Switzerland has signed and ratified the Paris Climate Agreement. To achieve the goals of this agreement, the Federal Council has decided to reduce CO2 emissions to net zero by 2050. In addition to the net-zero target, the law sets interim targets for 2040 and for the periods 2031-2040 and 2041-2050, and contains reference values for the buildings, transport and industry sectors. For the building sector, this means an 82% reduction by 2040 compared to 1990. By 2020, the reduction has already accumulated to -40%.

The federal government is planning measures to achieve this goal: The replacement of oil, gas and electric heating systems with climate-friendly heating systems is to be supported with CHF 2 billion. These subsidies are distributed in addition to the existing building program funding mentioned in the “Incentives for green retrofit” section. This is the core of a new federal law that the Swiss people approved in 2023. New obligations or even bans on certain heating systems are not part of this law. It will come into force in 2025.

The CO2 Act serves as a further instrument for implementing the Paris targets and is currently undergoing the parliamentary amendment process for the period after 2025. Following the Swiss people’s rejection of an earlier draft of the law, it no longer contains any far-reaching obligations for the building sector. The only relevant levy is the CO2 levy, which would make fossil fuel-powered heating systems more expensive and, therefore, negatively affect their running costs. However, this levy remains unchanged at CHF 120 per ton of CO2.

With regard to the exclusions for existing buildings and heating systems, the protection of the status quo is still guaranteed by the Swiss Constitution and by law. Under the national laws mentioned in this section, no one is currently forced to change a running system. Additionally, the obligations under cantonal energy laws only apply in most cases when the heating system is replaced. The canton of Basel-Stadt is an exception because it bans even functioning fossil fuel heating systems by 2035. Further, changing the ownership of property never triggers a refurbishment obligation.