A strong start on the road to net zero
Switzerland is currently well on the way to achieving its climate targets. However, as a recently published study by UBS shows, there is still a lot to do.
Like most industrialized countries, Switzerland is pursuing an ambitious goal, which is to reduce its greenhouse gas emissions to net zero by 2050. The outlook is promising. The country is in a strong position from the outset, thanks to a number of advantages, some of which are due to political decisions and others to geographical circumstances. For example, Switzerland has the lowest carbon intensity of all industrialized countries and – in combination with an effective CO₂ levy mechanism – most of its domestic electricity generation is carbon-free, mainly through the use of hydropower. The country’s achievements to date are illustrated by one figure: By 2022, CO₂ emissions had fallen by 24 percent compared to 1990, the reference year for the official Swiss emissions targets, while the economy has doubled in size in the same period. As the “Downhill climb” study recently published by UBS states, Switzerland is currently well on the way to achieving its targets. However, there are still some major challenges to overcome. The transformation process is opening up new opportunities within the country, particularly for companies that develop innovative green technologies and bring them to market.
