The Federal Council of Switzerland has approved a new climate reduction target under the Paris Agreement. The new target mentions that Switzerland must reduce greenhouse gas emissions by at least 65% relative to 1990 levels by 2035, with an average reduction of 59% between 2031 and 2035. 

The new target may accelerate domestic climate action, driving heightened demand for sustainable investments in sectors like renewable energy, green infrastructure, and clean transportation, creating potential opportunities for private market companies, asset managers, and impact investors. In addition, they may also face challenges in aligning their strategies with national and global climate goals rigorously. 

Let’s explore the new reduction target in detail. 

Background on the 65% GHG reduction target of Switzerland

Switzerland’s decision to adopt a 65% greenhouse gas (GHG) reduction target by 2035 (compared to 1990) followed years of debate and revisions. The country first set climate goals under the Paris Agreement in 2015, aiming for a 50% cut by 2030. However, growing pressure from climate activists, scientific warnings, and international agreements pushed Switzerland to rethink its targets. After further negotiations, the government proposed a revised plan in 2023, balancing economic concerns with climate urgency. Finally, all this led to the updated 65% by 2035 goal, approved with support for measures like expanding renewables, electrifying transport, and funding carbon offset projects abroad. 

"By 2035, Switzerland should reduce its greenhouse gas emissions by at least 65 per cent compared to 1990 levels, and by 59 per cent on average between 2031 and 2035," said the Government of Switzerland in a statement.

Key aspects of the new reduction target of Switzerland

• The new target approved by the Federal Council of Switzerland is in line with the interim targets defined in the Climate and Innovation Act and matches the recommendations of the Intergovernmental Panel on Climate Change (IPCC). 
• To achieve the new target, Switzerland plans to cut emissions across key sectors like energy, transport, and industry by transitioning to renewable energy sources (like solar and hydropower), boosting energy efficiency in buildings, and encouraging cleaner transportation, such as electric vehicles. The country may also invest in carbon offset projects abroad to balance emissions that are harder to eliminate domestically.
• With the new reduction target announcement, Switzerland has announced amendments to its long-term climate strategy. This includes updates in the Climate and Innovation Act, revised CO2 Act and the Electricity Supply Act. 
• Switzerland will submit the new climate target of CO2 emission reductions with its updated climate strategy to the UN Framework Convention on Climate Change by 10 February. 

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