Switzerland has set itself ambitious climate policy targets at a national and international level. Under the terms of the Swiss CO2 Law, CO2 emissions stemming from the use of fossil fuels must be reduced by an average of 10 per cent compared to their 1990 level by the time period 2008 to 2012. However, recent prognoses indicate that, rather than the required 4 million tonnes, CO2 emissions will lie only 1.1 million tonnes below their 1990 levels. In the absence of further measures, Switzerland will thus miss its target by 2.9 million tonnes of CO2. This is mainly due to emissions growth in the transport sector. In addition to the political and voluntary measures already in place, further measures are thus required in order to achieve the climate targets which have been set.
Swiss industry takes the threat posed by climate change seriously. Switzerland must contribute towards the reduction of greenhouse gas emissions in order to contain the impact of climate change at a manageable level. Swiss industry is convinced that Switzerland can achieve this with voluntary measures. The "climate cent" is just such a voluntary measure in accordance with the CO2 Law.
Swiss industry is further convinced that the voluntary measure of the "climate cent" is significantly more cost-efficient than the alternative designated by law, the carbon tax on motor fuels. Indeed, the Climate Cent Foundation mainly reduces greenhouse gases abroad, where cutting emissions is cheaper than in Switzerland by a factor of 5.
The Foundation can count with annual revenues of around 100 million Swiss Francs, stemming from a charge of 1.5 cent per litre levied on petrol and diesel imports. It uses this revenue to provide a credible and cost-efficient contribution to the fulfilment of Switzerland's national and international climate commitments. The Foundation's resources are managed independently and are used exclusively to close the expected gap in CO2 emissions reductions.
The Foundation's quantitative targets are specified in the framework agreement concluded between itself and the Swiss Federal Department of Environment, Transport, Energy and Communications (DETEC) on 30 August 2005. The Foundation has committed to reducing a total of 12 million tonnes of CO2 over the period 2008 to 2012. A minimum of 2 million tonnes must be reduced in Switzerland, a maximum of 10 million tonnes may be cut abroad.
Reducing CO2 emissions is considerably more expensive in Switzerland than abroad. However, the specific location of CO2 emissions reductions is irrelevant in view of global climate protection. Whether in India or in Switzerland: cutting CO2 emissions by one tonne in either location has the equivalent effect in terms of climate protection. It is therefore reasonable to commit financial resources where their impact is maximised. Quoting Professor C.C. von Weizsäcker, the renowned environmental economist: "Economic efficiency is also environmental efficiency!".
Abroad, the Foundation makes use of the project-based mechanisms provided by the Kyoto Protocol, which rely on an internationally agreed framework. Projects approved by the UN accreditation body generate tradeable certificates, which Switzerland can claim towards the fulfilment of its reduction target. The Foundation uses its resources to purchase such certificates and transfers them to the Swiss Confederation towards the fulfilment of the climate target.
Both in Switzerland and abroad, the Climate Cent Foundation generally invests in climate protection projects which stand out for their high credibility, cost-efficiency and low risk profile. Transparency and traceability in the assessment, selection and support of projects are paramount.
On one hand, emissions reductions within Switzerland stem from the transport sector. The Foundation thus supports Eco-Drive® (an economical driving technique), the practice of car-sharing or the use of alternative fuels such as bioethanol, biodiesel or biogas. Further emissions reductions stem from the heating sector. The Foundation thus promotes the use of better windows or more effective thermal insulation in the context of building renovations, as well as projects aimed at the use of wood energy or waste heat.
Climate protection projects abroad, whose resulting certificates the Climate Cent Foundation purchases, partly belong to the same project categories as projects in Switzerland. In addition, there are projects aimed at generating power using renewable energy as well as projects aiming to reduce the greenhouse gas methane.
Always taking into account the criteria of credibility, cost-efficiency and low risk profile, the Climate Cent Foundation selects climate protection projects abroad by scanning internationally available projects and making optimal use of this supply. The Secretariat can call upon staff with an intimate knowledge of the international market for certificates and enlists the support of competent brokers if and as required. Furthermore, the Foundation participates in an acquisition fund for certificates set up by the Asian Development Bank (ADB).
In Switzerland, the Climate Cent Foundation will on one hand be supplied with climate protection projects by intermediaries with which it has set up contractual ties; on the other hand, it will invite project owners to directly submit concrete climate protection projects. Another pillar for emissions reductions is the Buildings Programme, developed jointly with the cantons, which targets home owners looking to renovate their building in an energetically efficient manner.
Climate protection projects aiming for certification according to the rules laid out by the Kyoto Protocol must be approved by the appropriate UN body. In order to ensure the credibility of certificates, the UN sets high requirements for the verification of emissions reductions. Project owners must be able to plausibly demonstrate that emissions are lower in the case of the project's realisation than they would be without the project (so-called additionality), as well as substantiating how emissions reductions generated by the project can be quantified. All indications must additionally be verified by an independent verification body.
In principle, climate protection projects in Switzerland are assessed using the same internationally recognised and tested criteria. If no corresponding internationally valid rules are in place, it is also possible to submit a project's impact analysis to the Swiss Federal Office of Energy for approval.
