Emission reductions: the countries doing the ‘dirty work’ for Switzerland 

The introduction of more efficient and climate-friendly cookers is among the projects financed by industrialised states in developing countries to offset emissions. Keystone

Series 10 years Paris Agreement, Episode 6:

Switzerland has pioneered international carbon offsetting under the terms of the Paris Agreement. But the practice has generated fresh concerns and criticism.

Switzerland wants to reach net-zero emissions by 2050. It’s not alone – many other countries, including Australia, Canada, Brazil, the United Kingdom, and the European Union (EU) have the same goal.

Unlike most other nations on the planet, however, Switzerland aims to achieve this goal in large part by reducing emissions outside of its borders. The country is pioneering the use of a provision in the 2015 Paris Agreement to offset a portion of its domestic emissions.

The underlying idea is simple: Switzerland finances another country’s climate protection measures – for example to promote renewable energy or preserve forests. In return, Switzerland receives emission reduction certificates that it can use to meet its national climate targets. Overall carbon production is reduced, but not necessarily within Swiss borders.

In the series “10 Years of the Paris Agreement”, we highlight what has been done in terms of emissions, renewable energy, climate policies and climate research in Switzerland and around the world since 2015.

Switzerland has already partnered with about a dozen countries to reduce emissions, mainly in Africa and Latin America, and this strategy is a cornerstone of its national climate policyExternal link.

Japan is also committed to this system, and international emission offsetting is now among the climate policy instruments of the EU, despite its historical opposition. It is a central topic at the United Nations climate conference (COP30) currently taking place in Belém, Brazil. But this strategy is controversial.

That’s because, on the one hand, offsetting costs less money than many domestic measures and it contributes to sustainable development in developing countries. On the other hand, it risks discouraging domestic climate efforts. Scientific studies and media investigations also raise doubts about the real effectiveness of carbon offset projectsExternal link.

>> Carbon offsetting is always a major talking point at international climate conferences. Read more below:

Why does Switzerland offset some of its emissions abroad?

By ratifying the Paris Agreement, Switzerland committed to reducing its greenhouse gas emissions by 50% by 2030 compared to 1990 levels. The Federal CO₂ Act is the main tool for achieving this goal.

Parliament has decided that about one-third of emissions reductions can happen abroad. The main reason is that in some countries, cutting emissions can be more efficient and cost-effective than in Switzerland. For instance, the Swiss government already produces nearly all its electricity from sources that do not generate greenhouse gases, making further reductions in this area difficult.

Switzerland will need to offset around 34 million tonnes of CO₂ abroad by 2030, according to a statementExternal link by the federal government in February in response to a parliamentary inquiry. The total cost is estimated at around CHF1.2 billion ($1.5 billion). The same reduction domestically would cost at least three or four times more.

Géraldine Pflieger, professor of urban and environmental policy at the University of Geneva, believes that carbon offsets are necessary, especially in small countries like Switzerland, which has a significant carbon footprint due to imported emissions. However, the purchase of certificates should not replace domestic efforts, she told Swiss public radio, RTSExternal link.

How does Switzerland offset its emissions abroad?

Emission offsetting in Switzerland is primarily managed by the Klik Foundation, established by petrol station operators and fuel importers. By law, companies that import fossil fuels are required to finance environmental projects in Switzerland or abroad.

These projects aim to reduce emissions, avoid new emissions, or remove CO₂ already in the atmosphere. Examples include installing renewable heating systems, replacing fossil fuel vehicles with electric models, and building solar power plants.

Under article 6.2 of the Paris Agreement, projects carried out abroad generate transferable carbon credits known as ITMOs (Internationally Transferred Mitigation Outcomes). Each ITMO corresponds to one tonne of CO₂ reduced or avoided.

The Klik Foundation funds projects to purchase ITMOs on behalf of Switzerland using revenue from a fee on gasoline and diesel, currently set at 8 cents per litre.

Klik can only finance projects in countries that have signed a bilateral agreement with Switzerland. These agreements aim to ensure, among other things, that emission reductions abroad are counted only once – by Switzerland. The list of countries signing such agreements is growing.

>>The following video explains how CO₂ offsetting works:

Which countries offset Switzerland’s emissions?

In 2020, Switzerland and Peru became the first two nations to sign a climate protection deal under the Paris Agreement. Since then, the Swiss government has made similar partnerships with 13 other countries.

The most recent was signed in May with Kenya. Three additional countries will be announced during COP30 in Brazil, according to Swiss climate ambassador Felix Wertli.

However, the path from a bilateral agreement to the actual exchange of ITMOs is long and complex. Out of around 90 project ideas, the Federal Office for the Environment (FOEN) has so far approved only six. Another 28 are currently under evaluation.

Among the most advanced are an electric bus project in ThailandExternal link – the first in the world to generate ITMOs – and a clean cookstove initiative in GhanaExternal link. So far, these have allowed Switzerland to obtain, respectively, 1,916 and 11,733 ITMOs. Another 60,000 will follow by the end of the year, according to FOEN vice director Reto Burkard.

The ITMOs validated so far represent just 0.04% of the total emission reduction certificates the Swiss government aims to purchase by 2030. According to Klik, Switzerland could obtain an additional 20 million ITMOs by that date.

Which industrialised countries offset emissions abroad?

According to updated UN figuresExternal link, only eight developed or high-income countries – Switzerland, Sweden, Norway, Japan, South Korea, Singapore, Kuwait and United Arab Emirates – have signed bilateral agreements or memoranda of understanding to offset their emissions under Article 6.2. More than 50 countries have agreed to accept funding in exchange for offsets.

While Switzerland was the trailblazer in international offsets, Japan is more active. The country aims to offset 20 million tonnes of CO₂ abroad by 2030 and has outpaced Switzerland: it has signed bilateral agreements with 31 countries and is involved in 133 of the 163 environmental projects considered under the Paris Agreement.

The EU has historically opposed carbon offsetting and intends to meet its 2030 climate target exclusively through domestic measures. However, on November 5, the 27 EU member states reached a compromise for a limited use of this instrument after 2030.

Why is emission offsetting controversial?

Emissions reduced or avoided abroad must be verifiable, quantifiable, and permanent. They must not be counted by both countries, and they must meet a criterion called additionality. This means a climate project only counts for an offset if the emission reductions would not have happened without external funding.

Environmental and sustainable development organisations say many projects do not meet these criteria. For example, the electric buses in Thailand would have been put in place even without Swiss fundingExternal link, the groups say.

Independent analyses, such as a recent studyExternal link by researchers from Oxford and the University of Pennsylvania, also raise doubts about the effectiveness of emission offsetting strategies. The quality of carbon certificates – including those voluntarily purchased by individuals, companies, and public entities – is problematic, according to the study. Most widely used offset programs continue to greatly overestimate their probable climate impact, often by a factor of five to ten or more, the authors argue.

Federica Dossi of Carbon Market Watch, an NGO based in Brussels, says that the rules under Article 6.2 of the Paris Agreement are not robust enough to ensure transparent trading of high-quality credits. “Article 6.2 is based on the exchange of emissions between states without centralised oversight, leaving environmental integrity, transparency, and other aspects to the discretion of the participating countries,” she told Swissinfo in an email, adding that developed countries should adopt more ambitious decarbonisation measures within their own borders.

“They should not use Article 6 to meet their climate targets. They bear significant historical responsibility for emissions and must prioritise domestic action,” she said. Article 6 was designed to increase ambition in national climate goals – not replace domestic efforts, Dossi adds.

Swiss authorities say all offsetting projects must meet high standards and are regularly monitored. But the FOEN acknowledges that the impact on climate protection cannot always be proven with absolute certainty, since the emissions reductions are calculated in relation to a hypothetical future without the project.

“Switzerland is a forerunner in this field, and there are still some methodological issues to clarify. We have to verify requirements that no one has ever examined before. It’s a process of continuous learning, but we’re on the right track,” Reto Burkard says.
The Swiss government will present a report on the climate effectiveness of emission compensation by autumn 2026.

Edited by Gabe Bullard/vdv/sb

Series 10 years Paris Agreement

• Episode 1: 1. Climate experts in Switzerland: 1.5°C target is out of reach
• Episode 2: 2. Swissinfo climate scientist survey 2025
• Episode 3: 3. Will the sun still shine on renewable energy tomorrow? 
• Episode 4: 4. Switzerland’s climate researchers reveal the emotional side of science
• Episode 5: 5. We can still solve the climate crisis – here’s how 
• Episode 6: 6. Emission reductions: the countries doing the ‘dirty work’ for Switzerland