Switzerland Tackle CO2 Law Revisions for Greener Tomorrow

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Switzerland Tackle CO2 Law Revisions for Greener Tomorrow

Posted by: Baris Karapinar
Category: ESG News

The National Council, as the second chamber, discussed the revision of the CO2 law for the post-2024 period. Resolving remaining differences between the two chambers is expected during the spring 2024 session. This follows the approval of the Climate and Innovation Law by the Swiss people this year. The CO2 law revision marks the initial step toward achieving the goal of net-zero greenhouse gas emissions by 2050.

The Federal Council aims to halve greenhouse gas emissions by 2030, adopting the message on the CO2 law revision from 2025 to 2030 on September 16, 2022. The project focuses on targeted incentives rather than new or higher taxes, directing investments toward climate-friendly solutions. Approximately 4.1 billion francs will be allocated between 2025 and 2030 for climate protection, with nearly 2.8 billion dedicated to building-related measures. The revised law encourages more efficient vehicles from importers, lowers CO2 targets for trucks, and supports the expansion of electric vehicle infrastructure.

Furthermore, the law mandates aviation fuel providers to blend renewable aviation fuels with kerosene supplied in Switzerland, aligning with EU regulations. Gasoline and diesel importers must now offset up to 90% of CO2 emissions, allowing compensation through climate protection projects abroad. Businesses, irrespective of sector, can be exempted from the CO2 tax by committing to reducing their greenhouse gas emissions, with a focus on long-term fossil fuel emission elimination.

The revised law also compels supervisory authorities to disclose climate-related risks, emphasizing financial risks stemming from climate change. Alongside technological advancements and sectoral developments, the project aims to achieve a 50% reduction in Switzerland’s emissions by 2030, with a two-thirds reduction domestically and one-third through international climate protection projects.

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