10. February 2025

The Swiss Climate and Innovation Act (KlG)

The Swiss Climate and Innovation Act (KlG), which has now come into force, enshrines Switzerland's long-term climate goals and promotes the transition to a sustainable and innovative economy. It forms the basis for Switzerland's future climate policy. But what does it mean for companies?

Key contents of the KlG

1. Long-term climate targets: The KlG stipulates that Switzerland must achieve net-zero emissions by 2050. This means that greenhouse gas emissions must be reduced as much as possible and remaining emissions must be offset by negative emission technologies. To achieve this, interim targets and benchmarks have been set for the building, transport and industry sectors. All companies in Switzerland must achieve net zero by 2050 – at least for Scope 1 and 2.
   
2. Promoting technologies and processes: The law provides financial support for innovative technologies and processes that help to reduce greenhouse gas emissions. Companies can apply for funding to implement innovative projects that contribute to decarbonization.
3. Adapting to climate change: The law promotes measures to adapt to the effects of climate change.
   
4. Financial flows and climate tests: The law provides a basis for aligning financial flows with low-emission development. To this end, voluntary climate tests are being established for the financial sector to promote the climate-friendly alignment of investments.

Net-zero roadmaps for companies

A central component of the KlG is the option for companies to create net-zero roadmaps. These roadmaps are crucial to achieving the goals of the law and advancing the decarbonization of the economy. But what are net-zero roadmaps?

Net-zero roadmaps are detailed strategies that help companies reduce their greenhouse gas emissions to zero by 2050 at the latest. These plans include, among other things:

• A CO₂ balance: a comprehensive record of the company's current emissions.
• Reduction path with reduction targets: specific targets for the gradual reduction of emissions based on the guidelines of the KlG.
• Action plan: detailed measures that must be implemented to achieve the reduction targets.
  
• Development path for negative emission technologies: planning to offset the remaining emissions

Promotion and support

Companies that create net-zero roadmaps can receive financial support from the federal government. Among other things, new technologies and processes are promoted. Companies can receive financial support for the development and implementation of innovative technologies and processes that contribute to the reduction of greenhouse gas emissions. This includes, for example:

• Measures to reduce direct and indirect emissions (Scope 1 & 2).
• Measures to reduce direct upstream and downstream emissions (Scope 3).
• Measures to store CO₂ in products or underground (negative emissions). For example, the application of carbon capture and storage (CCS) technologies
  

Negative emissions technologies play a crucial role in the context of the Climate Change Act in achieving the net-zero targets. They are also part of the net-zero roadmaps. These technologies are designed to remove CO₂ from the atmosphere and store it permanently. Negative emissions technologies include, for example:

• Direct air capture (DAC): technologies that capture and store CO₂ directly from the air.
  
• Bioenergy with carbon capture and storage (BECCS): combining biomass energy with carbon _dioxide capture and storage technologies.

These technologies are essential to offset remaining emissions that cannot be completely avoided. By funding negative emissions technologies, the KlG supports the development and implementation of these important measures to achieve Switzerland's climate goals.

How can Swiss Climate support you?

Our experienced team is ready to support your company in developing net-zero roadmaps and submitting a funding application. Contact us for a non-binding discussion.

Your benefits

Creating net-zero roadmaps offers companies several advantages:

• Competitive advantage: Companies that adopt sustainable practices early can position themselves as pioneers and gain a competitive advantage.
• Cost savings: Reducing emissions and using efficient technologies can lower costs in the long term.
• Reputation: A strong commitment to climate protection strengthens a company's image and reputation.

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