KlG
Climate and Innovation Act
The Federal Act on Climate Protection Targets, Innovation and Strengthening Energy Security – known as the Climate and Innovation Act (KIG) for short – sets out Switzerland’s long-term climate policy framework and is relevant to businesses for two main reasons: it enshrines the net-zero target by 2050 in law and, at the same time, establishes specific support mechanisms for the decarbonisation of businesses and buildings. Those who understand the targets, funding mechanisms and requirements at an early stage can integrate climate protection specifically into their corporate strategy and plan investments more effectively.
Last updated: 09.06.2026
The Climate and Innovation Act at a glance
The Climate and Innovation Act (KlG) sets out the goal that Switzerland will achieve net-zero greenhouse gas emissions by 2050. Emissions are to be reduced as far as possible; only remaining, hard-to-avoid emissions are to be offset through negative-emission technologies or carbon capture and storage. The Act, together with the Climate Protection Ordinance (KlV), came into force on 1 January 2025. It is particularly important for businesses that the KlG not only sets out targets but also provides funding instruments for net-zero roadmaps and for novel technologies and processes.
The aim of the Climate and Innovation Act
The Climate and Energy Act aims to reduce Switzerland’s greenhouse gas emissions and make targeted use of carbon capture technologies. The Act aims to make Switzerland climate-neutral by 2050. It is also intended to facilitate adaptation to the impacts of climate change and mitigate those impacts.
The act came into force on 1 January 2025, along with the Climate Protection Ordinance (KlV).
The Climate Act enshrines Switzerland’s long-term climate targets in law, including the net-zero target by 2050. It obliges companies and Switzerland to reduce greenhouse gas emissions as much as possible and to offset any remaining emissions using carbon-capture technologies. Nationwide interim targets envisage a reduction of 75% by 2040 and 89% by 2050 (compared to 1990). In addition, there are specific interim targets for certain sectors.
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: Companies and industries must achieve net-zero emissions by 2050, taking into account both direct and indirect emissions. Direct emissions arise within the company (Scope 1), for example through the operation of its own production facilities or company vehicles. Indirect emissions include emissions resulting from the purchase and consumption of energy generated outside the company (Scope 2), for example through the purchase of electricity.
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.
Its relevance 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 companies in Switzerland are required to reduce their greenhouse gas emissions to net zero by 2050. This applies to both direct and indirect emissions, such as those resulting from production processes and energy consumption.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
Establish your greenhouse gas inventory and baseline
The first step is to assess where your company stands today. A robust greenhouse gas inventory is essential for accurately identifying emission sources, reduction opportunities and strategic areas for action. It is indispensable for developing a net-zero roadmap.
Assessing whether a net-zero roadmap is appropriate or necessary
Anyone wishing to access funding for innovative technologies or processes should assess at an early stage whether a net-zero roadmap is required and what criteria must be met. Even without funding, a roadmap is often useful for systematically planning investments, targets and measures.
Identifying eligible measures and strategic priorities
Once the current situation and the path to the target are clearer, specific measures should be prioritised. These include decarbonisation projects relating to processes and energy supply, potential funding applications, and integration into the company’s long-term strategy.
How our services support you
We support you in implementing the ESRS within your company in a practical way and with a clear project-based approach. Together, we determine which requirements are relevant for your company, how double materiality should be properly documented and how the regulatory requirements can be translated into an actionable data collection process and reporting structure.
We then support you with the substantive development, the establishment of robust processes and the preparation of a consistent, transparent report. Our goal is not only to meet regulatory requirements formally, but also to create real added value for management, transparency and positioning.
Our support services
Book a free initial consultation.
We invite you to acquaint yourself with us – with no obligation and tailored to your specific requirements.
FAQs about the KlG
Net zero means that all greenhouse gas emissions are reduced as much as possible. Only so-called ‘hard-to-avoid emissions’ are still permitted, and even these emissions must be offset through technologies or natural carbon sinks. The focus is therefore clearly on reduction before any offsetting takes place. Under the Climate Act, net zero currently applies only to Scope 1 and Scope 2. The Climate Act does not set out any requirements for the supply chain (Scope 3).
There is no fixed list. The classification is based on the state of the art and depends on the individual case. However, one thing is clear: examples such as oil-fired heating systems or diesel cars are not difficult to avoid and must therefore be completely phased out by 2050. Process emissions may be permitted if there are currently no viable alternatives for avoiding them. If in doubt, it is worth consulting the relevant authorities.
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, according to the Climate Act, the net-zero target involves maximising emissions reductions and offsetting any remaining ‘hard-to-avoid’ emissions through NETs.
It is important to note, however, that hard-to-avoid emissions will not be permitted in all sectors by 2050. Specifically, emissions in the buildings and transport sectors must be reduced by 100% by 2050. Consequently, no NETs are permitted in these sectors. By way of comparison: in the industrial sector, emissions must be reduced by 90 per cent. This implies that 10% of emissions are expected to be hard-to-avoid and must be offset by NETs.
A realistic, ideally linear pathway for negative emissions up to 2050 (with interim targets) should be set out in the roadmap.
Both technical and biological processes are permitted – e.g. CCS, BECCS, and bio-based storage in wood products or soils. It is important that they are recognised under the CO₂ Ordinance or the Climate Act.
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.
Different interim targets often apply to a company for different emission sources. For example, the interim targets for buildings apply to emissions from heating systems. These must therefore be reduced by 82% by 2040 and by 100% by 2050 (no offsetting via NET permitted). For process emissions within the company, the interim targets for industry apply. Here, the reduction must be 50% by 2040 and 90% by 2050. Up to 10% of emissions that are difficult to avoid are therefore expected here, which must be offset using NET.
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.