Under the Paris Agreement, Switzerland is committed to reducing its greenhouse gas emissions to half of their 1990 levels by 2030. Following the unexpected rejection of the revised CO₂ Act at the ballot box on 13 June 2021, the National Council and Council of States waved through a transitional law. This extends the existing CO2 Act and climate protection instruments until the end of 2024. At the same time, the Federal Council and Parliament have been instructed to revise the CO2 Act in such a way that Switzerland can achieve its climate protection targets by 2030 despite the defeat at the ballot box, taking into account the aspects criticised by the electorate.
On 15 March 2024, the National Council and the Council of States agreed on a new legal text that will enter into force on 1 January 2025. However, this newly revised CO2 Act is much weaker than the original bill. Instead of bans as originally planned, financial incentives, investments in climate protection and technological progress are intended to help reduce CO2 emissions.
The Newly Revised CO₂ Act
The CO2 Act newly revised in 2024 will ensure that the existing instruments for reducing Switzerland’s CO2 emissions remain in place. Incentive levies on CO2 emissions will remain at the same level. Part of the revenue from these levies will go into a national climate fund, while another part will be redistributed to the population via health insurance premiums. Overall, the law relies on financial incentives, investment in climate protection and technological progress. However, it omits additional measures that would be necessary to achieve climate targets.
Incentive Levies on Many CO2 Emissions
The current CO2 Act retains incentive levies. This places a burden on people and companies that emit a lot of CO2, while those that produce less CO2 benefit financially. Anyone who consumes CO2-intensive fuels, such as greenhouse operators and homeowners with a fossil fuel heating system, pays an incentive levy of CHF 120 per tonne of CO2 emitted (i.e. around 30 centimes per litre of heating oil). These so-called CO2 levies only apply to fuels used for heating (heating oil and natural gas). Motor fuels such as petrol and diesel are exempt for political reasons.
However, contrary to the original plans, the rate of the levy has not been adjusted, nor have additional fees on fuels, such as an originally planned airline ticket levy, been enshrined in law. As a result, the continued high consumption of fossil fuels is only being influenced through the existing mandatory compensation rate for fuel importers. A maximum of 5 centimes per litre is passed on to consumers. An increase and extension of the CO2 levy would have led to an even faster reduction of CO2 emissions in line with climate targets.
Use of the Levy
About a third of the money raised by the CO2 levy is earmarked for a national climate fund, which will continue to promote the replacement of heating systems, renewable energy and technologies that reduce greenhouse gases. The rest will be redistributed to the population via health insurance premiums.
In the future, all companies, regardless of sector, can be exempted from the CO2 levy if they commit to reducing their CO2 emissions. Until now, this exemption from the CO2 levy was only available to certain manufacturing companies with mid-range CO2 emissions (> 100 tonnes of CO2 per year).
These levies serve as a financial incentive to reduce CO2 emissions from fossil heating, light and electricity in order to achieve the goals of the Paris Agreement, which calls for halving emissions by 2030 and reaching net-zero emissions by 2050. This would also include meeting the targets of the Climate Protection Act (CIA). See the info box for more information on the CIA.
CO2 Act vs Climate Protection Act (CIA)
This FAQ deals with the basic climate policy instrument, the CO2 Act, newly revised in 2024. This law was drafted in a new, revised version by the National Council and the Council of States after the original bill was rejected in a referendum in June 2021. In June 2023, Swiss voters also approved the Climate Protection Act at the ballot box. This is the original Glacier Initiative that resulted in the Climate Protection and Innovation Act (CIA). The CIA is due to come into force on 1 January 2025, in line with the newly revised CO2 Act. Both laws are designed to ensure that Switzerland meets its international obligations under the Paris Climate Agreement.
Climate Protection and Innovation Act (CIA): The CIA enshrines Switzerland’s 2050 net-zero target in law for the first time and includes specific advisory and support services to drive Switzerland’s decarbonisation process. This should enable Switzerland to meet its net-zero commitments under the Paris Agreement.
CO₂ Act: The newly revised CO2 Act (follow-up act, 2025–2030) is the new version of the proposal that was rejected by Swiss voters in June 2021. It deals with all aspects of Switzerland’s greenhouse gas emissions and aims to halve them by 2030 in order to meet the first interim target of the Paris Agreement.
Sources:
Current CO₂ Act (transitional act, 2022–2024)
Final draft of the revised CO₂ Act (2025–2030) (in German)
Climate Protection Act (CIA) (in German)
CO2 Act
Climate and Innovation Act
You can find further exciting information on the subject of climate change and climate protection in our climate booklet
