CO2 levy

The CO2 levy creates an incentive to consume less energy and to use climate-friendly energy sources. Since 2008, it has been raised as an incentive tax on fossil fuels such as heating oil and natural gas. Most of the revenue is redistributed to the public and businesses. This benefits those who consume less fossil fuel.

Go directly to the redistribution and exemption from the CO2 levy:

Redistribution to private individuals

Private individuals receive money back each year via their health insurance premium.

The revenue from the CO₂ levy paid by the general public is redistributed equally to all persons resident in Switzerland who are insured under the Federal Health Insurance Act (HIA). This means that every person receives the same amount, regardless of the amount of energy they consume.

This mechanism favours those who consume little fossil fuel.

CO2 levy: private individuals

Exemptions for businesses

Three categories of business are exempt from the CO₂ levy.

1. Operators of greenhouse-gas-intensive installations that participate in the Emissions Trading System (ETS):

Emissions trading system

2. Operators of facilities that do not participate in the ETS because of the amount of greenhouse gas emissions they emit, or because they carry out an economic activity or other activities under public law (such as the operation of swimming pools, hospitals or retirement and nursing homes) and have a reduction obligation with the federal government:

Exemption from the CO2 levy: Reduction obligation

3. Operators of fossil-fuel combined heat and power (CHP) plants:

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

Private individuals cannot be exempted from the CO₂ levy.

Federal Office for Customs and Border Security: CO2 levy

Redistribution to businesses

The revenue from the CO₂ levy paid by businesses is redistributed to employers in proportion to the OASI payroll of their employees.

Operators of facilities with a reduction obligation do not receive revenue from the levy.

Redistribution of the CO2 levy to companies

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 people to use them more sparingly. It also helps to make non-fossil energy sources such as biogas and wood more competitive.

Every year, two thirds of the revenue from the levy are redistributed to the public and businesses regardless of the amount of fossil fuel they use. One third of the revenue is used to reduce carbon emissions in buildings (Buildings Programme) as well as to fund renewable energy and promote innovative businesses (Technology Fund).

Levy collection

Both private individuals and businesses pay the CO₂ levy when they purchase fossil fuels such as heating oil, natural gas or coal. The amount is shown on the invoice. Depending on the carbon content of an energy source, more or less CO₂ is produced when it is burnt. The carbon content therefore determines the amount to be paid for each energy source.

The federal government does not raise the CO₂ levy on fossil fuels such as petrol, diesel or paraffin (it only applies to thermal fuels). However, manufacturers and importers of fossil fuels are required to partially offset the carbon emissions from transport.

Federal Office for Customs and Border Security: CO2 levy

CO2 levy: private individuals

The CO₂levy creates an incentive to consume less energy and to use climate-friendly energy sources. A large proportion of the revenue is redistributed to the public and to businesses, irrespective of the amount of energy consumed.

CO2 levy: 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.