Topic Emissions trading
Emissions trading makes it possible to reduce emissions where it costs the least to do so. As a result, emission reduction targets can be achieved cost-efficiently. Emission allowances, emission reduction certificates and attestations are mainly traded by companies and specialised dealers.
How does emissions trading work?
Emissions trading is an economic instrument that makes it possible to reduce CO2 emissions where it costs the least to do so. Effective environment measures are applied according to economic criteria.
Swiss emissions trading scheme
Large, energy-intensive companies are required to participate in emissions trading, while medium-sized companies may voluntarily participate in the emissions trading scheme (ETS).
The Swiss Emissions Trading Registry
Emission allowances, emission reduction certificates and attestations from Switzerland and companies that participate in emissions trading can be recorded in the Swiss Emissions Trading Registry. The FOEN uses the registry to check whether companies meet their commitments, while the authorities use it to ensure that federal reduction targets are met.
CO2 compensation projects in Switzerland
Reductions in greenhouse gas emissions achieved in emissions-reduction projects (compensation projects) in Switzerland can receive attestation and be used to compensate for emissions. These attestations are not recognised internationally and are therefore not interchangeable with Kyoto certificates.
The inclusion of aviation in emissions trading
Switzerland and the EU are negotiating the possibility of linking their emissions trading schemes (ETS). They are also negotiating measures to cap CO2 emissions caused by air traffic.
Linking the Swiss and EU emissions trading schemes
Linking the Swiss and EU CO2 emissions markets would be beneficial for both environmental policy and the economy. Negotiations on this matter are already in progress.
Emission reduction projects and certificates
The flexibility mechanisms of the Kyoto Protocol enable developed countries and companies to allocate emission reductions achieved abroad to their emission reduction targets. There are three types of project-based mechanisms: Clean Development Mechanisms (CDMs), Joint Implementation (JI) and New Market Based Mechanisms (NMMs). The certificates resulting from these mechanisms can be traded.