Federal Council Opens CO2 Ordinance for Public Input

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Federal Council Opens CO2 Ordinance for Public Input

Posted by: Baris Karapinar
Category: ESG News

On June 26, 2024, Switzerland’s Federal Council started a public consultation on the CO2 Ordinance, which details the planned reduction of greenhouse gas emissions across various sectors by 2030. This ordinance aligns with the goals set by the revised CO2 Act from March 2024, aiming to cut Switzerland’s emissions by half compared to 1990 by 2030.

The ordinance emphasizes enhancing adaptations to climate change, offering federal support for cantons, municipalities, and companies to manage impacts such as flooding, droughts, and heat stress. For industries, it introduces three new financial aids, encouraging significant reductions in emissions. Industries participating in the Swiss Emissions Trading System can seek funds for emission-reducing projects. The ordinance also supports the production and use of biogas and solar heat.

In transportation, the focus is on promoting electric buses and international night trains, maintaining the obligation for fuel importers to offset a part of CO2 emissions through domestic and international projects. From 2025, new CO2 targets for vehicles, including heavy trucks, will be enforced.

The aviation sector remains part of the emissions trading system, with stricter reductions in emission rights from 2025 and mandatory blending of renewable fuels into aviation fuels.

The building sector will continue with the existing building program and a CO2 tax, which is retained at 120 francs per ton. This tax’s revenue continues to be partly refunded to the population and businesses.

The consultation will be open until October 17, 2024, inviting input on these measures designed to achieve net-zero emissions by 2030 as part of the broader Climate and Innovation Act goals.

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