CO2 levy for businesses

The CO2 levy creates an incentive to consume less energy and to use climate-friendly energy sources – and thus contributes to the decarbonisation of industry. A large proportion of the revenue is redistributed to the public and to businesses, irrespective of the amount of energy consumed.

The federal government levies a charge of CHF 120 for each tonne of CO₂ produced by the combustion of heating oil, natural gas or other fossil fuels. The CO₂ levy is an incentive tax. It makes fossil fuels more expensive and thus incentivises businesses to use them more sparingly. It also helps to make non-fossil energy sources such as biogas and wood more competitive.

Unlike the general public, certain businesses can apply to the Federal Office for Customs and Border Security (FOCBS) for reimbursement of the CO₂ levy paid.

Operators of installations with a reduction obligation

Operators of installations that perform economic activities or certain activities under public law can be exempted from the CO₂ levy. In return, they must commit to reducing their greenhouse gas emissions and decarbonising their operations.

Exemption from the CO2 levy: Reduction obligation

Operators of installations in the Emissions Trading System (ETS)

Activities that generally cause high to very high emissions are listed in the CO₂ Ordinance (Annex 6). Any company which carries out such an activity is required to participate in the ETS. It is also possible to participate voluntarily in the ETS (‘opt-in’). To do so, the installations operating at a given site must have a certain minimum total rated thermal input.

ETS for installation operators

Operators of fossil-fuelled combined heat and power plants

Operators of fossil-fuelled combined heat and power plants (CHP plants) can be exempted from the CO₂ levy on fossil fuels that they use to generate electricity. This applies to operators of CHP plants with a rated thermal input of between 0.5 and 20MW.

Exemption from the CO2 levy for fossil fuel combined heat and power plants

Non-energy use of fossil fuels

If it can be proven that fossil fuels have not been used to generate energy, a request may be made to have the CO₂ levy on these fuels reimbursed. Non-energy uses include technical applications such as cleaning, lubrication, admixtures in the pharmaceutical industry or for carburising steel.

Federal Office for Customs and Border Security: CO₂ levy publications