3.5 Switzerland’s Climate Commitment

On June 18, 2023, Swiss voters accepted the “Federal Act on Climate Protection Targets, Innovation and Strengthening Energy Security”. This law, which is expected to be enacted alongside the Climate Protection Ordinance on January 1, 2025, reinforces Switzerland's commitment to combating climate change and adapting to its impacts. The law focuses on three main objectives:

1. Reduce greenhouse gas emissions and utilize negative emission solutions

The law mandates a net-zero emissions target by 2050, which companies are expected to achieve primarily through significant reductions in greenhouse gas emissions, with any remaining emissions being offset using emission-neutralizing technologies. This approach emphasizes taking active steps to reduce emissions.

2. Adapt to climate change and strengthen resilience

Switzerland is committed to actively addressing the challenges of climate change and protecting itself from its impacts. This includes measures to prepare for climate-related changes, as well as strategies to manage these challenges.

3. Steer financial capital toward climate-resilient development

The law aims to direct financial investments toward the development of low-carbon technologies and the strengthening of climate resilience. This acknowledges the role of the financial sector in supporting sustainability initiatives.

Supported by the Paris Agreement (2017) and the TCFD framework, Switzerland is reaffirming its commitment to climate protection. The law defines specific medium- and long-term targets and focuses on incentives rather than prohibitions. This development highlights the urgency for companies to align their climate strategies with Switzerland’s targets.