The European Council has given the green light for the agreement linking the EU and Swiss emissions trading systems (ETS).
It will now forward it to the European Parliament for its consent in order to conclude the agreement.
The ETS is one of the main tools for cost effectively reducing greenhouse gas emissions, in particular from energy intensive industries and power plants.
The agreement is expected to be mutually beneficial for both the EU and Switzerland, allowing them to attain their emissions reducion targets, especially commitments taken under Paris Agreement.
Siim Kiisler, Minister for the Environment of the Republic of Estonia said: “I want to thank Switzerland and all EU member states for their confidence that mutual co-operation will make our emissions trading systems stronger and more cost effective.
“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 European Commission has allocated reduced quotas for the import and production of hydrofluorocarbons (HFCs) in a bid to reduce emissions.