Exemption from the CO2 levy subject to a reduction obligation: step by step

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 by entering into what is known as a reduction obligation. Installation operators must submit an application to the FOEN for this reduction obligation.

The following step-by-step guide describes the key points for installation operators interested in a reduction obligation:

1. What does a reduction obligation involve?

A reduction obligation is a climate policy instrument that allows operators of installations to get a reimbursement of the CO₂ levy on thermal fossil fuels (exemption from the CO₂ levy). A reduction obligation lasts until 2040, is agreed with the FOEN and has four components:

Application
Valid target agreement to increase energy efficiency and reduce carbon emissions
Annual monitoring report
Decarbonisation plan

2. Can I get an exemption for my installations?

Installation operators can get an exemption from the CO₂ levy if their greenhouse gas emissions are generated mainly by an economic activity or an activity under public law specified in the CO₂ Ordinance. In return, they must commit to reducing their greenhouse gas emissions and decarbonising their operations in the medium term.

3. What geographical perimeter is permitted?

The geographical perimeter encompasses one or more fixed installations that are operated at the same self-contained production site. Several installation operators can form a pool and take on a joint reduction obligation. As a rule, a pool may comprise up to 50 sites.

If several companies form a pool for a reduction obligation, their individual target agreements are combined to form a superordinante target agreement covering all sites in the reduction obligation.

Information zum Perimeter (PDF, 1 MB, 23.04.2025)(available in German, French or Italian)

4. Under which model can my installation be exempted?

Greenhouse gas efficiency target: Installation operators whose greenhouse gas emissions exceed 200 tonnes of CO₂ annually can commit to reducing their emissions by increasing efficiency. A greenhouse gas efficiency target is based on a valid target agreement. Operators commit to increasing efficiency according to this target, or by an annual average of at least 2.25% of the original value in the target agreement.

Measures target for small installations: Installation operators whose greenhouse gas emissions do not exceed an annual limit of 1,500 tonnes of CO₂ can enter into a reduction obligation under a simplified model involving a measures target. This target is based on a valid target agreement.

Operators commit to increasing the overall impact of the reduction measures set in their target agreement, which must be an annual average of at least 2.25% of the original value in the target agreement.

5. How do I submit an application for a reduction obligation?

An installation operator that seeks to be exempted from the CO₂ levy must apply to the FOEN for a reduction obligation via the CORE information and documentation system before the deadline expires. For a reduction obligation starting in 2025 or 2026, the deadline is 1 September 2025.

The application can be submitted here: www.core.admin.ch

The following must be submitted with the application:

administrative data and details of the geographic perimeter;
number of the OASI compensation office and OASI numbers for exclusion from redistribution of CO₂ levy;
emissions data;
choice of model;
target agreement (deadline extensions are possible).

The target agreement must be drawn up by a certified energy consultant in accordance with Swiss Federal Office of Energy guidelines. The Confederation has transferred this cost-based service for ensuring enforcement to the following organisations:

act Cleantech Agentur Schweiz

Energie-Agentur der Wirtschaft (EnAW)

More information can be found on the joint FOEN and SFOE website:

Federal Office for the Environment & Federal Office of Energy: Energy efficiency target agreement

(available in German, French and Italian)

6. What does a decarbonisation plan involve?

Installation operators with a reduction obligation must submit a decarbonisation plan to the Confederation up to at least 2040. This sets out the maximum possible reductions in direct greenhouse gas emissions from fossil fuels. Operators can voluntarily set out a plan to reduce other emissions and set interim or final targets for after 2040.

The decarbonisation plan must be submitted within three years of the start of the reduction obligation and must be checked by a certified energy advisor for a fee. Approved advisors must be:

registered by the Swiss Federal Office of Energy (SFOE) in accordance with the Climate Protection Ordinance;
members of Cleantech Agentur Schweiz act or of Energie-Agentur der Wirtschaft EnAW.

The decarbonisation plan must be updated every three years.

act Cleantech Agentur Schweiz

Energie-Agentur der Wirtschaft (EnAW)

7. How is the decision made by the FOEN?

The FOEN examines the application for a reduction obligation and issues a decision on exemption from the CO₂ levy and the greenhouse gas efficiency target – or the measures target in the case of operators with small installations.

If the initial version of the decarbonisation plan is not submitted by 31 December in the third year of the reduction obligation, the reduction obligation is cancelled.

More detailed information on the reduction obligation (exemption from the CO₂ levy) can be found in the notification by the FOEN, the enforcement authority.

Communications of the FOEN in its capacity as the enforcement authority of the CO2 Ordinance - Overview over all modules.

Operators of installations with a total thermal rated input of over 20MW or which are involved in another activity as listed in Annex 6 of the CO₂ Ordinance are required to take part in the Emissions Trading System (ETS).

ETS for installation operators