Swiss say no to tax on emissions

A Swiss law that would have taxed polluters for their carbon emissions, using the revenue to fund climate solutions, has been defeated in a binding national referendum. This is the first time a carbon tax has ever been put to a public vote in any western country. Its fate has already been dubbed a cautionary tale for all policymakers around the world looking to implement carbon pricing policies.

Urban Swiss regions including Geneva, Basel, and Zurich voted in favour of the so-called CO2 law. But 21 of 26 of the country’s more rural regions struck down the proposal. Switzerland has long cherished a reputation for being among the most environmentally aware countries.

Environment minister, Simonetta Sommaruga (pictured), said the defeat of the law would make it “very difficult” to achieve the country’s goal of slashing its greenhouse gases to half their 1990 levels by 2030. “This ‘no’ has repercussions,” she said.

The proposed law would have hiked taxes on petrol and diesel fuels, as well as heating oil and natural gas, and then used the funds to reduce public health insurance premiums and fund green technologies and building efficiency improvements.

Opponents to the law, which included the country’s far-right Swiss People’s Party, the oil lobby, car associations, and the country’s catering sector, had argued the policy would hurt the economy and disproportionately impact lower income households already battling to recover from the economic impacts of the Covid-19 crisis. The ‘No to CO2 law’ campaign also argued the landlocked Alpine nation was responsible for just 0.1 per cent of global emissions, and as such claimed the policy would have negligible impact on efforts to curb climate breakdown.

Switzerland puts all modifications to its federal laws that are questioned by more than 100,000 citizens, to a binding vote under its system of direct democracy.