Swiss companies and investors are navigating a rapidly changing legislative and regulatory landscape.
Environment/Climate Change
The Climate and Innovation Act: In June 2023, the Swiss people approved the Federal Act on Climate Protection Targets, Innovation and the Strengthening of Energy Security (the “Climate & Innovation Act”). The Climate & Innovation Act anchors a legally binding goal for Switzerland to achieve net-zero emissions by 2050 by gradually reducing the importation of fossil fuels and
promoting domestically produced renewable energy. The act further prescribes that all companies are required to reduce their emissions to “net zero” by 2050 at the latest.
The Climate & Innovation Act uses a “carrot-but-no-stick approach”. It does not institute taxes or compulsory action; financial support will instead be allocated over 10 years to support of CHF200 million per year will be made available over 10 years for companies to adopt innovative technologies, such as carbon capture. The Swiss financial sector is also expected to contribute to the energy transition. In this respect, the Climate & Innovation Act contemplates at the Swiss government may enter into industry-specific agreements with the financial sector in an effort to make finance flows consistent with climate objectives.
