Switzerland Sets The Bar With Corporate Carbon Removal Milestone Targets

Swiss flag waving and tourists admire the peaks of Jungfrau mountain on a Mannlichen viewpoint, … [+] Bernese Oberland Switzerland

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Switzerland has always been synonymous with precision, and now it’s applying that ethos to climate action. The Climate and Innovation Act has set a groundbreaking precedent by mandating net-zero greenhouse gas emissions by 2050—not just at the national level but for all Swiss non-agricultural companies, irrespective of size. This month, the Act gained momentum with new guidance for corporate Net-Zero Roadmaps and a groundbreaking mandate to ramp up carbon removal efforts.

While climate legislation is no longer rare, Switzerland’s approach stands out for its granularity and ambition. The new guidelines not only ask companies to address their direct (Scope 1) and indirect (Scope 2) emissions but also encourage tackling Scope 3 emissions across their value chains. This proactive stance places Switzerland at the forefront of holding corporations accountable for their global carbon footprint.

Net-Zero Roadmaps: The Swiss Playbook for Corporate Climate Action

The Climate and Innovation Act requires companies to chart their path to net zero with detailed Net-Zero Roadmaps. While mandatory for companies seeking funding under the Act, these roadmaps are voluntary for others. However, the implications are clear: failing to craft a roadmap could leave companies at a competitive disadvantage, both in funding and public perception.

Central to these roadmaps is the concept of carbon removal. Companies must outline a development path for achieving “negative emissions” to offset residual emissions that are hard to eliminate by 2050. The guidance recommends starting this ramp-up before 2030 and setting milestone targets for 2030, 2035, 2040, and 2045. By doing so, Switzerland is not just mandating the end goal but also ensuring progress is made steadily along the way.

The emphasis on permanent carbon removal is another important distinction. While the Act doesn’t define permanence in detail, its inclusion signals Switzerland’s intent to anchor its climate ambitions in scientifically credible solutions like technology-based carbon removal such as direct air capture. Even more strikingly, companies are encouraged to go beyond net zero and aim for net-negative emissions—a concept that could redefine corporate responsibility in a warming world.

One of the most remarkable aspects of the Act is its implicit demand for Swiss companies to address emissions beyond national borders. The roadmap guidelines require adherence to the Greenhouse Gas Protocol, which means Scope 1 and 2 emissions from Swiss companies operating in other countries are included.

This provision could have profound implications for Swiss multinational corporations in high-emission sectors like cement, chemicals, and manufacturing. By effectively mandating global accountability, Switzerland has expanded the boundaries of climate regulation. Whether intentional or an unintended outcome of the guidelines, this approach could inspire other nations to hold their corporations accountable for emissions generated abroad.

Carbon Removal: Building the Industry of the Future

The Act’s insistence on a ramp-up of carbon dioxide removal (CDR) is a key strength. Without corporate and national investment in CDR technologies, the nascent industry cannot scale to meet future demands. By mandating incremental progress, Switzerland is helping create a viable market for carbon removal—a necessity for achieving global net-zero targets.

This kind of foresight is exactly what climate experts and frameworks like the Science-Based Targets Initiative (SBTi) have been advocating. Corporations and nations must be active participants in building the carbon removal industry. Switzerland’s leadership in this area could serve as a template for others.

Despite its ambitious framework, the Climate and Innovation Act currently lacks enforcement mechanisms. While companies are required to follow mandatory parts of the guidelines, there are no penalties for non-compliance. This could change in the future, as enforcement mechanisms will likely be introduced once the framework is firmly established.

For now, the Act relies on the goodwill of companies and their recognition of the competitive advantages of aligning with its guidance. But without legal ramifcations, there’s a risk that some corporations might treat the roadmap requirements as optional, undermining the Act’s transformative potential.

Switzerland’s Climate Act is not just a legislative achievement; it’s a vision for the future of corporate responsibility in a globalized world. By requiring companies to address emissions on a global scale and invest in carbon removal technologies, Switzerland is setting a new standard for climate action.

Other nations should take note, especially when it comes to setting milestone targets and encouraging global accountability. While the Act’s current enforcement may be limited, its broader message is clear: the era of narrow, nation-bound climate strategies is over. The path to a sustainable future requires countries and corporations alike to think globally and act decisively.

Switzerland’s Climate and Innovation Act is a bold experiment that could redefine what it means to be a responsible global corporate citizen. Let’s hope it inspires others to follow suit—because the climate crisis won’t wait, and neither should we.

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