Swiss Federal Council Approves Landmark Climate Bill, Facing Opposition Concerns

Bern, Switzerland – The Swiss Federal Council today approved a controversial climate bill aimed at reducing greenhouse gas emissions by 50% by 2030, compared to 1990 levels. The legislation, officially titled the “Climate and Innovation Act,” passed with a 123-53 vote in the National Council and 24-16 in the Council of States after months of debate and revisions. The bill allocates approximately CHF 2 billion (approximately $2.25 billion USD) in funding for climate protection measures over the next decade.

The core of the bill focuses on incentivizing the replacement of oil and gas heating systems with renewable alternatives like heat pumps. It introduces a ban on new oil heating systems starting in 2024, and gas heating systems in 2028, although cantons will have some adaptability in implementation. The legislation also includes provisions for promoting carbon capture technologies and supporting research into innovative climate solutions. A key component is the creation of a “Climate Fund” financed through a levy on fossil fuels.

The approval comes despite notable opposition from conservative and business groups who argue the bill is to costly and will harm the Swiss economy. The Swiss People’s Party (SVP) led the charge against the legislation, claiming it will disproportionately impact rural areas and lower-income households. Economiesuisse, the leading business federation, expressed concerns about the potential for increased energy prices and reduced competitiveness.Specifically, they cited potential impacts on the cantons of Ticino and Valais, which are heavily reliant on oil heating.

environmental organizations, while welcoming the bill’s passage, have criticized it as insufficient to meet the goals of the Paris Agreement. Greenpeace switzerland stated that the 50% reduction target is not ambitious enough and called for a faster transition to renewable energy sources. They also highlighted the need for stricter regulations on aviation and industrial emissions.MyClimate, a Swiss non-profit focused on carbon offsetting, emphasized the importance of complementary measures to achieve net-zero emissions by 2050.

Context: Switzerland’s Climate Goals and Challenges

Switzerland has committed to reducing its greenhouse gas emissions under the Paris Agreement. However, the country faces unique challenges due to its mountainous terrain and reliance on hydropower, which is vulnerable to climate change impacts like glacial melt and altered precipitation patterns. The country’s emissions profile is heavily weighted towards transportation (around 35%) and buildings (around 25%).

Previous climate policies,such as the CO2 Act,have had limited success in reducing emissions. The new Climate and Innovation act represents a significant shift towards a more comprehensive and incentive-based approach. The bill’s success will depend on effective implementation by the cantons and the availability of affordable renewable energy technologies. The Federal Office for the Surroundings (FOEN) will be responsible for monitoring the bill’s impact and reporting on progress towards the 2030 target. The next