Through the ratification of the United Nations Framework Convention on Climate Change in 1992 in Rio, Switzerland is committed to contribute to the stabilization of "greenhouse gas concentration in the atmosphere at a level that prevents dangerous anthropogenic interference with the climate system". This commitment was reinforced by signing (1998) and ratifying (2003) the Kyoto protocol, and was reflected in the introduction of the principle of sustainable development in the Federal Constitution in 1999 and the entry into force of the CO2 Law [1], on 1st May 2000.
The CO2 Law requires that, by 2010, CO2 emissions due to fossil fuels should be reduced by 10% compared to 1990. The emissions from fossil fuels for heating purposes must be reduced by 15% while the emissions from fossil fuels for transportation purposes (except kerosene used for international flights) must be reduced by 8% (see figure below). The target will be considered reached according to the average over the period 2008-2012. Again, the political orientation focuses on freely agreed measures.
The emissions according to the CO2 Law [2] are published by the Federal Office for the Environment (FOEN) annually in August for the previous year's data, after the Swiss global statistics on energy. The total amount of CO2 emissions according to the CO2 Law is calculated on the basis of fossil fuels sold in Switzerland for energy purposes. CO2 emissions relating to processes (i.e. non-energy purposes), refineries and international air traffic are deducted from the total amount. The fuels are corrected by a climate factor.
The figure below gives an overview of CO2 emissions and their breakdown into heating and transportation purposes over the period 1990-2009.
Figure : Balance of CO2 emissions according to the CO2 Law over the period 1990-2009 in Switzerland
According to the Prognos 2002 study [3], the voluntary efforts in the framework of SwissEnergy will not prevent a significant shortfall in achieving the targets for transportation fuel. On 20 October 2004, the Federal Council submitted four options to consultation, with the aim of reducing CO2 emissions and closing the gap with respect to the targets [4].
The solution adopted on 23 March 2005 by the Federal Council for reducing CO2 emissions is the application of a CO2 tax (at a rate of 3.0 cts/l for fuel oil and 2.5 cts/m3 for gas, starting on 1 January 2008) for heating fuels, and the "climate cent" for transportation fuels (starting on 1 January 2006).
The Climate Cent Foundation (CCF) is funded by a tax of 1.5 cts/litre on gasoline and diesel. The Climate Cent [5] offers a constant budget of 100 million Swiss Francs (MCHF) per year. The revenue shall be invested in measures beneficial to the environment. The share of purchases of emission certificates abroad is set at 30 MCHF/yr until 2035. The share of 70 MCHF/yr for national measures is used at 75% in buildings and 25% in the transportation sector. During the period 2008-2012, the Climate Cent should allow reducing CO2 emissions by a minimum of 1.8 Mt/yr, of which at least 0.2 Mt/yr through national projects. The purchase of foreign emission certificates was thereby limited to 1.6 Mt/yr.
On 29 June 2007, the CCF presented its final business plan together with a study on the effectiveness of the measures carried out. These documents were reviewed by the coordination group for the Climate Cent (including representatives of SFOE, FOEN, SECO and Cantons). The experts concluded that the CCF was operating efficiently and that it would be able to achieve the targets by 2012. Based on that assessment, the DETEC decided to forget about the first period of contract termination, initially set at the end of September 2007, and to maintain the Climate Cent [6].
The latest calculations by the FOEN show that an additional reduction of 0.5 Mt CO2 will be required so that Switzerland achieves the targets set by LCO2. The deviation from the target is particularly significant with regard to CO2 emissions from transportation fuels (target 2010: -8%, situation 2006: +9.1%).
On 20 February 2008, the Federal Council decided to launch a revision of the LCO2 for the climate policy after 2012. Switzerland fixes targets comparable to those of the EU, namely a decrease of at least 20% of greenhouse gas emissions by 2020. The consultation on the revision of the LCO2 should enable to discuss various instruments: an incentive climate tax, the funding of measures in Switzerland on the one hand and abroad on the other hand (certificates), technical regulations and the idea of a climate-neutral Switzerland. By 2012, the Federal Council intends to meet the reduction targets set in the LCO2 by using the climate cent, and also rejects the introduction of a CO2 tax applied to fuels [7].