Citation
(2008), "Carbon trading scheme: Switzerland takes a lead", Management of Environmental Quality, Vol. 19 No. 6. https://doi.org/10.1108/meq.2008.08319faf.001
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited
Carbon trading scheme: Switzerland takes a lead
Article Type: Feature From: Management of Environmental Quality: An International Journal, Volume 19, Issue 6
The Swiss Government has distributed carbon allowances to companies that have opted out of a national CO2 levy on heating fuels in favour of an emission trading scheme. The government allocated 2.2 m allowances to around 900 firms – their quota for 2008.
These firms have chosen to adopt emissions caps for 2012, which they can meet through trading, rather than paying the tax of SFr12 (€7.2) per tonne of CO2 emitted from heating fuels. Firms can buy allowances from each other and purchase Kyoto protocol flexible mechanism credits limited to eight per cent of each installation’s allocation. They may also be allowed to access the European carbon trading scheme in future.
Under the reductions agreed so far, the Swiss Environment Ministry expects a 2 per cent cut in emissions by 2010 relative to 2000. Companies will have to submit allowances for compliance for the first time in June 2009.
Small and medium-sized companies that have adopted objectives other than caps – such as emission benchmarks or reduction plans – do not receive free allowances. But, they can buy them to meet their targets.