Course set for new CO2 bill

On September 17, the Federal Council decided on the further course of action in climate policy. This was based on an analysis of the result of the vote on the revised CO2 law, according to which generally the concern about rising costs, in particular the possible increase in the price of gasoline, led to rejection, according to the media release. The Federal Council had also been informed by the Uvek about the discussions with various associations that the Federal Office had held in the aftermath of the June 13 vote.

The current CO2 Act requires the Federal Council to submit proposals to Parliament in good time on reduction targets for the period after 2020 and thus also additional measures. It has therefore instructed the Uvek to prepare a consultation draft by the end of the year that takes account of the outcome of the vote and is suitable for creating as broad a basis as possible for future climate policy. According to the federal government, the focus should be on measures that enable the population to reduce CO2 emissions in everyday life and that support the ongoing efforts of the various industries.

Future climate policy as a whole is to be based on a mix of instruments: The steering effect of the CO2 tax is to be supplemented with effective incentives and targeted support.

Key figures of the revision

For further work, the Federal Council has adopted a set of benchmarks.

• The bill is to build on the current CO2 Act. Existing instruments will be continued.
• The bill is intended to do without new levies. In the event that additional funds are required in the buildings sector, DETEC is considering temporarily adjusting the earmarking of the CO2 levy.
• Funds from various climate policy instruments should generally benefit those sectors from which the funds originate.
• In order to avoid bad investments and to strengthen ongoing developments, the bill aims to create various financial incentives. Anyone who wants to buy a hydrogen truck today, for example, needs to know how long alternative drives will remain exempt from the HVF. The new bill aims to create legal certainty for the industry with a time-limited exemption at the legislative level.
• Additional support measures are intended to support the ongoing efforts of the population and the respective industries.
  1. in the building sector, the replacement of old oil and gas heating systems is to receive additional financial support.
  2. in the mobility sector, the expansion of the infrastructure for electric cars is to be promoted. These will be supplemented
  efforts by adjusting the CO2 target values for vehicle imports.
  3. in public transport, the tax privilege for diesel buses is to be gradually abolished. The resulting
  Additional revenue is to be earmarked for the purchase of electric buses for local and regional transport.
  be
• Newly, additional companies are to be able to exempt themselves from the CO2 tax if, in return, they enter into a commitment to reduce their emissions. Today, the possibility of exemption is limited to individual sectors.
• In the aviation sector, a blending quota for sustainable fuels is to be introduced in line with developments in the EU. In addition, it will be examined whether the introduction of a minimum proportion of sustainable fuels should be accompanied by financial support or financial incentives for airlines.

The various measures, in conjunction with technological progress and momentum in various sectors, make it possible to stick to the reduction target of 50 percent by 2030. The exact relationship between domestic and foreign offsets remains to be determined. With the conclusion of various bilateral agreements, Switzerland has created the conditions for compensation projects abroad.

The efforts in the climate sector are accompanied by targeted measures in the energy sector. At its meeting on June 18, 2021, the Federal Council adopted the dispatch on the Federal Act on a Secure Electricity Supply with Renewable Energies. With this bill, the Federal Council aims to strengthen the expansion of domestic renewable energies and Switzerland's security of supply.

Source: Confederation

Exemption from CO2 tax still possible

The Federal Council supports the continuation of the instruments of the existing CO2 Act, which are limited until 2021, until the end of 2024, as it stated on September 17, 2021 in its statement on the report of the Urek-N on the parliamentary initiative 21.477 "Extension of the reduction target in the current CO2 Act". With the proposed amendment to the CO2 Act, Switzerland's climate target is to be extended until 2024. Swiss companies should also be able to continue to be exempted from the CO2 tax. The obligation of fuel importers to offset emissions from transport with climate protection projects at home and now also abroad would also be extended. (cf. here)