At the beginning of April 2025, the Federal Council put the revised CO2 Ordinance into force, partly with retroactive effect to 1 January 2025, which sets the reduction targets for greenhouse gas emissions in the various sectors up to 2030.   

The revised CO2 law aims to halve Switzerland’s greenhouse gas emissions by 2030 compared to 1990 levels. Two-thirds of the reduction will be achieved through domestic measures. The federal government can also now financially support measures by cantons, municipalities and companies for adjustment to the consequences of climate change. The CO2 ordinance regulates the priorities for funding. Priority is given to projects in connection with the health consequences of increasing heat stress, with personal and property damage caused by increasing natural hazards and with crop failures in agriculture due to more frequent and longer drought periods.

Measures in the industrial sector

The CO2 regulation regulates three new support instruments for industry: companies in the Swiss Emissions Trading System (ETS) can apply for financial support for measures that significantly reduce their greenhouse gas emissions. The regulation also regulates new support for producers of biomethane that can be fed into the gas grid or used as fuel. Companies that use solar heat for their process heat will also be supported. The regulation also specifies the exemption from the CO2 levy for companies that undertake to reduce their emissions. This option is now open to all companies. The CO2 regulation specifies a minimum average value of 2.25% per year over the entire commitment period.

Criticism: More expensive CO2 certificates must be purchased from abroad

But the Climate Alliance, an alliance of civil society organizations working on climate protection in Switzerland, criticizes the fact that the carbon-intensive industry, for example, benefits from the revised CO2 law: Currently, companies with very high CO2 emissions would have to reduce their emissions by 4.4% per year – just as in the EU. If they reach the quota, they would be exempted from the CO2 tax on heating oil and natural gas. The Federal Council’s draft now stipulates that this exemption would be possible from a reduction of only 2.5%. But even this was too much for Swissmem and Economiesuisse. Under pressure from Swissmem and Economiesuisse, the rate was reduced to 2.25% and was also limited to energy-related emissions. «This means that Switzerland will reduce its domestic emissions even more slowly than it already has. Accordingly, more expensive CO2 certificates have to be purchased from abroad at tax expense. And this is especially true for an economic sector in which measures to reduce CO2 are often even financially worthwhile», says Patrick Hofstetter, climate protection expert at WWF Switzerland.

Measures in transport

Under the revised CO2 Act, international night train connections and the switch from diesel to electric buses will be promoted. The CO2 Ordinance clarifies the subsidy conditions. Fuel importers are still obliged to offset part of the CO2 emissions from transport with climate protection projects at home and abroad. The CO2 Ordinance stipulates a domestic share of at least 12% for the years 2025-2030.

Criticism: CO2 offsetting obligation of fuel importers was set too low

The Climate Alliance criticizes that even in the draft before the consultation (in which stakeholders can express their views), the CO2 offsetting obligation of fuel importers was set far too low under pressure from the industry. «In doing so, the federal government is giving fuel importers a three-digit million sum at the cost of taxpayers. An amount that must be reduced elsewhere», says the Climate Alliance quotes Delia Berner, an expert on climate policy at alliance sud.

In the CO2 Act, specific CO2 target values for vehicles in grams per kilometer will apply from 2025. Following the example of the EU, the scope of application will be extended to include heavy commercial vehicles (e.g. lorries). The CO2 Regulation lays down requirements for the determination of the relevant CO2 emissions as well as for the calculation of the individual target for heavy commercial vehicles. Major importers of all vehicle categories will be facilitated in reaching the target values if they exceed specified threshold values for the fleet share of zero- and low-emission vehicles.

Criticism: Car salesmen don’t even have to make a special effort

In the transport sector, car manufacturers can rejoice, according to the Climate Alliance. «Anyone that reaches the 23% limit for electric and hybrid vehicles can continue to sell combustion engines to almost the same extent», she quotes Luc Leumann of the Swiss Transport Club (STC). This would be doing climate protection a disservice. Especially since car sellers would not even have to make a special effort to meet the threshold now introduced, because they would already be able to reach this share today.

Measures in aviation

Aviation will remain included in the ETS (Environment, Health and Safety) for aircraft operators. In line with the EU ETS, the amount of emission allowances allocated will be reduced each year from 2025. Switzerland will implement the obligation to mix renewable and low-emission aviation fuels according to current planning in 2026. In addition, measures to reduce greenhouse gas emissions from aviation (e.g. production of renewable aviation fuels) will be promoted. The CO2 Ordinance regulates the scope of application of the admixture obligation and the subsidy conditions.

Measures in the field of buildings

With the revised CO2 Act, the measures in the building sector will continue. The CO2 charge will remain at CHF 120 per tonne of CO2. The public and the economy will continue to receive two-thirds of the charge.

Partially retroactive entry into force

In order to ensure that the existing climate policy instruments continue to be fully implemented, some of the provisions will enter into force retroactively from 1 January 2025. This concerns, in particular, provisions on the CO2 target values for vehicles, the reduction obligation, the ETS, the compensation obligation and the refund and redistribution of the CO2 levy. The provisions on the new funding vessels will enter into force on 1 May 2025, together with the Regulation on the placing on the market of renewable or low-emission fuels. This defines the environmental requirements for renewable or low-emission fuels and the means of demonstrating compliance with these requirements.