New net-zero roadmap rules for companies

In January 2025, Switzerland enacted a new climate policy mandating net-zero roadmaps for many companies. It also submitted its second Nationally Determined Contribution (NDC) to the UNFCCC, increasing the nation’s commitment to a 65% reduction in GHG emissions by 2035, compared to 1990 levels. Additionally, the country put forth a call for new carbon technology proposals in an effort to boost large-scale investment in climate action across the public and private sectors.

Roadmaps to carbon neutrality by 2050 now required

As part of this effort, the Swiss government published the Net-Zero Timetables Directive on January 1, providing guidance for companies that will be required to develop roadmaps aligned with the national goal of emissions neutrality by 2050. The Directive sets requirements for reducing scope 1 and scope 2 emissions and applies to all Swiss companies outside of the agriculture sector. 

In a notable shift, the Directive also mandates that Swiss companies set carbon dioxide removal (CDR) targets to offset direct and indirect emissions by 2050. These targets must include milestones at five-year intervals leading up to 2050. In most instances, the roadmaps in the Directive can be considered as voluntary guidelines, unless a Swiss-based corporation is seeking funding from the Climate and Innovation Act, in which case the use of the Directive’s net-zero roadmaps becomes mandatory. 

Building on Switzerland’s climate policy foundation

The Net-Zero Timetables Directive builds on a strong foundation of national policy support for the climate transition. Switzerland’s climate legislation began with the Federal Act on the Reduction of Greenhouse Gas Emissions (CO2 Act) in 2000, which established a legislative framework to set the country’s long-term emissions reduction targets. The CO2  Act established a national goal of net-zero emissions by 2050 and set interim targets for 2030, relative to 1990 levels. The CO2 Act underwent several amendments in recent years, including the most recent amendment in January 2025, which codified the 2030 emissions reduction target into national law. One of the key emissions mitigation mechanisms of the CO2 Act is the carbon levy, which went into effect in 2008. This levy taxes the use of fossil fuels at stationary sources at a rate of CHF120 (or approximately $150) per tonne of CO2, covering approximately 40% of the country’s emissions. Revenues from the carbon levy are redistributed to citizens, businesses, the national building program, and the technology fund. 

Switzerland also operates an emissions trading scheme (ETS), launched in 2008. The ETS covers emissions from domestic aviation, as well as the industry and power sectors. Certain emissions-intensive, fixed-production facilities can be eligible for an exemption to the carbon levy by either participating in the Swiss ETS or submitting commitments to the  Federal Office for the Environment (FOEN) of plans for emissions reductions. For more information on the carbon levy exemptions, refer to the FOEN's report (document in German). In 2020, Switzerland’s ETS linked with the EU ETS, increasing the price of allowances to align with those adopted across the EU.

New funding for carbon management technologies

Alongside the Directive, the Swiss government also launched a call for proposals for carbon management solutions in January 2025. This program intends to fund point source CO2 capture technologies, as well as engineered CDR technologies.

The goal of this tender is to enable solutions that will capture and store half a million tonnes of CO2 by 2030. Proposals are due by April 25, 2025, and funding will be awarded before the end of the year. 

Impacts on Swiss companies and global climate goals

Switzerland has taken its Paris Agreement commitment to the next level. The country has strengthened its 2023 Climate and Innovation Act with the new Net-Zero Timetables Directive for companies, issued a call for proposals to subsidize carbon mitigation technology, and submitted a more ambitious NDC to the UNFCCC (committing to 65% reduction in GHG emissions by 2035, compared to 1990 levels). 

Despite the distinct obligations for Swiss-based companies and foreign companies, the Directive offers a strong baseline for climate transparency and corporate accountability. Through these efforts, Switzerland aims to capture and store half a million tonnes of CO2 by 2030, achieve a 65% emissions reduction by 2035, and reach net zero by 2050. 

For a country that ranks 20th among the world's wealthiest countries, with an estimated GDP of $884.94 billion (USD), this climate policy leadership may prove both exemplary and catalytic.

The climate transition continues to be a priority, globally

Switzerland’s policies have not emerged in isolation. Although the country’s financial investment and emissions targets are not uniquely ambitious, its renewed policy framework reflects broader momentum in climate action. 

Despite political headwinds and economic instability, countries around the world are doubling down on their climate commitments. Switzerland’s policies are a model for how governments can guide private-sector alignment with climate goals: through clear targets, supportive funding, and accountability measures that go beyond pledging. 

For a deeper dive into Switzerland’s new climate policies and how they fit into the broader global landscape, read the April 2025 edition of The Navigator. This comprehensive quarterly report covers key developments in climate policy, carbon markets, and carbon management technologies.