Novelties in Energy Law 2021

The current Federal Act on the Reduction of CO2 Emissions (CO2 Act) and the associated CO2 Ordinance specify the reduction targets for greenhouse gas emissions and the instruments to achieve these targets by the end of 2020.

As sessions in Parliament on the total revision of the CO2 Act were delayed and the entry into force of the revised act is to take place on January 1, 2022 at the earliest, parliament decided on a partial revision of the (current) CO2 Ordinance in order to prevent any regulatory gaps. The partial revision will enter into force on January 1, 2021 and provides in particular for the following measures:

• Reduction target (for greenhouse emissions) of 1.5 percent for 2021 compared to 1990;
• Extension of the CO2 compensation obligation for importers of fossil fuels until the end of 2021;
• Extension of CO2 tax exemption for companies with reduction obligations until the end of 2021;
• Indefinite extension of the emissions trading system (ETS), cf. the agreement between Switzerland and the EU on linking the emission trading systems;
• Possibility to increase the CO2 tax on fossil fuels from today's CHF 96 per ton CO2 up to CHF 120 per ton CO2 by January 1, 2022;
• Extension of tax relief for biogenic fuels until the end of 2023 (Mineral Oil Tax Act).
   

The total revision of the CO2 Act was approved by Parliament on September 25, 2020, after almost three years of discussions (read more). The referendum period ends on January 14, 2021, and the totally revised CO2 Act is expected to enter into force on January 1, 2022.