Unternavigation

Emissions trading system (ETS)

Emissions trading is the trading of allowances to emit a certain quantity of greenhouse gases. In the Emissions Trading System (ETS), emissions are reduced where costs are comparatively low – according to market logic.

The ETS encourages businesses to reduce greenhouse gas emissions and follows the cap-and-trade principle:

The total number of emission allowances in the system is set by the Federal Council (i.e. a cap is set) and reduced by a certain number each year.
Market-based trading with these allowances ensures that emissions are reduced where it is most cost-effective.

Greenhouse gas intensive industrial plants

Industrial plants that produce large amounts of greenhouse gases must participate in the ETS. They must cover their annual emissions with emission allowances. They receive a certain number of emission allowances free of charge, based on production and efficiency benchmarks. Participants can purchase additional emission allowances and sell surplus ones.

Aviation

The aviation industry has also had to take part in the Swiss ETS since 2020 for all flights within Switzerland and from Switzerland to the European Economic Area and the United Kingdom. Aircraft operators must cover their carbon emissions from these flights with emission allowances.

Emissions Trading Registry

The Swiss Emissions Trading Registry records emission allowances, emission reduction certificates and attestations for companies that participate in emissions trading.

Link to EU ETS

Switzerland’s ETS and that of the EU have been linked since 1 January 2020. An agreement with the EU regulates the mutual recognition of emission allowances and the structure of the two ETSs. Linking the systems brings both climate-related and economic benefits.