Swiss emissions trading system: emissions rights for industrial companies

In its amended CO2 Act, Switzerland pronounced an emissions trading system (CH-EHS), according to which the Swiss Federal Office for the Environment allocates emissions rights to energy-intensive industrial companies. Ernst Basler + Partner AG calculates these emissions rights.

Even large-scale, energy-intensive businesses must reduce their CO2 emissions in the long term. Since the introduction of the CO2 Act they are automatically included in the Swiss emissions trading system. This means that they are given an annual emissions rights allocation by the Swiss Federal Office for the Environment. If the company succeeds in keeping within these limits, they do not incur any additional costs. If the annual emissions are lower, the company may trade their emissions rights or – in the case of higher emissions – buy in emissions rights. This financial incentive reduces CO2 emissions where it makes most sense.

The emissions rights are calculated on the basis of benchmarks, whereby the Swiss Federal Office for the Environment allocates to the company free of charge the number of emissions rights considered necessary for CO2 efficient operations. Ernst Basler + Partner is providing support to the Swiss Federal Office for the Environment in the calculation and allocation of the emissions rights. This work includes the definition of the system limits and the benchmarks to be applied, the calculation of the emissions to date and the annual emissions rights.