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Explanatory video: Climate protection in Switzerland
Source: SRF
Under the Paris Agreement, Switzerland has committed to reducing its greenhouse gas emissions to half of 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 the Council of States passed a transitional law. This extended the existing CO2 Act and the instruments relevant to climate protection until the end of 2024. At the same time, the Federal Council and Parliament were tasked with revising the CO2 Act in such a way that Switzerland could still achieve its climate protection targets by 2030 despite the defeat at the ballot box, whilst taking into account aspects criticised by the electorate.
On 15 March 2024, the National Council and the Council of States agreed on a new text for the Act, which came into force on 1 January 2025 as scheduled. Compared with the original draft, however, this newly revised CO2 Act has been significantly watered down. Carbon reductions will not be achieved through bans, as originally envisaged, but through financial incentives, investment in climate protection and technological progress.
The CO2 Act, as revised in 2025, is intended to safeguard the continued existence of the existing instruments for reducing Switzerland’s CO2 emissions. Incentive levies on CO2 emissions will remain at the same level (CO2 levy). Part of the revenue from these levies will go into a national climate fund, whilst another part will be redistributed to the population via health insurance premiums. Overall, the Act relies on financial incentives, investment in climate protection and technological progress to achieve the climate targets. However, additional measures that would be necessary to achieve the climate targets have been omitted.
The incentive levies under the current CO2 Act will be retained. This means that individuals and businesses that emit large amounts of CO₂ will be penalised, whilst those that produce less CO₂ will benefit financially. Anyone who uses CO₂-intensive fuels – such as greenhouse operators or property owners with fossil fuel heating systems – pays an incentive levy of 120 Swiss francs per tonne of CO₂ emitted (i.e. approximately 30 rappen per litre of heating oil). These so-called CO₂ levies apply only to fuels (heating oil and natural gas). Motor fuels such as petrol and diesel are exempt from the levies for political reasons.
However, contrary to the original plans, the level of the levies has not been adapted, nor have additional charges on fuels been enshrined in law. The continuing high consumption of fossil fuels is therefore governed solely by the existing mandatory offset rate for fuel importers. Of this, a maximum of 5 rappen per litre is passed on to consumers. An increase and extension of the CO₂ levy should have led to CO₂ emissions being reduced even more rapidly in line with climate targets.
Around a third of the revenue from CO₂ levies will be channelled into a national climate fund, which will continue to support the replacement of heating systems, renewable energy and technologies to reduce greenhouse gas emissions. The remainder will be redistributed to the public via health insurance premiums.
In future, companies across all sectors will be able to apply for exemption from the CO₂ levy if they commit to reducing their CO₂ emissions. Until now, this CO₂ levy exemption was restricted to specific manufacturing plants with medium-sized CO₂ emissions (>100 tonnes of CO₂ per year).
These levies thus serve as a financial incentive to reduce CO2 emissions from fossil-fuel-based heating, lighting and electricity, with the aim of halving emissions by 2030 and achieving net-zero by 2050. In this way, the CO2 Act also contributes to achieving the targets set out in the Climate Protection and Innovation Act (KIG).
This ‘FAQ’ examines in detail the fundamental climate policy instrument, the CO2 Act, which was revised in 2025. A new, revised version of this Act was drawn up by the National Council and the Council of States after the original bill was rejected in the June 2021 referendum. In June 2023, Swiss voters also approved the Act on Climate Protection at the ballot box. This is the original ‘Glacier Initiative’, which led to the Act on Climate Protection and Innovation (KIG). Like the revised CO2 Act, the KIG came into force on 1 January 2025. Both Acts are intended to ensure that Switzerland meets its international obligations under the Paris Agreement on Climate Change.
The KIG enshrines Switzerland’s net-zero target by 2050 in law for the first time and includes specific advisory and support schemes designed to drive forward Switzerland’s decarbonisation. This is intended to enable Switzerland to fulfil its net-zero commitment under the Paris Climate Agreement.
The newly revised CO2 Act (Follow-up Act 2025–2030) is a revised version of the bill that was rejected by Swiss voters in June 2021. It addresses all aspects of Switzerland’s greenhouse gas emissions and aims to halve them by 2030, thereby achieving the first interim target of the Paris Agreement.
As a Swiss company, you should systematically track your emissions and take targeted steps to reduce them. In practical terms, this means:
myclimate supports you throughout the entire process.
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