From 2006, a tax on CO2 be applied to fossil fuels in Switzerland An article introducing CO2 tax for Switzerland on fossil fuels: mechanisms and functioning ...
Keywords: CO2, tax, fuel, diesel, gasoline, fuel, carbon, pollution, greenhouse
The Swiss Federal Council has decided to introduce a tax on CO2 applicable to fuels. From 2006, 35 a fee of Swiss francs will be charged on every tonne of CO2 issued, corresponding to approximately 9 centimes per liter of heating oil, the statement of the Federal Department of Environment, Transport, Energy and Communications (DETEC).
The tax on CO2 applicable to fuels is an incentive tax whose proceeds will be redistributed to the population and the economy through health insurance.
Companies whose competitiveness could be undermined by the tax CO2 may ask to be exempted if they formally commit to reduce their emissions of CO2. With this possibility of exemption, the effect of the redistribution of the tax industry and craft services, which consume less energy, moderate, said the DETEC.
Moreover, at the discretion of the Federal Council, this tax has the advantage of exercise price incentives broader and longer term, which will continue to develop after 2012 in the prospect of further reductions. The consequences for the economy might even be slightly positive, he added in telling you that this tax will lower health costs and it will have positive effects on innovation and technological progress.
On the other hand, the Federal Council has chosen to test the effectiveness of the "climate penny" on fuel and based a voluntary basis. The law on CO2 in Switzerland already provides that economic circles and companies can voluntarily take measures to reduce their CO2 emissions in order to avoid the introduction of a systematic tax. Thus, a climate cent will be collected from the oil industry on each liter of imported fuel. The resulting revenue - 70 million Swiss francs - must be used partly to finance projects in third countries and thus to acquire emission certificates. In Switzerland, it is mainly about encouraging biofuels and taking measures in the field of fuels (buildings, infrastructure).
To implement this "climate penny", it is planned to create a foundation composed of 10 to 20 people (the Petroleum Union, Economiesuisse, Swissmem, the Swiss Society of Landowners and the Swiss Road Federation), which would choose the projects to finance.
The solution outlined by the Federal Council, however, raises a number of practical issues that need to be studied in more detail. DETEC is therefore in charge of preparing a proposal for the practical application and submit a message before the summer to the Federal Council.
The system must demonstrate its effectiveness before end 2007. Indeed, if the climate cent is not applied or does not deploy the necessary effects, it will extend the tax CO2 gasoline.