In early February 2021, the European Union and Switzerland reached a new electricity agreement, which has been declared as a significant milestone in their diplomatic relations. This new agreement is expected to provide stability and predictability in the electricity trade between the two entities.
The previous agreement between the EU and Switzerland on electricity trade was concluded in 2007 and expired in 2018. The delay in the renewal of the agreement was mainly due to Switzerland`s struggle to align with the EU`s electricity market and climate policies.
The new agreement aims to ensure that Swiss hydropower can enter the EU market while safeguarding the EU`s internal market. The new pact will also facilitate the integration of the Swiss electricity market into the EU`s internal energy market.
With this agreement, Switzerland is committing to the EU`s climate policies, such as reducing greenhouse gas emissions by 55% by 2030. The country is also agreeing to set up a joint governance mechanism, which will ensure the effective implementation of the new agreement.
The agreement is expected to have a significant impact on both the EU`s and Switzerland`s energy sectors. Switzerland`s electricity producers will have better access to the EU market, while the EU will benefit from Switzerland`s renewable energy resources.
The new agreement will also reduce the regulatory barriers for electricity trade between the two entities, which will ultimately lead to increased competition, better prices, and more sustainable energy.
In conclusion, the new electricity agreement between the EU and Switzerland is a positive development that will benefit both parties. It is a testament to the importance of international cooperation in addressing global challenges such as climate change. The agreement will also contribute to the EU`s efforts to achieve its climate objectives and build a more integrated and sustainable energy market.