Exemption from the CO₂ levy: Reduction obligation
Operators of installations that do not participate in the Emissions Trading System and carry out certain activities can get exempted from the CO2 levy by entering into a reduction obligation agreement. They must reduce their greenhouse gas emissions and decarbonise their operations.
Exemption from the CO₂ levy subject to a reduction obligation: step by step
Operators of installations that perform economic activities or certain activities under public law can be exempted from the CO2 levy. In return, they must commit to reducing their greenhouse gas emissions and decarbonising their operations by entering into what is known as a reduction obligation. Installation operators must submit an application to the FOEN for this reduction obligation.
Reduction obligation: Information for installation operators exempt from the CO₂ levy
Installation operators with a reduction obligation undertake to reduce their greenhouse gas emissions and decarbonise their operations. They must submit a report annually regarding their emissions, the measures implemented and any deviations from their targets, as well as updating their decarbonisation plan every three years.
The reduction obligation is a climate policy instrument. It is aimed at operators of installations that do not participate in the Emissions Trading System due to the volume of greenhouse gas emissions they emit and that carry out an economic activity or certain activities under public law, such as running swimming pools, hospitals or retirement and nursing homes. Operators pay a CO2 levy on fossil fuels, but this may be reimbursed if they commit to reducing their fuel use instead.
Energy efficiency target agreement
The reduction obligation is based on a target agreement with the federal government. Key information on target agreements can be found on the website zv-energie.admin.ch, which is operated jointly by the FOEN and the SFOE. Targets are recorded and monitored using the ZVM tool.
A reduction obligation lasts until 2040, is formally issued by the FOEN and essentially consists of the following:
- Application for a reduction obligation
- Valid target agreement to increase energy efficiency and reduce CO2 emissions
- Annual monitoring report
- Decarbonisation plan
Exemption from the CO2 levy subject to a reduction obligation: step by step
Reduction obligation: Information for installation operators exempt from the CO2 levy
In order to be exempted from the CO2 levy, companies that produce a high volume of greenhouse gases can choose to participate in the Emissions Trading System (ETS) instead of a having a reduction obligation. Operators of fossil-fuelled combined heat and power plants (CHP plants) may also be exempted from the CO2 levy.
Emissions trading system (ETS)
Exemption from the CO2 levy for fossil fuel combined heat and power plants