Decarbonising industry
The federal government supports industrial decarbonisation and development of innovative technologies and processes through two funding instruments. In Switzerland, the industrial sector is responsible for around a quarter of all greenhouse gas emissions. As such, reducing industrial emissions could therefore play a significant role in ensuring Switzerland reaches its net-zero target by 2050.
Aim of the funding programmes
Switzerland has set itself the goal of halving its greenhouse gas emissions by 2030. The long-term climate strategy, which was approved by the Federal Council in 2021, also sets out the intention to reach net-zero greenhouse gas emissions by 2050. This target is enshrined in the Climate and Innovation Act (CIA), and the measures to be taken to achieve the climate protection goal are set out in both in the CIA and the CO2 Act. These include funding to decarbonise industry, as specified in Article 37b of the CO2 Act, and promoting innovative technologies and processes, as laid down in Article 6 CIA. The aim of the funding programmes is to support the industrial sector in its decarbonisation efforts.
1. Industrial decarbonisation funding programme (ETS)
The emissions trading system (ETS) is an instrument established under the CO2 Act to limit greenhouse gas emissions in the energy-intensive industrial sector. The proceeds generated by auctioning emission allowances are used to finance measures such as the industrial decarbonisation funding programme. This funding can help companies to implement measures involving financial or technical risks.
Who is the funding programme for?
The funding programme is designed for industrial installation operators who are required to participate in the emissions trading system (ETS) under Article 16 of the CO2 Act.
Installation operators who have successfully applied for exemption from participation in the ETS (opt-out) or requested to participate voluntarily in the ETS are not eligible to apply for this funding programme.
Which measures are eligible for funding?
Significant contribution to decarbonisation
Measures must make a significant contribution to decarbonisation of the relevant industrial installation in order to be eligible for funding under this programme. Financial assistance can only be granted for measures that would not be implemented without this funding. Eligible measures must also be compatible with the 2050 net-zero target set out in the CIA.
Carbon capture and storage (CCS)
Applications for measures that capture and permanently store hard-to-avoid CO2 at installations included in the ETS (ETS installations) are generally eligible for funding. Hard-to-avoid emissions are those originating from the following installations:
- Installations with process-related CO2 emissions that cannot be mitigated through conventional reduction measures, such as replacing fossil fuels. Examples include installations that produce cement clinker.
- Existing installations whose processes require steam or heat at high temperatures of at least 800 °C. The funding application must demonstrate plausibly that carbon capture is a better option from an economic and operational perspective than alternatives such as electrification or use of climate-friendly fuels.
Required project status
Applications can be submitted for measures whose implementation is scheduled to begin (point of no return) within the next two years. Specifically, this means that measures are only eligible for funding if they have not yet been initiated but will begin within two years of the application being submitted.
Ineligible measures
The following measures in particular do not make a significant contribution to decarbonising installations or, in some cases, are not compatible with the Climate and Innovation Act’s 2050 net-zero target and are therefore not eligible for the funding programme:
- Substituting one fossil fuel with another fossil fuel, e.g. replacing heating oil with natural gas
- Replacing an existing installation with a new one that does not conform to the current state of the art
- Measures at installations supplying district heating networks that mainly provide heat to residential buildings
- Measures at reserve power plants, as these are only operated for winter reserves and their annual operating time is low
- Measures to capture CO2 that is then reutilised and emitted back into the atmosphere (carbon capture and utilisation)
- Measures at installations for research, development, education and information
How to apply
Below you can find out how to apply for financial assistance under the industrial decarbonisation funding programme.
Applying for the industrial decarbonisation funding programme
Index
2. Funding programme to promote innovative technologies and processes
Who is the funding programme for?
Companies can apply for funding for innovative technologies and processes aimed at implementing decarbonisation measures or programmes. Individual applications and applications from industry programmes are eligible. This financial assistance is jointly administered by the FOEN and the SFOE in accordance with Article 6 of the Climate and Innovation Act (CIA) and can be applied for via the SFOE.
Which measures are eligible for funding?
The measures and programmes must be innovative, lead to a reduction in greenhouse gas emissions and meet the requirements set out in the SFOE’s guidelines. Funding applications must include a net-zero roadmap that enables companies to plan their decarbonisation and reduce their emissions to net zero by 2050 at the latest.
Financial assistance may be provided in the form of investment contributions or annual operating subsidies, either through direct applications or as part of a project tender. Grants of up to 50 per cent of the allowable costs may be awarded. For companies participating in the emissions trading system (ETS), the amount of financial assistance will be reduced by the expected profits from emissions trading.
How to apply
Further information and guidelines on net-zero roadmaps and funding can be found here:
Contact: mail@itinero.info