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The EU and Switzerland will create a bridge between their carbon trading markets by 2019, the European Commission said. For the first time, the EU has linked its carbon market, which is the largest in the world, with a third country. The European Commission today adopted two proposals aimed at finalizing and ratification of the agreement that the Council of the EU and the European Parliament have yet to adopt.

The signing of an agreement “could be done before the end of the year”, according to the Commission. Its entry into force can still be expected in 2019.

Once the agreement with Switzerland has entered into force, carbon market participants in the EU will be able to use funding from the Swiss system and vice versa, explains the European Commission

The carbon trading system is perceived by the EU as a major mechanism in the fight against climate change, which limits the carbon dioxide released into the atmosphere.

It covers nearly 45% of greenhouse gas emissions in the EU or the most energy-intensive sectors (power plants and industry).