Outlook for carbon offset obligation from 2025
KliK Foundation | In Switzerland, the revised CO2 Act, which was passed by the Federal Councils in March of this year, enters into force on 1 January 2025. Unlike in 2021, the referendum was not held this time. The lack of political aggression reflected therein is a direct consequence of the fact that the law brings little newness. It mainly relies on tried-and-tested climate policy instruments and only tightens them moderately.
Probably the greatest tightening concerns the carbon offset obligation for fossil fuels. For example, the amount of CO2 emissions to be offset annually on average for the years 2025 to 2030 will double compared to the average for the years 2021 to 2024 to 5 million tonnes. By contrast, Parliament left the maximum carbon offset surcharge of 5 centimes per litre of fuel untouched.
Without increasing the funds available for this purpose, twice as many certified emission reductions from climate protection activities are to be financed as before. This is only possible if the obligation to achieve emission reductions in Switzerland is partially waived in favour of a greater reduction in emissions abroad, which costs four times less per unit. Accordingly, the federal government wants to reduce the obligation to offset domestically by 3 percentage points and increase the obligation to offset abroad by 12 percentage points.
As 2030 approaches, it will become increasingly difficult to initiate and implement high-quality climate protection activities to the required extent. In our statement on the revision of the CO2 Ordinance, we are therefore calling for the Federal Council to set the carbon offset rate up to 2035 today in order to create the horizon needed for long-term investments.
Heating networks: Registrations only possible until the end of 2025
The funding programme for heating networks with climate-friendly energy sources such as biomass or waste heat can only accept new projects until the end of 2025. This is in view of the fact that the statutory carbon offset obligation for fuel importers and thus the mandate given to the KliK Foundation to finance climate protection projects still applies until the end of 2030. A continuation beyond this is still uncertain. It is therefore still possible to register a new or expanded heating network with renewable energy sources by 31 December 2025 at the latest. In order to receive funding, a project must be registered in the programme before the first notable contract is awarded (e.g. boiler order or contract for work and services).
Find the right funding for your heating project!
Are you planning to replace a fossil-fuelled heating system or would you like to optimise your current heating system? With the KliK Foundation’s digital guide (“Heat Compass”) you can quickly and easily find the right funding for heating optimisation or renovation.
Electric construction vehicles and electric farm loaders: annual operating contribution instead of investment contribution from 2025
The KliK Foundation will pay an investment contribution to programme participants who put their electric construction vehicle or electric farm loader into operation before the end of the year. Even after that, the funding programme for climate-friendly construction vehicles remains attractive. However, the compensation mode is changing: Anyone who puts their electric excavator or electric farm loader into operation on or after 1 January 2025 will receive an annual operating fee (from commissioning). The amount of the subsidy is based on the climate protection impact of using an electric vehicle compared to a diesel-powered vehicle and amounts to CHF 200 per tonne of CO₂ reduced.
Focus International
Visible and tangible effects of the Paris Agreement
Ghana | On 17 October, the KliK Foundation together with the Ghana Carbon Market Office (CMO) organised an event in Ghana’s capital Accra, where the Article 6.2 activities developed so far were presented. “Showcasing the Power of Article 6 in Ghana” was the official title of the event, which brought together committed programme owners and developers with interested investors and representatives of official authorities from Switzerland and Ghana. The presentations of the climate protection activities, some of which are already very advanced, showed in a kind of interactive showcase which technologies should be promoted under Article 6.2. They were able to exchange experiences, gather ideas and be inspired.
For example, the participants learned about new types of electric cook stoves that will one day be offered at affordable prices, about palm oil plants that are being modernised to enable more climate-friendly production, about electric bicycles and buses, about solar panels on rooftops and about the possibility of producing energy from biomass.
Ghana boasts a particularly high number of highly developed projects from the list of countries with a bilateral climate agreement with Switzerland. Some are about to be implemented, others are currently being validated. What they all have in common is the great commitment with which they promote climate protection activities. The programmes presented will become financially viable thanks to funding from the KliK Foundation.
Climate Conference 2024 in Baku: Official side event of the KliK Foundation
The 29th meeting of the Parties to the UN Framework Convention on Climate Change will take place in Baku, the capital of Azerbaijan, until 22 November.
The KliK Foundation participates in this COP29 as an observer organisation. The aim is to discuss the development of climate protection activities in accordance with Article 6.2 (Paris Agreement) with interested parties from countries with a bilateral climate agreement or in active negotiations with Switzerland. Together with Japan, A6IP/IGES, GEC and Switzerland, the KliK Foundation organised an official side event on 16 November on the topic of “High integrity in the implementation of Article 6.2”. The focus was on the status of cooperation with Switzerland’s 13 partner countries*, current climate protection activities funded by the KliK Foundation, and suggestions for interested parties for their own projects.
The Foundation team explained the requirements for financial support on the ground, addressing the opportunities and needs of both government actors and the private sector. The side event and attendance at the conference as a whole offer excellent opportunities to make new contacts with developers of climate protection activities and technology providers.
*Chile, Dominica, Georgia, Ghana, Malawi, Morocco, Peru, Senegal, Thailand, Tunisia, Ukraine, Uruguay, Vanuatu
Events Switzerland
In November, we will once again be taking part in a number of events and talk about our funding programmes: