The Swiss government presents its CO2 law - Target: 10% reduction in CO2 emissions by the year 2010
Bern, 17.03.1997 - The Swiss government (Federal Council) intends to reduce carbon dioxide (CO2) emissions by 10% by the year 2010 compared to the 1990 level. The federal law on the reduction of CO2 emissions presented by the Federal Council allows for the introduction of the CO2 incentive tax only if this target cannot be achleved by measures that have already been decided and by voluntary efforts. If needed, the tax would be introduced in 2004 at the earliest. The bill will now be submitted to Parliament.
Having ratified the International Convention on Climate Change in 1993, together with over 150 other countries, Switzerland is now committed to an international strategy designed to avert the threat of global warning. The efforts focus on the stabilization, followed by a reduction, in carbon dioxide (CO2) emissions and other gases contributing to the greenhouse effect. The federal law on the reduction of CO2 emissions is a demonstration of Switzerland’s commitment towards global climate protection. Efforts to reduce CO2 emissions are also being discussed at the international level. By December 1997 the Parties to the Convention on Climate Change must have specified, in a Protocol, the target limits designed to reduce levels of greenhouse gases.
The bill, which has been passed by the Federal Council and is about to be submitted to Parliament, has received widespread approval during the consultation process. The CO2 law envisages the following measures.
Reduction targets for CO2 emissions:
The CO2 law envisages a reduction in CO2 emissions of 10% by the year 2010 compared to the 1990 level. Separate targets will be specified for heating oils and motor fuels, i.e. minus 15 percent and minus 5 percent for heating oils and motor fuels respectively. These targets merely represent a first step, as scientific findings clearly indicate that further reduction steps will be required, both at national and international levels, beyond 2010.
Measures decided or planned by Switzerland for reducing CO2 emissions:
Measures already decided or planned by Switzerland aimed at reducing CO2 emissions will be taken into account in the efforts to achieve these targets. These include the increase in the tax on motor fuels for the financing of public transport projects (in particular the Transalpine Rail Route Project), the distance and weight-dependent charge on heavy goods vehicles, the energy law and the "Energy 2000" programme.
Voluntary measures:
Voluntary measures will also be taken into account and are accorded high priority in the CO2 law. The business community and members of the public are being asked to contribute voluntarily to the achievement of the targets.
Subsidiary CO2 tax:
The development of CO2 emissions is regularly assessed. The tax will be introduced, though not before 2004, only if it appears that the measures already decided or planned and the voluntary efforts are unlikely to achieve the set targets. In order to be able to determine what would be the maximum charge represented by the CO2 tax, the maximum tax rate will be stipulated in the law. Depending on the target shortfall the law allows for different rates to be set for heating oils and motor fuels.
Exemption from the CO2 tax subject to formal commitment:
Companies will be exempt from the CO2 tax if they undertake to restrict their emissions. Exemption from the tax will help avoid any negative consequences for the competitiveness of Swiss companies in the international arena.
The results of the consultation procedure:
170 consultation participants, including all the cantons and the main political parties and umbrella organizations, have expressed their views on the CO2 law. A very large majority of those consulted support the strategy being pursued by the Federal Council as regards climate policy and approve of the CO2 law in principle. In particular, they welcome the proposals to set target reduction limits, to take account of voluntary efforts and other measures, to redistribute all the revenues accruing from any CO2 tax and to avoid adverse effects on competitiveness in the international arena.
The social democratic Party, the Greens, the trade unions and environmental organizations are demanding more stringent reductions (15-20%), particularly as regards emissions originating from motor fuels. Two of the conservative parties (FDP, SVP) are demanding that the decision to introduce the tax be left to Parliament. One section of the business community agrees with this view, and certain representatives from this community also demand that the introduction of the CO2 tax be linked to comparable efforts being made abroad and that the law should stipulate individual targets for the various sectors of the economy (industry, services, transport and the domestic sector) in addition to the global reduction targets. The road transport associations, on the other hand, reject the CO2 tax, even in its subsidiary form, and are demanding an energy tax for the financing of public transport projects.
Publisher
Federal Department of the Environment, Transport, Energy and Communications
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