
Minor changes to the draft Decision may be agreed to by the representatives of the Union in the Joint Committee without further decision of the Council.
Article 2
This Decision shall enter into force on the day of its adoption.
Done at Brussels,
For the Council
The President
EUROPEAN COMMISSION
Brussels, 31.10.2025
COM(2025) 657 final
ANNEX
to the
Proposal for a Council Decision
on the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems
as regards amending Annex I to the Agreement
ANNEX
DRAFT
DECISION No 1/2025 OF THE JOINT COMMITTEE ESTABLISHED BY THE AGREEMENT BETWEEN THE EUROPEAN UNION AND THE SWISS CONFEDERATION ON THE LINKING OF THEIR GREENHOUSE GAS EMISSIONS TRADING SYSTEMS
of …
as regards the amendment of Annex I to the Agreement
THE JOINT COMMITTEE,
Having regard to the Agreement between the European Union and the Swiss Confederation on the linking of their greenhouse gas emissions trading systems 1 (hereinafter ‘the Agreement’), and in particular Article 13(2) thereof,
Whereas:
(1)The adoption of Decision No 2/2019 of the Joint Committee of 5 December 2019 fulfilled the conditions for linking set out in the Agreement and enabled the Agreement to enter into force on 1 January 2020.
(2)In accordance with Article 13(2) of the Agreement, the Joint Committee may amend the Annexes to the Agreement.
(3)In accordance with Article 10(1) of the Agreement, the Agreement is without prejudice to the right of each Party to amend or adopt legislation of relevance to this Agreement, including the right to adopt more stringent protective measures.
(4)Directive (EU) 2023/958 of the European Parliament and of the Council 2 and Directive (EU) 2023/959 of the European Parliament and of the Council 3 amended Directive 2003/87/EC of the European Parliament and of the Council 4 with a view to aligning the contribution of the EU Emissions Trading System (EU ETS) to a net domestic reduction of at least 55% in greenhouse gas emissions by 2030 compared to 1990, as agreed by the European Council in December 2020.
(5)In its 7th meeting on 4 December 2024, the Joint Committee agreed to cover amendments to Annex I of the Agreement that accrue from the revision of Directive 2003/87/EC by a single update of Annex I to the Agreement in 2025.
(6)It is therefore appropriate, in accordance with Article 13(7) of the Agreement, to reflect relevant changes accruing from the revision of Directive 2003/87/EC in the essential criteria laid down in Annex I of the Agreement so that compatibility of the two emissions trading systems is maintained, market integrity ensured, and distortion of competition excluded,
HAS ADOPTED THIS DECISION
Article 1
Parts A and B of Annex I to the Agreement are replaced by the text set out in the Annex to this Decision.
Article 2
This Decision shall enter into force on the date of its adoption.
For the Joint Committee
|
Secretary for the European Union |
The Chair |
Secretary for Switzerland |
ANNEX
‘A. Essential criteria for stationary installations
|
Essential criteria |
In the EU ETS |
In the ETS of Switzerland |
|
|
1. |
Mandatory nature of the participation in the ETS |
Participation in the ETS shall be mandatory for the installations carrying out the activities and emitting the greenhouse gases (‘GHG’) listed below. |
Participation in the ETS shall be mandatory for the installations carrying out the activities and emitting the GHG listed below. |
|
2. |
The ETS shall cover at least the activities set out in: |
- Annex I to Directive 2003/87/EC, as in force on 1 January 2025. |
- Article 40(1) of and Annex 6 to the CO2 Ordinance, as in force on 1 January 2025. |
|
3. |
The ETS shall cover at least the GHGs set out in: |
- Annex II to Directive 2003/87/EC, as in force on 1 January 2025. |
- Article 1(1) of the CO2 Ordinance, as in force on 1 January 2025. |
|
4. |
A cap shall be set for the ETS, which is at least as stringent as the one in: |
- Articles 9 and 9a of Directive 2003/87/EC, as in force on 1 January 2025. The linear reduction factor is 4,3 % per year from 2024 to 2027 and 4,4% as from 2028. It will apply to all sectors in accordance with Directive 2003/87/EC, as in force on 1 January 2025. |
-Article 18(1) and (2) of the CO2 Act -Article 45(1) of and Annex 8 point 1 to the CO2 Ordinance, as in force on 1 January 2025. The linear reduction factor is 6,4 % in 2025 as an adjustment to result in the same level of reduction of the cap for the period 2021 to 2025 as determined by the linear reduction factor of the EU ETS. As of 2026, the linear reduction factor is 4.3% per year and 4,4% as from 2028. It will apply to all sectors covered by the Swiss ETS. |
|
5. |
Market stability mechanism |
In 2015, the EU introduced the Market Stability Reserve (Decision (EU) 2015/1814), the operation of which was reinforced by Directive (EU) 2018/410 and Directive (EU) 2023/959. The EU legislation provides that, by 15 May each year and starting in 2017, the Commission shall publish the total number of allowances in circulation (TNAC). This figure determines whether some of the allowances intended to be auctioned should be placed into the reserve or be released from the reserve. |
-Article 19(6) of the CO2 Act -Article 48(1bis) and (5) of, and Annex 8 point 2 to the CO2 Ordinance, as in force on 1 January 2025. The Swiss legislation provides for a reduction in auction volume conditional on the total number of allowances in circulation. In addition, the emission allowances which are not assigned to an auction are cancelled at the end of the trading period. |
|
6. |
The level of market oversight of the ETS shall be at least as stringent as the ones in: |
- Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MIFID II) - Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (MIFIR) - Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (MAR) - Directive 2014/57/EU of the European Parliament and of the Council of 16 April 2014 on criminal sanctions for market abuse (market abuse directive) (CS‑MAD) - Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (AMLD), as in force on 1 January 2025. |
- Federal Act on the Swiss Financial Market Supervisory Authority of 22 June 2007 - Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading of 19 June 2015 - Federal Act on Financial Institutions of 15 June 2018 - Federal Act on Combating Money Laundering and Terrorist Financing of 10 October 1997, as in force on 1 January 2025. Swiss financial market regulation does not define the legal nature of emission allowances. In particular, emission allowances are not qualified as securities in the Financial Markets Infrastructure Act and therefore are not tradeable on regulated trading venues. Because emission allowances do not qualify as securities, Swiss securities regulation does not apply to OTC emission allowances trading on secondary markets. Derivative contracts qualify as securities according to the Financial Markets Infrastructure Act. This also includes derivatives that have emission allowances as their underlying instrument. OTC traded derivatives on emission allowances between non‑financial as well as financial counterparties is covered by the provisions in the Financial Market Infrastructure Act. |
|
7. |
Cooperation regarding market oversight |
The Parties shall establish appropriate cooperation arrangements regarding market oversight. Those cooperation arrangements shall concern the exchange of information and the enforcement of obligations arising under their respective market oversight regime. The Parties shall inform the Joint Committee about any such arrangements. |
|
|
8. |
The qualitative limits for international credits shall be at least as stringent as those set out in: |
No entitlements to use international credits are provided for in Union law from 2021 onwards. |
No entitlements to use international credits are provided for in Swiss law from 2021 onwards. |
|
9. |
The quantitative limits for international credits shall be at least as stringent as those set out in: |
No entitlements to use international credits are provided for in Union law from 2021 onwards. |
No entitlements to use international credits are provided for in Swiss law from 2021 onwards. |
|
10. |
Free allocation shall be calculated on the basis of benchmarks and adjustment factors. Allowances which are not allocated free of charge shall be auctioned or invalidated. To this end, the ETS shall meet at least: |
- Articles 10, 10a, 10b and 10c of Directive 2003/87/EC - Commission Implementing Regulation (EU) 2021/447 of 12 March 2021 determining revised benchmark values for free allocation of emission allowances for the period from 2021 to 2025 pursuant to Article 10a(2) of Directive 2003/87/EC of the European Parliament and of the Council, as applicable in the period from 1 January 2021 to December 2025 - Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading system - Commission Delegated Regulation (EU) 2024/873 of 30 January 2024 amending Delegated Regulation (EU) 2019/331 as regards transitional Union-wide rules for harmonised free allocation of emission allowances - Commission Delegated Decision (EU) 2019/708 of 15 February 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council concerning the determination of sectors and subsectors deemed at risk of carbon leakage for the period 2021 to 2030 - any cross-sectoral correction factor in the EU ETS in 2021-2025 or 2026-2030, - Commission Implementing Regulation (EU) 2025/772 of 16 April 2025 amending and correcting Implementing Regulation (EU) 2019/1842 laying down rules for the application of Directive 2003/87/EC of the European Parliament and of the Council as regards further arrangements for the adjustments to free allocation of emission allowances due to activity level changes. as in force on 1 January 2025. |
-Article 18(3) and Article 19 of the CO2 Act -Article 45(2) to (6) and Articles 46, 46a, 46b and 48 of, and Annex 9 to the CO2 Ordinance, as in force on 1 January 2025. In the period from 2021 to 2025, free allocations do not exceed the levels of free allocations given to installations in the EU ETS. |
|
11. |
The ETS shall provide for penalties in the same circumstances and of the same magnitude as those set out in: |
- Article 16 of Directive 2003/87/EC, as in force on 1 January 2025. |
-Article 21 of the CO2 Act -Article 56 of the CO2 Ordinance, as in force on 1 January 2025. |
|
12. |
Monitoring and reporting in the ETS shall at least be as stringent as in: |
- Article 14 of, and Annex IV to, Directive 2003/87/EC - Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012, as in force on 1 January 2025. |
-Article 20 of the CO2 Act -Articles 50 to 53 of, and Annexes 16, point 1, and 17, point 1 to the CO2 Ordinance, as in force on 1 January 2025. |
|
13. |
Verification and accreditation in the ETS shall at least be as stringent as in: |
- Article 15 of, and Annex V to, Directive 2003/87/EC - Commission Implementing Regulation (EU) 2018/2067 of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council, as in force on 1 January 2025. |
- Articles 51 to 54 of the CO2 Ordinance, as in force on 1 January 2025. |
B. Essential criteria for aviation
|
Essential criteria |
For the EU |
For Switzerland |
|
|
1. |
Mandatory nature of the participation in the ETS |
Participation in the ETS shall be mandatory for aviation activities in accordance with the criteria listed below. |
Participation in the ETS shall be mandatory for aviation activities in accordance with the criteria listed below. |
|
2. |
Coverage of aviation activities and GHG and attribution of flights and their respective emissions according to the departing flight principle as set out in: |
- Directive 2003/87/EC, as amended by Directive 2023/959 of the European Parliament and of the Council of 10 May 2023 amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Unions greenhouse gas emission trading system - Commission Delegated Decision (EU) 2020/1071 of 18 May 2020 amending Directive 2003/87/EC of the European Parliament and of the Council, as regards the exclusion of incoming flights from Switzerland from the EU emission trading system - Commission Delegated Regulation (EU) 2021/1416 of 17 June 2021 amending Directive 2003/87/EC of the European Parliament and of the Council as regards the exclusion of incoming flights from the United Kingdom from the Union emissions trading system - Commission Delegated Regulation (EU) 2019/1122 of 12 March 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council as regards the functioning of the Union Registry as in force on 1 January 2025. As from 1 January 2020, flights from an aerodrome situated in the territory of the European Economic Area (‘EEA’) to aerodromes situated in the territory of Switzerland shall be covered by the EU ETS. Flights from aerodromes situated in the territory of Switzerland and the United Kingdom to aerodromes situated in the territory of the EEA shall be excluded from the EU ETS, pursuant to Article 25a of Directive 2003/87/EC. |
1. Scope of coverage Flights which arrive at, or depart from, an aerodrome situated in the territory of Switzerland, except flights which depart from an aerodrome situated in the territory of the EEA . Any temporary derogations as regards the scope of the ETS, such as derogations in the sense of Article 28a of Directive 2003/87/EC, may apply with regard to the ETS of Switzerland in accordance with those introduced in the EU ETS. Only CO2 emissions shall be covered for aviation activities. 2. Limitations of coverage General coverage mentioned in point 1 shall not include: 1. Flights performed exclusively for the transport on an official mission of a reigning monarch and his/her immediate family, heads of State, heads of Government and Government ministers, where this is substantiated by an appropriate status indicator in the flight plan. 2. Military, customs and police flights. 3. Flights related to search and rescue, fire‑fighting flights, humanitarian flights and emergency medical service flights. 4. Flights performed exclusively under visual flight rules as defined in Annex 2 to the Convention on International Civil Aviation of 7 December 1944. 5. Flights terminating at the aerodrome from which the aircraft has taken off and during which no planned intermediate landing has been made. 6. Training flights performed exclusively in order to acquire or maintain a licence, or a rating in the case of cockpit flight crew where this is substantiated by an appropriate remark in the flight plan, provided that the flight does not serve for the transport of passengers and/or cargo or for the positioning or ferrying of the aircraft. 7. Flights performed exclusively for the purpose of scientific research. 8. Flights performed exclusively for the purpose of checking, testing or certifying aircraft or airborne or ground‑based equipment. 9. Flights performed by aircraft with a certified maximum take‑off mass of less than 5 700 kilograms. 10. Flights of commercial aircraft operators with total annual emissions lower than 10 000 tonnes on flights covered by the ETS of Switzerland or fewer than 243 flights per period for three consecutive four‑month periods within the scope of the ETS of Switzerland, if the operators are not covered by the EU ETS. 11. Flights of non‑commercial aircraft operators covered by the ETS of Switzerland with total annual emissions lower than 1 000 tonnes in accordance with the respective derogation applied in the EU ETS, if the operators are not covered by the EU ETS. These limitations of coverage are provided for in: -Article 16a of the CO2 Act -Article 46d and Article 55(2) of, and Annex 13 to, the CO2 Ordinance, as in force on 1 January 2025. |
|
3. |
Exchange of relevant data regarding the application of the limitations of coverage of aviation activities |
The two parties shall cooperate regarding the application of the limitations of coverage in the ETS of Switzerland and the EU ETS for commercial and non‑commercial operators in accordance with this Annex. In particular, both parties shall ensure the timely transfer of all relevant data to enable correct identification of the flights and aircraft operators that are covered by the ETS of Switzerland and the EU ETS. |
|
|
4. |
Cap (total quantity of allowances to be allocated to aircraft operators) |
Article 3c of Directive 2003/87/EC, as in force on 1 January 2025. Article 3c(5) of Directive 2003/87/EC as in force on 1 January 2024 provides for a total quantity of allowances allocated to aircraft operators on the basis of total allocation of allowances to aircraft operators performing aviation activities in accordance with Annex I to Directive 2003/87/EC in 2023 reduced by the linear reduction factor, as referred to in Article 9 of Directive 2003/87/EC and applicable as from 1 January 2025. Article 3c(7) of Directive 2003/87/EC as in force on 1 January 2024 provides, in respect of flights from and to an aerodrome located in the EEA, and to Switzerland or the United Kingdom, but not covered in 2023, that the total quantity of allowances shall be increased by the level of allocation as if these flights were included in the ETS in 2023. The linear reduction factor, as referred to in Article 9 of Directive 2003/87/EC and applicable as from 1 January 2024 applies. |
The cap shall reflect a similar level of stringency as the one in the EU ETS, in particular with regard to the reduction percentage rate between years and trading periods. The allowances in the cap shall be auctioned or allocated free of charge. This allocation may be reviewed in accordance with Articles 6 and 7 of this Agreement. As of 2024, the total quantity of allowances is increased in respect of flights from an aerodrome in Switzerland to an aerodrome located in an outermost region of the EU by the level of allocation as if these flights wer included in the ETS in 2023. The linear reduction factor as specified in Annex 15 to the CO2-Ordinance, applies. This is provided for in: -Article 18 of the CO2 Act -Articles 46e of, and Annex 15 to the CO2 Ordinance, as in force on 1 January 2025. |
|
5. |
Allocation of allowances for aviation through auctioning |
- Article 3d (1) and (1a) and Article 28a(2) of Directive 2003/87/EC, as in force on 1 January 2025. |
Swiss emission allowances to be auctioned shall be auctioned by the Swiss competent authority. Switzerland is entitled to the revenues generated from the auctioning of Swiss allowances. This is provided for in: -Article 19a(2) and (4) of the CO2 Act -Article 48 of, and Annex 15 to, the CO2 Ordinance, as in force on 1 January 2025. Modified benchmarks (see criterion no 7) are used in 2024 and 2025 with the same effect as the increased auctioning rate in the EU ETS. These benchmarks are provided for in: - Article 46f(1) of, and Annex 15 to, the CO2 Ordinance, as in force on 1 January 2025. |
|
6. |
Special reserve for certain aircraft operators |
The special reserves are not anymore operational. |
|
|
7. |
Benchmark for free allocation of allowances to aircraft operators |
Article 3d(1a) of Directive 2003/87/EC, as in force on 1 January 2025. |
The benchmark shall be no higher than the one in the EU ETS. The annual benchmark is -0,000642186914222035 allowances per tonne-kilometre for the years 2020 to 2023 -0,000481640185666526 allowances per tonne-kilometre for the year 2024 -0,000321093457111017 allowances per tonne-kilometre for the year 2025 These benchmarks are provided for in: - Article 46f(1) of, and Annex 15 to, the CO2 Ordinance, as in force on 1 January 2025. |
|
8. |
Free allocation of allowances for aircraft operators |
Article 3d(1a) of Directive 2003/87/EC, as in force on 1 January 2025. |
The number of emission allowances allocated free of charge to aircraft operators is calculated by multiplying its reported tonne-kilometre data performed in the reference year by the applicable benchmark. This free allocation is provided for in: -Article 19a(3) and (4) of the CO2 Act -Articles 46f and 46g of, and Annex 15 to, the CO2 Ordinance, as in force on 1 January 2025. |
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|
The qualitative limits for international credits shall be at least as stringent as those set out in: |
No entitlements to use international credits are provided for in Union law from 2021 onwards. |
No entitlements to use international credits are provided for in Swiss law from 2021 onwards. |
|
10. |
Quantitative limits for the use of international credits |
No entitlements to use international credits are provided for in Union law from 2021 onwards. |
No entitlements to use international credits are provided for in Swiss law from 2021 onwards. |
|
11. |
Acquisition of tonne‑kilometre data for reference year |
From 2024 onwards, the tonne-kilometer data does not apply. |
In accordance with the Ordinance on the Acquisition of Tonne‑Kilometre Data and the Preparation of Monitoring Plans relating to Distances covered by Aircraft, as in force on the date of entry into force of this Agreement, the reference year for the acquisition of data for Swiss aviation activities shall be 2018. This is provided for in: -Article 19a(3) and (4) of the CO2 Act -Articles 46f and 46g of, and Annex 15 to the CO2 Ordinance- as in force on 1 January 2025. |
|
12. |
Monitoring and reporting |
Article 14 of, and Annex IV to, Directive 2003/87/EC - Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012 - Commission Delegated Regulation (EU) 2019/1603 of 18 July 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council as regards measures adopted by the International Civil Aviation Organisation for the monitoring, reporting and verification of aviation emissions for the purpose of implementing a global market‑based measure, as in force on 1 January 2025. Monitoring and reporting on non-CO2 aviation effects as set out in Article 14(5) of Directive 2003/87/EC shall apply as of 2025. |
Monitoring and reporting provisions shall reflect the same level of stringency as in the EU ETS. This is provided for in: -Article 20 of the CO2 Act -Articles 50 to 52 of, and Annexes 14, 16 and 17 to, the CO2 Ordinance, as in force on 1 January 2025. |
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13. |
Verification and accreditation |
- Article 15 of, and Annex V to, Directive 2003/87/EC - Commission Implementing Regulation (EU) 2018/2067 of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council, as in force on 1 January 2025. |
Verification and accreditation provisions shall reflect the same level of stringency as in the EU ETS. This is provided for in: - Article 52(4) and (5) of, and Annex 18 to, the CO2 Ordinance, as in force on 1 January 2025. |
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14. |
Administration |
The criteria laid down in Article 18a of Directive 2003/87/EC shall apply. To this effect and pursuant to Article 25a of Directive 2003/87/EC, Switzerland shall be considered as an Administering Member State as regards the attribution of the administration of aircraft operators to Switzerland and EU (EEA) Member States. Pursuant to Article 25a of Directive 2003/87/EC, the competent authorities of the EU (EEA) Member States shall be responsible for all the tasks related to the administration of aircraft operators attributed to them, including the tasks relating to the ETS of Switzerland (e.g. the reception of verified emission reports covering both EU and Swiss aviation activities, administration of aircraft operators and accounts, compliance and enforcement). The European Commission shall agree bilaterally with the Swiss competent authorities on handing over the relevant documentation and information. In particular, the European Commission shall ensure the transfer to aircraft operators administered by Switzerland of the amount of free allocation of EU allowances. In case of a bilateral agreement regarding the administration of flights operating in relation to the EuroAirport Basel‑Mulhouse‑Freiburg not involving any amendment to Directive 2003/87/EC, the European Commission shall, as appropriate, facilitate the implementation of such agreement, provided that this does not result in double counting. |
Switzerland shall be responsible for the administration of aircraft operators: - with a valid operating licence granted by Switzerland, or - with the greatest estimated attributed aviation emissions in Switzerland under the linked ETS. Swiss competent authorities shall be responsible for all the tasks related to the administration of aircraft operators attributed to Switzerland, including the tasks relating to the EU ETS (e.g. the reception of verified emission reports covering both EU and Swiss aviation activities, administration of aircraft operators and accounts, compliance and enforcement). The Swiss competent authorities shall agree bilaterally with the European Commission on handing over the relevant documentation and information. In particular, the Swiss competent authorities shall transfer to aircraft operators administered by the EU (EEA) Member States the amount of free allocation of Swiss allowances. This is provided for in: -Article 39(1bis) of the CO2 Act -Article 46d of, and Annex 14 to, the CO2 Ordinance, as in force on 1 January 2025. |
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15. |
Surrendering |
When assessing compliance of aircraft operators on the basis of the amount of surrendered allowances, the competent authorities of the EU (EEA) Member States shall first account for emissions covered by the ETS of Switzerland and use the remaining amount of surrendered allowances to account for emissions covered by the EU ETS. |
When assessing compliance of aircraft operators on the basis of the amount of surrendered allowances, the competent authorities of Switzerland shall first account for emissions covered by the EU ETS and use the remaining amount of surrendered allowances to account for emissions covered by the ETS of Switzerland. This is provided for in: - Article 55 (2bis) of the CO2 Ordinance as in force on 1 January 2025. |
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16. |
Legal enforcement |
Parties shall enforce the provisions of their respective ETS in relation to aircraft operators that do not fulfil the obligations in the respective ETS, regardless of whether the operator is administered by an EU (EEA) competent authority or by a Swiss competent authority, in case enforcement by the authority administering the operator requires additional action. |
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17. |
Administrative attribution of aircraft operators |
Pursuant to Article 25a of Directive 2003/87/EC, the aircraft operator’s list published by the European Commission, in accordance with Article 18a(3) of Directive 2003/87/EC, shall specify the administering State, including Switzerland, for each aircraft operator. Aircraft operators attributed to Switzerland for the first time after the entry into force of this Agreement shall be administered by Switzerland after 30 September of the year of attribution and once the provisional registry link is operational. The two parties shall cooperate on sharing relevant documentation and information. The attribution of an aircraft operator shall not affect the coverage of that aircraft operator by the respective ETS (i.e. an operator covered by the EU ETS that is administered by the Swiss competent authority shall have the same level of obligations under the EU ETS alongside its coverage under the ETS of Switzerland, and vice versa). |
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18. |
Modalities for implementation |
Any further modalities needed for the organisation of the work and cooperation within the one‑stop shop for aviation account holders shall be developed and adopted by the Joint Committee after signature of this Agreement, in accordance with Articles 12, 13 and 22 of this Agreement. These modalities shall apply from the date that this Agreement applies. |
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19. |
Assistance from Eurocontrol |
For the aviation part of this Agreement, the European Commission shall include Switzerland within the mandate given to Eurocontrol in relation to the EU ETS. |
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