The CO2 levy applies to fossil fuel sources that produce heat or electricity. The goal is to make fossil fuel-powered heating systems more expensive and to encourage the switch to greener alternatives. During the 2024 amendment of the respective law, an increase in the levy or an extension to other fuels, such as petrol or kerosene, was deemed not politically feasible. As a result, the levy will remain unchanged at CHF 120 per ton of CO2 for some time to come, i.e., it will fall steadily after adjustments for inflation.

Moreover, the funding instruments in Switzerland are not so focused at the national level. For example, there are cantonal differences in the amount of deductions that can be claimed against taxable income for energy efficiency measures. There are even community-specific differences in the subsidies.

Tax advantages are particularly relevant for properties held as private assets. Green investments can be deducted from taxes over several years or, in the case of photovoltaic systems, they do not count as value-enhancing in some situations.

Finally, buildings in the canton of Geneva that meet the High Energy Performance (HPE) or Very High Energy Performance (THPE) standard can benefit from an exemption on the additional property tax for 20 years. The HPE standard is awarded to new or refurbished buildings whose thermal envelope is upgraded to produce at least 10 watts per square meter of electricity, whose roof is equipped with solar thermal collectors to provide at least 30% of the heat needed for domestic hot water, and whose main heat supply comes from non-fossil local energy sources or from a district heating network whose non-fossil local energy content is at least 50%. The THPE standard is awarded to new or refurbished buildings whose thermal envelope is upgraded to produce at least 30 watts per square meter of electricity, whose roof is upgraded with solar thermal collectors to provide at least 50% of the heat needed for domestic hot water, and whose main heat supply comes from non-fossil local energy sources or a district heating network whose non-fossil local energy content is at least 80%.