The Swiss vote overwhelmingly in favor of carbon neutrality in 2050

The anxiety-provoking campaign of the radical right, playing on the fear of a country without electricity shivering with cold, ultimately failed to convince the population to vote against it. In an alpine country where the announced death of glaciers embodies the ravages of climate change, the Swiss voted by a large majority, Sunday, June 18, in favor of carbon neutrality by 2050.

The “yes” vote won 58.7% for the climate law, shortly after the polls closed at 10 a.m., according to projections by the Tamedia press group. All the major parties and the federal government had called for a “yes” vote, except for the first party in Switzerland, the Democratic Center Union (UDC), of the radical right.

In a second referendum, the Swiss also accepted the introduction of a 15% tax on large companies active abroad, according to estimates published from 10 a.m., with more than 79% of “yes”.

Encourage without forbidding

The climate bill plans to gradually reduce the consumption of oil and natural gas without, however, prohibiting it. At the same time, Switzerland will have to produce more renewable energies, such as hydropower and photovoltaics, and support more climate-friendly heating systems, such as heat pumps.

Switzerland and its mountain ecosystem are particularly affected by climate change. The situation of Swiss glaciers is dramatic, and they are doomed to disappear, according to specialists. In the Alps, above 1,500 meters, the rise in temperatures is comparable to that of the Arctic zone, with projections of +6 degrees Celsius by the end of the century.

The energy issue is a tricky one, in a country that depends 75% on imports for its needs, particularly oil and gas. A fragility brought to light in a dramatic way by the invasion of Ukraine by Russia.

There “Federal Act on Climate Protection Goals, Innovation and Strengthening Energy Security” aims to reduce this energy dependence on foreign countries while reducing greenhouse gas emissions, without bans or new taxes.

This text is in fact a counter-project to a popular initiative, known as the “glacier initiative”, which climate activists had tabled in 2019. It planned to ban the consumption of fossil fuels from 2050. The government and the Parliament felt that this was too radical and preferred to favor incentives, including financial ones, to reduce the consumption of fossil fuels as much as possible, without banning them.

Their plan provides up to 200 million Swiss francs (about the same amount in euros) every year for ten years to help homeowners switch to climate-friendly heating systems. Industries that invest in innovative technologies, for example capable of filtering CO₂ in the air, will also receive support.

The UDC ensures that the project, which it describes as “Electricity Waste Act”, will still result in a ban on fuel oil, gas, diesel and gasoline as energy sources, which will jeopardize energy security and drive up household electricity bills. This is not the first time that the SVP has opposed climate laws. In 2021, the party had narrowly failed a project to reduce greenhouse gas emissions.

Large Business Tax

Estimates anticipated a massive “yes” to the constitutional amendment to implement the Organization for Economic Co-operation and Development (OECD) and G20 plan on taxation, at a rate of at least 15%, large, internationally active business groups. The minimum taxation will apply to business groups with an annual turnover of at least €750 million.

Until now, most of the twenty-six Swiss cantons taxed companies low, in order to remain competitive despite high labor costs. The number of Swiss groups directly affected in Switzerland is estimated at a few hundred by the Federal Tax Administration, which estimates that revenue from the additional tax will be between 1 and 2.5 billion Swiss francs in the first year.