Summary
Details
- Switzerland
Depending on activity, mandatory obligations can apply to:
ETS installations.
Fuel importers.
Vehicle importers.
Aircraft operators.
Fossil fuel users subject to the CO₂ levy.
Businesses entering formal reduction commitments.
Some mechanisms are optional, including:
Applying for specific climate support.
Entering certain reduction commitments to obtain levy exemptions.
Using qualifying decarbonization support instruments.
Deep dive
- What’s Required
- 1. CO₂ levy on fossil fuels
- 2. Reduction commitments for companies
- 3. Swiss Emissions Trading System
- 4. Transport fuel compensation
- 5. Vehicle CO₂ targets
- 6. Aviation
- 7. Industrial decarbonization support
- 8. Climate adaptation
- Important Deadlines
- Current Status
- Penalties for Non-Compliance
- Examples of Known Violations / Failure Modes
- Resources
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What’s Required
1. CO₂ levy on fossil fuels
Switzerland continues to impose its CO₂ levy on fossil heating and process fuels.
The current rate remains:
CHF 120 per tonne of CO₂.
Applicable businesses can therefore face direct carbon costs on fossil fuel use.
2. Reduction commitments for companies
Companies can enter binding emissions reduction commitments in exchange for exemption from the CO₂ levy under qualifying conditions.
The revised regime makes this option available more broadly to companies.
The Ordinance establishes an average minimum emissions-reduction requirement of 2.25% per year over the commitment period.
3. Swiss Emissions Trading System
Large emissions-intensive installations within the Swiss ETS remain subject to:
Emissions monitoring.
Annual reporting.
Verification.
Allowance surrender.
Applicable allocation rules.
Switzerland’s ETS remains linked with the EU ETS.
4. Transport fuel compensation
Importers of fossil motor fuels must compensate for part of the CO₂ emissions associated with transport fuels through approved climate projects.
For 2025–2030, the Ordinance requires at least 12% of compensation measures to be implemented domestically.
5. Vehicle CO₂ targets
From 2025, revised CO₂ targets apply to new vehicle fleets.
The framework covers:
Passenger cars.
Light commercial vehicles.
Heavy-duty vehicles.
Large importers can receive certain flexibility where their fleet shares of low- and zero-emission vehicles exceed specified thresholds.
6. Aviation
Aircraft operators remain within the Swiss emissions trading framework.
The quantity of allowances allocated to aviation is progressively reduced in line with the linked European system.
Switzerland also introduced requirements concerning renewable or low-emission aviation fuels from 2026.
7. Industrial decarbonization support
The revised framework introduces or expands financial support for companies investing in climate-friendly technologies.
Support can include technologies reducing industrial greenhouse gas emissions and certain renewable fuel or industrial heat applications.
8. Climate adaptation
The revised framework also allows federal support for adaptation measures implemented by:
Cantons.
Municipalities.
Companies.
Eligible themes can include heat risk, natural hazards and drought-related impacts.
Important Deadlines
March 2024: Parliament adopted the revised CO₂ Act for the 2025–2030 period.
January 1, 2025: Major revised provisions took effect, including ETS, vehicle standards, compensation and reduction commitments.
April 2, 2025: Federal Council adopted the revised CO₂ Ordinance.
May 1, 2025: New funding instruments entered into force.
2025–2030: Current implementation period.
2026: Planned implementation of renewable and low-emission aviation fuel blending requirements.
2030: Switzerland aims to reduce greenhouse gas emissions by 50% compared with 1990.
Current Status
Active and legally binding.
The revised CO₂ Ordinance is in force, with several provisions applied retroactively from January 1, 2025, to avoid interruption of existing climate-policy instruments.
Penalties for Non-Compliance
Different mechanisms have separate enforcement regimes.
Potential consequences include:
CO₂ levy liabilities.
ETS penalties.
Vehicle emissions penalties.
Compensation-related enforcement.
Recovery of improperly claimed exemptions or support.
Administrative fines.
Loss of eligibility for favorable treatment.
Examples of Known Violations / Failure Modes
Failing to surrender sufficient ETS allowances.
Inaccurate emissions reporting.
Failing to verify greenhouse gas data.
Missing an agreed reduction pathway.
Incorrectly claiming exemption from the CO₂ levy.
Failing fuel-importer compensation obligations.
Incorrect vehicle emissions reporting.
Miscalculating fleet-average CO₂ performance.
Failing to meet aviation ETS obligations.
Using unapproved projects to meet compensation requirements.
Failing to retain evidence supporting a climate commitment.
Treating voluntary climate targets as equivalent to statutory compliance.
Resources
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