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As a result of the Kyoto Protocol and the Federal Act on the Reduction of Carbon Dioxide Emissions, the entire sustainable biofuel market (eg, bioethanol, biodiesel and biogas) is of increasing importance to Switzerland, write Anne-Catherine Imhoff and Michael Lips of Pestalozzi Attorneys at Law at International Law Office.

They add:

Pursuant to these regulations, by the end of 2010 Switzerland must lower its greenhouse gas emissions by 10% compared to 1990 levels. The adoption of biofuels is considered to be one way to support the achievement of this target and specific regulations in this regard have been introduced on an international and national level governing the market for sustainable biofuels. For example, on May 8, 2003, the EU Biofuels Directive was introduced to promote the use of biofuels and other renewable fuels for transport. Switzerland has used this directive as a guideline to enact supporting national provisions on the use of biofuels.

The article provides an overview of developments in Switzerland’s national biofuels policy, which includes the Federal Council recently deciding to remove certain legal obstacles with respect to bioethanol by amending the applicable statutes and administrative procedures.

The article also outlines ecological and social standards under Switzerland’s Mineral Oil Ordinance, which sets specific requirements for the production, import and storage of biofuels and their raw materials, and established preconditions for obtaining tax relief or exemptions.

The analysis also includes an overview of the process for receiving tax relief or exemption for biofuel suppliers.

More on the legal framework of the Swiss market for biofuels.