Industry-friendly, effective, global climate policy

Climate protection must not become a location risk. If Switzerland wants to achieve its net-zero targets, it needs a climate policy that is effective, promotes innovation and ensures international competitiveness. Instead of new bureaucracy and one-sided burdens, we need technology-neutral solutions that strengthen industry, climate targets and prosperity in equal measure.

The chemical and pharmaceutical industry in Switzerland supports the federal government's ambitious climate targets, in particular the net-zero target by 2050. At the same time, it is clear that a one-sided or bureaucratically overloaded climate policy could jeopardise Switzerland's competitiveness as a business location.

Climate protection and competitiveness must go hand in hand

Switzerland has created a clear legal framework with the CO2 Act and sectoral reduction pathways for industry, buildings and transport. Swiss industry has already reduced its emissions by over 35 per cent since 1990 and is on track to achieve its further reduction targets for 2040. At the same time, industrial value added has doubled – proof that climate protection and economic success do not have to be mutually exclusive. Climate policy measures should preserve the competitiveness of industry and not place an unnecessary burden on jobs, investment and innovation in Switzerland. Shifting emissions abroad (carbon leakage) offers little benefit for climate protection and weakens Switzerland as a business location.

Five guidelines for an industry-friendly climate policy

1. Ensuring competitiveness: Climate policy must maintain the international competitiveness of industry in Switzerland. Instruments such as the CO2 incentive tax and target agreements have shown that emissions can be reduced without jeopardising Switzerland's position as a business location. However, unilateral tax increases or protectionist measures such as a carbon border adjustment mechanism (CBAM) pose a risk to the export-oriented chemical and pharmaceutical industry.

2. Prioritising impact and efficiency: Measures must be prioritised according to their cost-benefit ratio. Technologies such as carbon capture, utilisation and storage (CCUS) should be promoted at an early stage, as they are indispensable in the long term. Foreign measures can be usefully integrated into the mix as long as quality is guaranteed.

3. Strengthen proven instruments: The proven target agreement system should be further strengthened and simplified, rather than being burdened by rigid requirements or additional bureaucracy. In addition, the international harmonisation of climate policy and connection to the EU emissions trading system are key factors in avoiding distortions of competition, increasing the effectiveness of climate measures and integrating Swiss industry into global climate protection.

4. Removing bureaucratic obstacles: Overregulation ties up resources that could be channelled into concrete climate protection measures. All new regulatory requirements and reporting obligations should be reviewed in terms of their cost-benefit ratio. SMEs in particular must not be overburdened.

5. Ensuring security of supply: Successful implementation of climate targets requires a secure and stable energy mix of electricity, green gases – i.e. climate-friendly, renewable gases such as biogas, hydrogen or synthetic methane – and, in a global context, nuclear energy. Only with a reliable, low-emission and affordable energy supply can companies invest, defossilise their production processes and achieve long-term transformation goals.

Global dimension and international cooperation

The growing differences in climate ambitions between the US, the EU and individual emerging and developing countries make an internationally coordinated approach more important than ever. Switzerland can make an important contribution to this through technology transfer, participation in international standards and the definition of viable global measures.

Conclusion

Climate protection remains a key task, but it should be balanced with economic stability and industrial competitiveness. A pragmatic, technology-neutral and internationally coordinated climate policy can support investment, promote innovation and drive the transformation of industry towards greater sustainability. In this way, Switzerland can pursue its climate goals while maintaining its economic performance.