Switzerland closes CO2 law revision gap

Switzerland's federal government this week passed a revised CO2 ordinance, aimed at bridging the gap until the country's CO2 law can be fully revised.

The amended CO2 ordinance extends several "key" climate protection instruments, the legal basis of which would otherwise expire at the end of the year, the federal environment office said on behalf of the government. The new ordinance also puts into law the 1.5pc greenhouse gas (GHG) reduction target for 2021 against 1990 levels.

Parliament has postponed its reading of the CO2 law amendment bill until after 2021. The bill may also face a public referendum.

The amended CO2 ordinance will extend, for an unlimited period, the country's emissions trading system (ETS). Switzerland's ETS has been linked with the EU ETS since the start of this year.

The new CO2 ordinance extends the exemption from the CO2 levy enjoyed by energy-intensive companies, which in return are obliged to carry out certain reductions. It also extends the compensation obligation for importers of fossil transport fuels.

The revised ordinance offers the possibility to further raise the country's CO2 levy on 1 January 2022, if emissions reductions are deemed insufficient. Under Swiss law, the CO2 levy can be lifted to a maximum 120 Swiss francs /t CO2 ($132/t CO2), if GHG emissions from fossil fuels do not fall sufficiently. The CO2 levy has remained at SFr96/t CO2 since 2018 after standing at SFr84/t CO2e in 2016 and 2017.

The new ordinance also legally adapts the emissions standards for new cars to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP). This will not change the reduction obligations on Switzerland's vehicle importers, as the country already used WLTP-close standards in its target values for the years 2021-24.

By Chloe Jardine