Operators of fossil fuel combined heat and power (CHP) plants may be exempted from the CO2 levy on fossil thermal fuels used to generate electricity.
The possible exemption from the CO2 levy applies to operators of plants with a rated thermal input of 0.5 to 20MW. Plants operating above the upper limit are required to participate in the Emissions Trading System (ETS).
A plant corresponds to a site. As a rule, it is a heating plant consisting of one or more CHP units. The minimum rated thermal input of 0.5MW thus applies to a site with several units.
The CO2 levy is refunded on the share of fossil fuels used for electricity production, since in the winter months, CHP plants partially compensate for the lower production of electricity from solar and hydroelectric power, and thus strengthen the security of power supply. The CO2 levy is payable on fossil fuels used for heat production.
Plant operators must invest 40% of the refunded amount in effective measures to increase energy efficiency. There are no further conditions to meet for the remaining 60% of the refund.
CO2 levy refund
Operators of CHP plants can apply to have the amount of CO2 levy paid reimbursed. This is a two-stage process:
By 30 June, CHP plant operators obtain a confirmation of the amount of fuel eligible for reimbursement and the amount of the refund from the FOEN (emissions-trading@bafu.admin.ch).
Application for refund of CO2 levy to CHP plant operators 2024 (XLSX, 139 kB, 01.04.2025)available in German, French or Italian
The operator of the CHP plant must submit the application for the partial reimbursement to the Federal Office for Customs and Border Security (FOCBS) within six months of the date of issue of the FOEN confirmation. Reimbursement is made on the basis of this confirmation, which must be submitted to the FOCBS on request along with the fuel bills.
Measures to increase energy efficiency
The measures to increase energy efficiency must be carried out in the plants themselves or in subsidiary plants that acquire electricity or heat directly from the CHP plant. Double counting is not permitted; the benefit of the measures may not be claimed by third parties, such as, for example, operators of compensation projects, cantons or communes. To prevent double counting, the measures may also not be financed in plants with reduction commitments or plants participating in the ETS. The investments must ultimately increase energy efficiency; for instance, replacement equipment purchases may not be counted towards the fulfilment of the investment requirement.
Non-fulfilment of the reduction obligation and the investment requirement
If a CHP plant operator does not fulfil its investment requirement on time, the FOEN will order the repayment of 40% of the refunded CO2 levy on fossil fuels used for electricity production.
Further information
Documents
Factsheet on levy exemption for CHP plants 2024 (PDF, 114 kB, 01.04.2025)available in German, French and Italian
Last modification 16.04.2025
