SWITZERLAND Trends and Developments Contributed by: Nicolas Wehrli and Melanie Wilhelm, Loyens & Loeff
• reduce dependency on imported fossil fuels and ensure supply security; • reduce energy consumption and emissions; • increase energy efficiency; • phase out nuclear energy; and • achieve net-zero emissions by 2050. Key focus areas include solar, wind, hydropower, and biomass. Hydropower remains Switzerland’s domi- nant renewable source, accounting for nearly 60% of electricity production. The country’s infrastructure includes run-of-the-river, reservoir, and pumped stor- age systems. Biomass energy – derived from wood, agricultural waste, and biogas – supports decentral- ised heat and electricity generation as well as waste reduction. Legislative framework supporting the 2050 Energy Strategy To implement the 2050 Energy Strategy, Switzerland has enacted or revised several key laws and regula- tions: • Swiss Energy Act – promotes efficient energy use and renewable energy development. Key provi- sions include: (a) support for solar, wind, hydropower, and bio- mass; (b) incentives for energy-saving measures; (c) subsidies for energy-efficient renovations and renewable installations; and (d) efficiency targets for buildings, industry, and appliances. • Swiss Electricity Supply Act – ensures a long-term, secure, and environmentally friendly electricity sup- ply. Key elements include market liberalisation for large consumers, non-discriminatory grid access, Swissgrid’s mandate for grid reliability, and rules for fair competition and consumer protection. • Swiss CO₂ Act – targets a 50% reduction in emis- sions by 2030 (compared to 1990 levels). Measures include a CO₂ tax on fossil fuels and incentives for reduction, participation in international emissions trading, and sector-specific targets for buildings, transport, and industry. • Swiss Climate and Innovation Act – aims for net- zero emissions by 2050, with interim targets of 75% by 2040 and 89% by 2041–2050. The Act
offers financial incentives for climate-friendly tech- nologies and allocates CHF200 million annually for ten years to support innovation. • SWEET Programme – the Swiss Energy Research for the Energy Transition (SWEET), managed by the Swiss Federal Office of Energy (SFOE), funds inter- disciplinary research on energy efficiency, renewa- bles, storage, and grid security. In August 2024, the RECIPE consortium, led by the Federal Institute of Technology (ETH – Swiss abbreviation) Zurich, received funding to assess infrastructure risks and resilience strategies. Other legislative developments • EU Electricity Agreement – in March 2024, the Federal Council approved negotiations with the EU on electricity market integration. A comprehensive agreement was concluded in December 2024, liberalising Switzerland’s electricity market and aligning regulations with EU standards. The agree- ment was approved in May 2025, with consulta- tions running until October 2025 and ratification expected in 2026 or 2027. • Nuclear energy policy shift – in response to the “Electricity for everyone at all times” initiative, the Federal Council proposed an indirect counter- proposal to repeal the ban on new nuclear power plants via amendments to the Swiss Nuclear Energy Act. The consultation concluded in April 2025 with input from 262 stakeholders. • Foreign direct investment (FDI) screening – Swit- zerland currently lacks a general FDI screening regime but regulates foreign investment in sensitive sectors such as banking, telecoms, and nuclear energy. On 15 December 2023, the Federal Council proposed legislation requiring approval for acquisi- tions by foreign state-controlled investors in criti- cal infrastructure. In September 2024, the Swiss National Council extended the scope to include non-state investors and essential goods/services. The draft is under review by the Council of States and is expected to take effect in 2026. • EU AI Act – effective from 1 August 2024, the EU AI Act introduces a risk-based framework for AI systems and applies extraterritorially to Swiss companies operating in or affecting the EU mar- ket. Switzerland has opted not to adopt similar legislation but is preparing a regulatory approach
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