Businesses using thermal fossil fuels
The revised CO2 Act provides for an increase of the CO2 levy on thermal fossil fuels. As a result, all businesses using thermal fossil fuels, such as heating oil, natural gas and coal may be impacted by the increase of the CO2 levy. Those who commit to improve the efficiency of their installations with regards to CO2 emissions by a certain amount each year until 2030 will, however, be able to avoid an increase in their tax liabilities by claiming a refund of the CO2 levy.
With the revised CO2 Act, producers and importers of fossil fuels in Switzerland will have to compensate a higher rate of their CO2 emissions. In case of failure to comply, the new measures may therefore result in higher penalties imposed that cannot be offset by a surcharge on fuel, resulting in a potential loss of profitability. In order to avoid these penalties, businesses especially in the oil industry may invest in CO2 reduction measures in Switzerland and abroad as well as in the transition to biofuels.
Automotive manufacturers and importers will be subject to progressively tighter CO2 emission targets for new passenger cars and new light commercial vehicles. New target values will also be introduced for heavy commercial vehicles imported into or produced in Switzerland. In order to avoid paying significant penalties that could impact their margins, automotive companies will want to accelerate their transition to the commercialization of eco-friendly vehicles.
Real estate and construction sectors
According to the revised CO2 Act, new buildings constructed as of 2023 must no longer generate any CO2 emissions. Stricter CO2 emission thresholds will also be imposed with respect to existing buildings. Businesses in the real-estate and construction sectors are therefore encouraged to continue investing in energy efficient building construction methods and renovation plans to avoid dry loss of market share.
Airlines and private jet operators
With the aim to encourage the use of alternative means of transport, the revised CO2 law provides for an incentive tax on flight tickets and private jet flights departing from Switzerland. As a consequence, both Swiss and foreign airlines may be subject to a new tax and have to implement new compliance processes.