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Existing Swiss CO2 Act
Approximately 10 years after their first attempt at a CO2 tax, the Swiss parliament adopted the CO2 Act in 1999. The Act should by 2010 (midway through the period 2008 to 2012) bring about a total reduction of 10 percent in CO2 emissions compared to 1990 (sector targets for fuel and propellants are minus 15 percent and minus 8 percent respectively). Thus it also contributes towards meeting the emission reduction commitment under the Kyoto Protocol (8 percent reduction of all greenhouse gases by 2010). This goal should be achieved primarily through voluntary measures, and if these fail, the federal government must impose a CO2 tax.
The voluntary measures have not achieved their goals in the fuel sector, which is why we have been charging a CO2 tax on fuel since 1 January 2008. High emission businesses can opt out of the CO2 tax by concluding a CO2 reduction contract with the EnAW (Energy Agency for the Economy). They would in turn receive tradable emission allowances. If the target was not reached in the previous year, parliament must increase the CO2 tax. For 2010 it was thus raised to 36 CHF per tonne of CO2.
The revenue of the tax is refunded to the population and the economy (via health insurance premiums and non-wage labour costs). This year, parliament has moreover decided to allocate one third of the monies, i.e. 200 million CHF, towards the promotion of thermotechnical measures (partial earmarking).
As it became clear in 2005 that the target had not been achieved in the fuel sector, the Federal Council decided to allow the model of the so-called "climate cent" - a voluntary, targeted price premium of 1.5 cents per litre of petrol and diesel, which works out to about CHF 5 per tonne of CO2. The revenue is put into carbon offset projects within Switzerland and abroad. The Climate Cent Foundation has made a commitment to the Federal government to reduce 12 million tonnes of CO2 in the period 2008 to 2012, of which at least 2 million tonnes domestically.
Further information
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