The European Union (EU) and Switzerland have moved one step closer to linking their respective emissions trading systems (ETSs). The Swiss Federal Council approved the signing of the corresponding agreement at its meeting on 16 August 2017. On the same day, the European Commission’s adopted a proposal for the signature of the linking agreement, as well as for its ratification. Once the systems link, market participants in both the Swiss and EU ETSs will have the option of using allowances from both markets for compliance. Negotiations between the European Commission and Switzerland began seven years ago and were concluded on the technical level in January 2016. The linking process was put on hold following a Swiss referendum on immigration and worker quotas. Following a change in the legislation last December, the linking process was put back on track. For the link to enter into force, the European Council has to adopt the proposals, and the European Parliament must approve them. The Swiss Parliament also has to confirm the agreement’s ratification. According to press releases from the European Commission and Switzerland the agreement could be signed before the end of the year, with the link becoming operational in 2019.