SWITZERLAND Law and Practice Contributed by: Nicolas Wehrli and Melanie Wilhelm, Loyens & Loeff
ing Switzerland’s traditionally cautious approach to broad FDI controls, the draft is narrower in scope than comparable regimes abroad. In September 2024, the National Council approved the Investment Screening Act, expanding its scope to include non-state investors and explicitly safeguard- ing essential goods and services, public order, and national security. It also proposed granting the Federal Council authority to extend authorisation requirements to additional companies. The draft is currently under review by the Council of States and is not expected to enter into force before 2026. For now, Switzerland remains a favourable destina- tion for foreign investors. Nonetheless, the evolving legislative landscape warrants close monitoring amid rising global protectionist trends. EU Artificial Intelligence Act Artificial intelligence (AI) is transforming Switzer- land’s energy and infrastructure sectors. It optimises energy production, storage, and smart grid manage- ment, while enabling intelligent traffic systems, urban planning, and resource-efficient operations. AI is increasingly applied to monitor infrastructure health and enhance building efficiency, contributing to more resilient and sustainable cities. Regulatory developments are progressing in parallel. The EU AI Act, in force since 1 August 2024, intro- duces strict requirements for high-risk and general- purpose AI systems. Due to its extraterritorial scope, Swiss companies must comply if their AI systems are marketed or used within the EU. Switzerland has adopted a sector-specific regulatory approach. In early 2025, the Federal Council reaf- firmed its commitment to innovation-friendly AI gov- ernance, emphasising consistency with existing laws and alignment with international frameworks such as the Council of Europe’s AI Convention. A formal regu- latory proposal is expected by 2026. Currently, AI in Switzerland is governed by existing legislation on data protection, non-discrimination, and personality rights. The 2020 federal guidelines con-
tinue to serve as the ethical foundation for AI use in public administration. See also 6.1 Significant Court Decisions or Legal Developments and the Switzerland Trends and Devel- opments chapter in this Guide. 1.2 Energy and Infrastructure Trends Over the past decade, Switzerland’s renewable energy sector has grown significantly, driven by commitments under the Paris Agreement, evolving ESG standards, and recent regulatory developments. 2050 Energy Strategy The revised Swiss Energy Act, approved by public vote in 2017, marked the launch of the 2050 Energy Strategy. Its objectives include: • promoting domestic renewable energy; • reducing reliance on imported fossil fuels; • improving energy efficiency and consumption; • phasing out nuclear energy; and • achieving net-zero emissions by 2050. Complementary federal and cantonal regulations have since been revised or are under development to sup- port these goals. Federal Act on Secure Electricity Supply On 9 June 2024, Swiss voters approved amendments to the Swiss Energy Act and Electricity Supply Act. Effective 1 January 2025, the new law: • enables rapid expansion of renewable energy (hydropower, solar, wind and biomass); • introduces funding instruments and regulatory frameworks for production, transport, storage and consumption; and • establishes a mandatory hydropower reserve. Paris Agreement Commitments In early 2025, the Federal Council submitted updated reduction targets: • 65% reduction in greenhouse gas (GHG) emissions by 2035 (vs 1990 levels); • 59% average reduction between 2031–2035; and
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