In this newsletter, the Compensation Office informs you about important decisions, innovations and publications on the subject of offsetting Switzerland's carbon emissions.
Newsletter in italiano
A partire dal numero 16, la newsletter è pubblicata anche in italiano:
Newsletter in English
Starting with issue 19, the newsletter is also published in English:
1. Revised CO2 Ordinance: In force since 01.05.2025
An overview of the main changes is presented below. Further information can be found in section 3 of the explanatory report on Amendments to the CO2 Ordinance (available in German, French and Italian), page 15 onwards (use the search function in the document, search for amended article – see articles below). The explanatory reports are not available in English; however, the key points are given in English in the document provided below.
Added value locally – Art. 5.1.b.5
Verifiability and quantifiability – Art. 5.1.c.1
Suppressed demand – Art. 5.1.c.1
Transfer of emission allowances – Art. 5.1.g
Programmes focusing on one technology only – Art. 5a.1.b
Stakeholder consultation – Art. 6.2.n.3
Submission of documents by verifiers and validators – Arts 7.1 and 9.5
All emission reductions must be applied for – Art. 9.5
Overall Mitigation in Global Emissions (OMGE) – Art. 10.6bis
Duty to report substantial modifications – Art. 11.1
New lower limit for the offsetting obligation from 2025 – Art. 87
Offsetting rate up to 2030 –Arts 89.2 and 3 and Art. 91.2
Projects and programmes with biochar in Switzerland and abroad – Annexes 2a and 3
State of the art – Art. 5.1.b.2 and Annex 3
Requirements for renewable thermal and motor fuels in the HKN register – Annex 3
Electrification of process heat – Annex 3
Emission factor reduction path – Annex 3a
Permitted carbon storage – Art. 5.2 and Annex 19
Offsetting programmes abroad must contribute to sustainable development in the given country and benefit the local population.
Emission reductions must be verifiable and quantifiable, either based on direct measurements or using scientifically validated models whose parameters are checked for plausibility based on measurements taken during the monitoring process.
Suppressed demand is only permissible to a certain extent, as it is based on assumptions that are difficult to quantify.
The applicant must show they are entitled to emission reductions, for example that the emission allowances have been transferred by the project beneficiaries.
A programme may involve one technology only, unless several interdependent technologies are required to carry it out.
For projects abroad, a consultation must be conducted with all stakeholders, taking into account the requirements of the partner country.
The validation and verification bodies must now submit both the project application and the monitoring report. If applicants so wish, the validation and verification bodies can communicate directly with the Compensation Office, with the applicants bearing full responsibility.
All emission reductions generated by the project must be applied for. Application for only some of the emissions may be made solely in case of an apportionment of effect.
Switzerland ensures that 2 % of international attestations are withdrawn from circulation in accordance with the COP26 recommendation.
Substantial modifications must be reported to the Compensation Office in the next monitoring report. This was previously only defined in the enforcement notice and is now regulated by the new CO2 Ordinance.
From 2025, only fuel importers that are responsible for more than 10'000 tonnes of carbon emissions per year will be required to offset (previously 1000 tonnes per year).
The offsetting rate will increase to a total of 50 % by 2030, whereby at least 12 % of emissions must be offset in Switzerland from 2025. However, the rate will be reviewed in 2027.
Biochar can now be used in construction materials abroad under certain circumstances if the country involved has corresponding guidelines. The requirements on biochar use in Switzerland have also been revised.
Technologies may be considered state of the art if they are, at a minimum, technically feasible, field-tested and scientifically proven.
From 01.01.2025, the use of biofuels must be certified via the HKN (certificates of origin) register in order to provide proof of compliance with the ecological requirements in accordance with Art. 35d of the Environmental Protection Act (EPA) and to prevent double counting between instruments.
The electrification of process heat is permitted if it can be shown that renewable electricity is used.
In future, the flat-rate emission factor for new heat consumers will be a dynamic parameter that decreases over time in order to take account of the increasing share of renewable energies.
Biological and geological carbon storage is permitted in Switzerland, but only geological storage is permitted abroad.
2. Possibility of appeal in the case of projects abroad
Applicants receive a Letter of Authorisation (LoA) from the FOEN for projects abroad. Based on monitoring reports, they receive confirmation that the transfer requirements have been met. If the applicant does not agree with the FOEN decision, they may lodge an appeal with the Compensation Office. An address in Switzerland must be provided.
3. Project duration and the start of economic feasibility calculations
The project duration of an offsetting project is the period during which the project generates attestations. It starts with the start of implementation.
In the case of technical systems/construction measures, it generally corresponds to the standardised useful life. In the case of measures other than construction measures, it corresponds to the period during which the measure is effective.
The economic feasibility is calculated from the start of effectiveness over the whole useful life. If the project duration is extended, the economic feasibility must be recalculated and revalidated.
For example, the project duration of a district heating network is defined as follows: With a standardised useful life of 40 years and a start of operations on 01.01.2016, the project lasts from 01.01.2016 to 31.12.2055.
If the start of effectiveness was on 01.01.2020, the economic feasibility analysis must cover the period up to 31.12.2059.
4. New templates available
The templates for project descriptions, monitoring reports, validation and verification reports and the mitigation activity summary (MAS) are online.
The version 7 templates for project descriptions and version 5 templates for monitoring reports may be used from May 2025 onwards and must be used from 01.08.2025 onwards.
The latest version of the application templates can be found here:
Further information on the validity of the individual templates can be found in these tables:
Last modification 18.06.2025
