During its meeting on 27 November 2024, the Federal Council resolved to implement the Climate Protection Ordinance (“CPO”) alongside the Climate and Innovation Act (“CIA”) from 1 January 2025. The CIA formally establishes Switzerland’s long-term climate objectives. The CPO delineates the financial mechanisms for the industrial and construction sectors as stipulated in the CIA.

The CIA codifies Switzerland’s climate objectives into legislation, namely the net-zero goals for 2050 and the interim targets for the periods 2031–2040 and 2041–2050. The CIA is essential for the future formulation of climate policy and shall simultaneously establish the basis for its ongoing evolution. In its press release, the Federal Council emphasised that the CPO shall specifically govern the funding mechanisms for the industrial and construction sectors outlined in the CIA, along with initiatives related to climate change adaptation and the environmentally sustainable alignment of financial resources.

The CIA allocates financing until 2030 for novel technologies and methods aimed at reducing greenhouse gas emissions or facilitating CO2 collection and storage. Companies may get advantages from this funding by formulating a ‘net-zero roadmap’ and enumerating the steps to be financed within it. The CPO delineates additional financing conditions and the process for disbursing financial support. The ordinance furthermore governs how SMEs may leverage the financial instrument via their industry organisations.