Federal Law on the Reduction of CO2 (CO2 Law)

The CO2 Law entered into force on 1 May 2000. The Law stipulates that by 2010, the emissions of CO2 must be reduced by 10% below the 1990 level. For motor fuels, the objective is a reduction of 8%, while for heating fuels, 15% is envisaged. Measures to reduce CO2 emissions include consumption-dependent heavy vehicle tax, the Energy Law and the SwissEnergy Programme. If Switzerland is not on course to meet its Kyoto targets via the voluntary measures within the SwissEnergy Programme, then a CO2 tax may be instituted in 2004 at the earliest. The maximum rate of tax on CO2 is set at 210 CHF per tonne CO2. The effective rate will be set by, but has not yet been decided upon by Parliament. The revenue from the tax is to be refunded in full to the public and industry. To avoid incurring a disadvantage over their foreign competitors, companies may be exempt from the CO2 tax if they undertake voluntary measures to reasonably reduce their CO2 emissions (within the SwissEnergy Programmes).

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