Emissions market in Switzerland

Since 2008, Switzerland has been levying a CO2 steering tax on fossil fuels such as heating oil or natural gas. Fossil fuels are taxed in order to incentivize the economical and increased use of low carbon or carbon neutral energy sources. Each year, approximately two thirds of those tax revenues are distributed back to the population and the economy independent of their usage. One-third is used for promoting CO2-effective measures such as energy-based refurbishments or renewable energy. Further 25 million CHF are flowing into the swiss technology fund each year.

No CO2 tax is levied on fuel. Instead, Switzerland is trying to lower emissions through tougher CO2 provisions for passenger cars. In addition, major emitting sectors are obliged to implement CO2 compensation projects.

Also in 2008, the Swiss greenhouse gas emissions trading system (EHS) was launched, with participation being voluntary during the first five years. A revised version of the EHS became effective in 2013, according to which participation is compulsory for energy-intensive companies. In return, those companies are exempt from the CO2 steering tax. For medium-sized companies, participation remains voluntary. The emissions trading system EHS currently covers approximately 10% of Swiss greenhouse gas emissions.

Since January 1st 2020 the EHS is linked to the european emissions trading system (EU ETS). Thereby the greenhouse gas certificates of the EU and Switzerland are mutually recognized. With the linking of the two trading systems, the aviation sector in Switzerland is now obliged to participate in the ETS as well.


Faktor-Plus has been implementing greenhouse gas reduction projects in Switzerland in various sectors for many years, thereby generating greenhouse gas certificates and trading those for its customers.