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Switzerland · Carbon tax

CO2 Levy on Thermal Fuels (CO2 Act)

Switzerland has raised a CO2 levy on fossil thermal fuels such as heating oil and natural gas since 2008, currently CHF 120 per tonne of CO2. Two thirds of the revenue is returned to the population and businesses and one third funds building and technology programmes.

In forcesince 2008Verified 4 Oct 2026

The CO2 levy is an incentive tax under the Federal Act on the Reduction of CO2 Emissions (CO2 Act), collected and refunded by the Federal Office for Customs and Border Security. It applies to fossil thermal fuels — heating oil, natural gas, coal, petroleum coke and others — but not to motor fuels such as petrol and diesel.

The rate is CHF 120 per tonne of CO2. Each year two thirds of the revenue is redistributed to the population and businesses irrespective of how much fuel they use, and one third finances the Buildings Programme and the Technology Fund. Operators in the Swiss ETS, facilities with emission reduction obligations and operators of fossil-fuel combined heat and power plants can be exempt. A revised CO2 Act entered into force on 1 January 2025.

Legal journey

From proposal to operation

  1. Enacted

    First federal CO2 Act adopted

    newsd.admin.chOfficial
  2. In force

    CO2 levy on fossil thermal fuels first levied

    bafu.admin.chOfficial
  3. Milestone

    Totally revised CO2 Act adopted, retaining the levy

    faolex.fao.org
  4. Milestone

    Levy rate rises to CHF 120 per tonne of CO2

    bazg.admin.chOfficial
  5. Milestone

    Parliament agrees revised CO2 Act for 2025-2030

    climate-laws.org
  6. Milestone

    Revised CO2 Act with targets and measures to 2030 enters into force

    bafu.admin.chOfficial

Each milestone links to the page it was checked against. Dates are given only to the precision the source supports.

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