Companies that participate in the emissions trading scheme (ETS) are exempted from the CO2 levy. They must prepare a monitoring plan and on that basis report annually on their emissions. Each year, an ETS participant must surrender into the Emissions Trading Registry emission allowances or, if permitted, emission-reduction certificates, in the amount of its effective greenhouse gas emissions.
- 1. Participation in the ETS and withdrawal
- 2. Monitoring plan and annual monitoring report
- 3. Obligation to surrender emission allowances and emission reduction certificates
- 4. Auctioning of emission allowances
- 5. Refund of the CO2 levy
- 6. Changes in the company and adjustment of the free-of-charge allocation
- 7. Hardship provision
- 8. Failure to meet the obligation
1. Participation in the ETS and withdrawal
Companies that newly engage in an activity referred to in Annex 6 of the CO2 Ordinance must report this to the FOEN no later than three months after starting the activity.
Companies that want to voluntarily participate in the ETS must report this no later than six months after the conditions for participation have been fulfilled in accordance with Article 42 of the CO2 Ordinance.
Companies that fulfil the requirements for an exemption from the obligation to participate (Art. 41 CO2 Ordinance) or that permanently no longer fulfil the conditions for participation in the ETS (Art. 43a CO2 Ordinance) can apply by 1 June that they will no longer participate in the ETS from the beginning of the following year.
2. Monitoring plan and annual monitoring report
The monitoring plan shows where the emissions occur and how they can be monitored at what level of accuracy. It can be created once using the template below and subsequently kept up to date.
Based on the monitoring plan, the monitoring report must be submitted annually no later than 31 March of the following year. The ETS participant can submit its monitoring data and the additional goods accounting directly to the FOEN using the templates below. For inputting the monitoring data the Energieagentur der Wirtschaft (EnAW) also makes available software with a standardized format at cost-covering prices (Energie-Agentur der Wirtschaft (EnAW), Hegibachstrasse 47, Post box, 8032 Zurich, firstname.lastname@example.org, Telephone +41 44 421 34 45).
ETS participants are responsible for the timely input and accuracy of the data. The FOEN may require that the monitoring report be verified on behalf of, and at the expense of, the company. Independent third parties from the list below are eligible for verification. Other independent third parties may apply to the FOEN to be included in the list. To do so, they must fulfil at least the defined suitability criteria. The FOEN may require additional information.
3. Obligation to surrender emission allowances and emission reduction certificates
An ETS company is obliged to surrender to the FOEN in each case by 30 April emission allowances or, if permitted, emission-reduction certificates, in the amount of its previous year’s greenhouse gas emissions. For the latter, in addition to the limited quantity provided for in Article 48 CO2 Ordinance, the quality requirements of Article 4 CO2 Ordinance must be observed.
4. Auctioning of emission allowances
Emission allowances that have not been allocated free of charge are regularly auctioned off by the FOEN on the Swiss Emissions Trading Registry (EHR). Auctions can be carried out several times a year. Only ETS companies can participate in the auctions. Detailed information about the auction can be found in the fact sheet on auctions. The dates, auction volumes, maximum and minimum bid quantities of the next auction and the results of the auctions already carried out are published in the EHR.
5. Refund of the CO2 levy
The CO2 levy is paid when purchasing standard fossil fuels notwithstanding an exemption. An ETS company can claim a refund of the levy paid. The refund application must be submitted with the appropriate fuel bills to the Federal Customs Administration.
6. Changes in the company and adjustment of the free-of-charge allocation
Changes in emission-relevant installations and/or legal structures that affect the free-of-charge allocation of emission allowances or the monitoring of emissions are to be reported promptly to the FOEN.
7. Hardship provision
In the transition period until the envisaged linking with the EU-ETS, an ETS company may submit a request for assessment as a hardship case if the purchase of emission allowances to meet its obligations in the Swiss market substantially impairs its ability to compete. The FOEN approves such a request if the company can prove that it has used all the options available to it to meet its obligations.
8. Failure to meet the obligation
If an ETS company fails to surrender a sufficient quantity of emission allowances and emission-reduction certificates by the deadline, a sanction of CHF 125 per tonne CO2eq is due for the missing quantity under Article 21 of the CO2 Act. The ETS company must submit the missing emission allowances or emission-reduction certificates for surrender no later than 31 January of the following year. Otherwise the FOEN settles the missing quantity companies against the emission allowances subsequently allocated free of charge annually to the company.
Faktenblatt: Versteigerung von Emissionsrechten (PDF, 1 MB, 01.12.2014)(in German or in French)
Akkreditierten Verifizierer für Monitoringberichte EHS (PDF, 125 kB, 12.02.2019)available in German or French
Last modification 28.09.2018