KIG

Climate and Innovation Act

The Climate and Innovation Act (KIG)  requires businesses to intensify their efforts in climate protection and innovation. We are here to help you understand and implement the requirements of the KIG. With targeted information, we offer tailored solutions to strengthen energy security and enable sustainable business practices.

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What is the Climate and Innovation Act (KIG)?

The KIG aims to significantly reduce Switzerland’s greenhouse gas emissions and promote the targeted use of negative emission technologies. It also supports adaptation to the effects of climate change and works to mitigate its impact. Furthermore, the law aligns financial flows with low-emission and climate-resilient development. The act came into force on 1 January 2025, along with the Climate Protection Ordinance (KlV).

The KIG legally enshrines Switzerland’s long-term climate goals, including the net-zero target by 2050. It obliges both businesses and the country to maximise the reduction of greenhouse gas emissions and offset any remaining emissions through negative emission technologies. Interim targets include a 75% reduction by 2040 and 89% by 2050, compared to 1990 levels.

The Climate Protection Ordinance specifies the funding instruments outlined in the act and regulates specific measures for industry, the building sector, adaptation to climate change, and aligning financial flows with climate goals.

Key Areas of the KIG are:

  • Reduction of greenhouse gas emissions: Businesses and industries must achieve net-zero emissions by 2050, taking into account both direct and indirect emissions. Direct emissions originate within the company, such as emissions from production facilities or company-owned vehicles (Scope 1). Indirect emissions include those generated outside the company, such as purchased electricity (Scope 2). The government supports the development of emission reduction roadmaps by providing standards, resources, and advisory services until 2029, helping companies transition toward climate neutrality.

  • Promotion of innovation and technologies: By 2030, funding is available for technologies and processes that reduce greenhouse gas emissions or remove and store CO₂. Businesses must develop a net-zero roadmap to qualify for funding, which will be allocated through existing funding instruments. Important difference: A subsidised roadmap from the former EnergieSchweiz programme does not automatically meet the stricter requirements of a net-zero roadmap under the KIG. Existing roadmaps must therefore be reviewed and adjusted if necessary.

  • Incentive programme for climate-friendly buildings: This programme promotes the replacement of fossil fuel heating systems with renewable energy solutions and supports energy efficiency measures. It complements existing programmes like the buildings programme and provides financial incentives to make the building sector more sustainable.

  • Climate-friendly financial flows: The ordinance establishes voluntary climate tests for the financial sector and strengthens its role in achieving climate goals by promoting investments in low-emission, climate-resilient projects.

  • Network for climate change adaptation: This network fosters collaboration between federal, cantonal, and municipal authorities, as well as businesses and academia, to mitigate climate risks and enhance resilience to climate change.

Why is the KIG relevant to your business?

Compliance with these legal requirements is not only an obligation but also an opportunity to remain competitive, reduce costs, and establish sustainable business practices.

The key areas of relevance include:

  • Commitment to net-zero emissions
    All businesses in Switzerland are required to achieve net-zero emissions by 2050. This includes reducing both direct and indirect emissions from production processes, energy consumption, and supply chains. The government supports the development of roadmaps that outline concrete measures to achieve net-zero.

  • Opportunities through funding

    • Technologies and processes to reduce emissions: The government provides financial support for the adoption of innovative, climate-friendly technologies. A net-zero roadmap is required to apply for these funds.
    • Energy efficiency projects in the building sector: Financial incentives are available to promote the replacement of fossil fuel heating systems and implement energy efficiency measures. This programme is time-limited and complements existing initiatives.

Your Next Steps

  1. CO₂ Assessment: Measure your company’s carbon footprint and identify areas for improvement.
  2. Implement Measures: Leverage our expertise to develop and execute effective sustainability measures efficiently.
  3. Apply for funding: Take advantage of government funding programmes for your sustainability projects. We assist you throughout the application process.
  4. Develop a Sustainability Strategy: Integrate climate action into your long-term business strategy to stay competitive, meet regulations, and mitigate risks..

Stay competitive and act proactively. Request a non-binding consultation to learn how you can benefit from the KIG program. Together, we’ll make your business fit for a sustainable future.

Contact us today!

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FAQs about the KlG

Net zero means that all greenhouse gas emissions are reduced as much as possible and any remaining emissions are offset by technologies or natural carbon reservoirs. Firstly, direct emissions (Scope 1) and emissions from energy consumption (Scope 2) are reduced. Indirect emissions along the supply chain (Scope 3) are then taken into account. The focus is on reduction before offsetting takes place.

A roadmap is primarily used for orientation and monitoring. Interim targets (e.g. for 2030 or 2040) are not legally binding and compliance with them is not sanctioned. They only become binding if they are part of a subsidised measure – in this case, non-compliance can lead to a (partial) reclaim of the financial aid.

Yes, the net-zero target according to the KlG includes the maximum reduction of emissions and the offsetting of remaining emissions through NET. A realistic, ideally linear build-up path of negative emissions by 2050 (with interim targets) should be presented in the roadmap.

Both technical and biological processes are permitted – e.g. CCS, BECCS, bio-based storage in wood products or soils. It is important that they are recognised in accordance with the CO₂ Ordinance or KlV. Traditional afforestation alone does not count as a novel NET in the context of funding.

There is no fixed list. The categorisation is based on the state of the art and depends on the individual case. Process emissions may be permitted if there are currently no practicable avoidance alternatives. If in doubt, it is worth consulting the relevant authorities.

The reference values of the KlG (e.g. -75% by 2040) apply to Switzerland as a whole. Companies are guided by sector-specific target paths (e.g. buildings, industry, transport). Intermediate targets in the roadmap should be planned realistically and linearly, but cannot be sanctioned.

The KlG is a framework law. Implementation and compliance are monitored indirectly via other laws (e.g. the CO₂ Act) and bodies such as the Swiss Federal Audit Office. If the achievement of objectives is jeopardised, adjustments to the legal situation are possible.