¹ On application, the FOEN may, in cases where European emission allowances are not recognised in the Swiss ETS in accordance with Article 4 paragraph 1 of the Agreement of 23 November 2017¹⁷⁹ between the Swiss Confederation and the European Union on the linking of their greenhouse gas emissions trading systems (ETS Agreement), count European emission allowances towards meeting the obligation of an ETS participant in accordance with Article 55 if the ETS participant proves that:

a.

it cannot meet its surrender obligation in accordance with Article 55 without these allowances being counted;

b.

it has participated in an auction of emission allowances in accordance with Article 48 and thus has made offers for the required quantity of emission allowances at market prices;

c.

procuring the lacking emission allowances issued by the Confederation in accordance with Article 45 paragraph 1 or Article 46e paragraph 1 outside auctions would significantly impair the ETS participant's competitiveness.

² To assess significant impairment to competitiveness, the FOEN shall also takes account in particular of the ETS participant's receipts from the sale of emission allowances issued by the Confederation.

³ The application must be submitted to the FOEN no later than 31 March of the following year the year for which the case of hardship is claimed for the first time. The FOEN decides annually on the quantity of eligible European emission allowances.

⁴ If no linking with the European Emissions Trading Registry exists or is likely to exist in the foreseeable future, the European emission allowances must be transferred annually to a Swiss Confederation account in the European Union Emissions Trading Registry.