Energy in Switzerland
The majority of energy consumed in Switzerland is derived from petroleum and motor fuels, accounting for 43% of the total, followed by electricity at 26%, and gas at 15%.
This decision laid the groundwork for the 2050 Energy Strategy, which involves decommissioning Switzerland's five nuclear power plants as they reach the end of their operational lives, with no plans for new replacements.
This legislation establishes a framework for Swiss climate policy, setting interim targets for reducing greenhouse gas emissions by 2050.
The current consumer society, developed using mostly oil, natural gas, water power (turbines) to a lesser extent, and later nuclear energy.
The high proportion of energy generated through hydroelectric power and the lack of natural resources (such as coal and oil) help to explain why such a situation is strategically beneficial in Switzerland.
Critics pointed out the lack of independence of the political institutions (cantonal and federal), of which several elected members are connected with the hydroelectric industry.
[4] In line with the 2050 Energy Strategy, the government aims to increase hydropower output to 38,600 GWh annually by 2050 through plant renovations, expansions, and new constructions.
[20] In 2022, there were 41 operating wind turbines with 87 MW of installed capacity, producing 146 GWh of electricity annually, accounting for 0.3% of total energy consumption.
[21] According to a 2018 IEA Bioenergy report, biomass accounts for 5.5% of Switzerland's total energy consumption and approximately 2.9% of its electricity production.
[25] In 2023, a report from the Swiss Federal Institute for Forest Snow and Landscape Research suggests Switzerland could double its biomass energy production, potentially reaching 97 peta joules annually, with 50 PJ sourced from wood combustion.
Despite the advantages of biomass energy, such as its ability to provide peak electricity, concerns persist regarding scarce raw materials, high production costs, and environmental impacts.
It participates in multilateral negotiations on energy policy and engages in bilateral committees for nuclear safety with neighboring countries like France, Germany, and Italy.
It is a top performer in environmental sustainability, alongside Sweden and Norway, where low carbon sources represent over 95% of electricity generation.
[6] A study published in 2009 showed that the emissions of carbon dioxide (CO2) due to the electricity consumed in Switzerland (total: 5.7 million tonnes) were seven times higher than the emissions of carbon dioxide due to the electricity produced in Switzerland (total: 0.8 million tonnes).
The principal sources of these emissions are road transport, accounting for 40% of the total, and air travel, responsible for 10% prior to the pandemic.
Despite its sustainability image, Switzerland faces obstacles in waste management, car usage reduction, and air travel limitation.
[37] In 2005, the federal government decided that additional measures were needed to meet Kyoto Protocol commitments of an 8% reduction in emissions below 1990 levels between 2008 and 2012.
[39] Companies are allowed to escape the tax by participating in emissions trading where they voluntarily commit to legally binding reduction targets.
However, a company that fails to surrender sufficient allowances must pay the tax retroactively for each tonne emitted since the exemption was granted.
[38] Since 2005, transport fuels in Switzerland have been subjected to the Climate Cent Initiative surcharge—a surcharge of SFr 0.015 per liter on gasoline and diesel (US$0.038 per gallon).
In their 2007 review, IEA recommended that Switzerland implement a CO2 tax on transport fuels or increase the Climate Cent surcharge to better balance the costs of meeting emissions reductions targets across sectors.
Furthermore, in 2021, legislation was passed to reinforce the expansion of domestic renewable energies, aiming to enhance the country's supply security.
To ease economic impacts, two-thirds of this revenue returns to households and businesses, offsetting health insurance and social security costs.
Nevertheless, proposals to increase carbon pricing on stationary sources and transport fuels in June 2021 were met with public resistance and ultimately rejected.
This agreement, which was formally established in 2020, permits businesses in both regions to easily exchange emissions allowances, improving market efficiency and lowering total compliance costs.
By encouraging businesses to invest in cleaner fuels and technology, this mechanism enhances their support for long-term climate goals.
The integration, which includes areas involving heavy industries and aviation, demonstrates a collaborative strategy for attaining notable carbon reductions on a global scale.
