Carbon offsetting

Companies that place fossil fuels onto the Swiss market are required to offset carbon emissions. They fund offsetting projects in Switzerland and abroad that reduce greenhouse gases. There is also a voluntary market for carbon certificates that is not regulated by the federal government.

Carbon offsetting is an investment in climate protection projects. Companies can purchase carbon emission certificates representing emission reductions made in projects elsewhere. These certificates are issued from independently assessed climate protection projects that reduce carbon emissions or store carbon.

Switzerland counts the reductions it achieves in offsetting projects in Switzerland and abroad towards its greenhouse gas balance and its climate protection targets.

The idea of offsetting is to compensate for greenhouse gases that have already been emitted. However, it is better for the climate to reduce or avoid emissions at their source.

How does compulsory carbon offsetting work in Switzerland?

Distributors of fossil fuels (petrol, diesel, natural gas and kerosene) must reduce part of their greenhouse gas emissions by financing offsetting projects in Switzerland and abroad. In each case the process is the same.

Organisations wishing to implement a climate protection project in Switzerland can have it approved by the Compensation Office. The Federal Office for the Environment FOEN and the Swiss Federal Office of Energy SFOE jointly manage the Compensation Office, which enforces the offsetting obligation in Switzerland and issues attestations. Projects abroad must also be authorised by the partner country.

Attestations

Attestations are carbon certificates issued by the Compensation Office for projects in Switzerland. Projects abroad receive international attestations (Internationally Transferred Mitigation Outcomes ITMO). One attestation or ITMO corresponds to one tonne of CO₂. ITMO can also be used for voluntary offsetting.

Additional, demonstrable, sustainable and not overestimated

Projects must meet certain legal requirements. For example, additionality must be guaranteed; this means that, without the attestations, the projects would not have been realised. Moreover, carbon reductions must be demonstrable, measurable and not overestimated. Reductions may not be claimed by another party (no double counting). Additional requirements apply to offsetting projects abroad: for example, projects abroad must promote sustainable development in the partner country.

Growing share of negative emission technologies

Projects funded by attestations in Switzerland and abroad are geared in the longer term less towards reducing carbon emissions and more towards carbon storage (negative emissions). The use of negative emission technologies is to be reserved for emissions that are difficult to avoid, particularly in agriculture and industry. Negative emissions are necessary for Switzerland to achieve its net-zero target. This will mean having storage facilities abroad, as the country does not currently have sufficient storage options itself.

Offsetting projects are carried out in Switzerland in accordance with the relevant provisions in the CO₂ Act and the CO₂ Ordinance. Projects abroad must also meet the requirements of bilateral agreements and Article 6.2 of the Paris Agreement.

Voluntary offsetting is not regulated

Besides compulsory offsetting, an unregulated voluntary offsetting market also exists. The FOEN nor has the competence nor the rights to regulate the voluntary offsetting market. This market plays a role internationally in funding climate protection projects; it allows both private individuals and companies that are not subject to any state requirements the opportunity to fund climate protection projects through voluntary carbon offsetting.

Information on carbon offsetting for applicants, validators and verifiers and partner countries

www.carbonoffset.admin.ch

Carbon offsetting: Offsetting obligation for placing fuels on the market

In Switzerland, one third of carbon emissions comes from the use of fossil fuels in the transport sector. Distributors of fossil fuels must comply with the CO2 Act, which requires them to fund projects to offset part of the emissions generated when these fuels are burnt. The proportion of emissions they are required to offset will increase to 50% by 2030. The amount of offsetting permitted abroad will also rise. Distributors must acquire attestations from offsetting projects to prove that they are meeting their offsetting obligation. These attestations are approved by the Compensation Office.

Carbon offsetting: Offsetting in Switzerland

Carbon offsetting in Switzerland is achieved in projects and programmes that reduce carbon emissions or store carbon. For example, oil for heating is replaced by wood, or methane emissions are reduced by the use of biogas plants. The emission reductions are monitored by the federal government, which issues national emission attestations.

Carbon offsetting: Offsetting abroad

Carbon offsetting projects abroad take account of the local conditions in the partner country. The technology used in the projects is thus usually different from that in projects in Switzerland. For example, they might involve improving the efficiency of cookstoves or replacing fossil-fuelled vehicles with electric vehicles. Emission reductions are only registered by Switzerland once the partner country has implemented the projects.

Compensation Office

The FOEN and SFOE jointly run the Compensation Office, the contact point for applicants, validators and verifiers, and entities subject to the offsetting obligation.

Contact:

In Switzerland: kop-ch@bafu.admin.ch
Abroad: carbonoffset@bafu.admin.ch

«Offsetting CO2 emissions» newsletter

Obligation to compensate for fossil fuel importers: a central measure of Swiss climate policy

Schweizerische Zeitschrift für Forstwesen - Reto Burkard - January 2019 (in German)

Klimakompensation im Ausland: Die Pionierrolle der Schweiz

Die Volkswirtschaft - Reto Burkard, Edi Medilanski | 24.07.2020 (in German and French)

Offsetting CO2 emissions: projects and programmes (PDF, 906 kB, 01.05.2025)A communication of the FOEN in its capacity as enforcement authority of the CO2 Ordinance. 10th updated version, 2025

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