What the Climate and Innovation Act (Klima- und Innovationsgesetz, KlG) means for Swiss Companies

Over 1 billion Swiss francs available in funding pool to promote innovative decarbonization and negative emission projects | Official application registration opened on June 1st

Read more in our expert blog from Luzia Bieri, David Moosmann, Jonathan Schwieger, Federico Cavallucci, and Felix Zaussinger

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Switzerland has set itself an ambitious climate goal: Net Zero by 2050, for Switzerland overall and for each individual company registered there. This goal covers Scope 1 and 2 emissions (including all direct emissions a company can control as well as indirect emissions from energy consumption). Reaching this target requires a gradual phase-out of fossil fuels in buildings, transport, and industry.

Under the Climate and Innovation Act (KlG), Switzerland provides companies with targeted support for the implementation of innovative emission reduction projects and the use of negative emission technologies (NET). Funding of up to 1.2 billion Swiss francs is available for this purpose. Applications for funding can be registered as of June 1, 2025. In this blog, we examine the funding opportunities that are now available to companies and what is particularly important regarding the KlG funding program.

Attractive Funding Opportunities for Companies

Under the KlG and the associated Climate Protection Ordinance (KlV), funding is available for pilot plants and cutting-edge technologies that aim to decarbonize industrial processes.

What makes this funding so attractive is that it covers a share of both investment costs and operational costs. This can serve as a powerful lever to enable the implementation of innovative, capital-intensive climate protection projects. The maximum funding rate is 50%. 

Applications for funding can be submitted either directly or as part of thematic calls for proposals.

Direct Submissions 

Companies as well as sector-specific business associations can apply for financial support for innovative projects aimed at reducing greenhouse gas emissions or storing carbon dioxide. Such applications require the submission of a net-zero roadmap that documents the decarbonization targets and the corresponding measures. Applications which fall under the “direct submissions” category can be submitted at will and are not subject to specific deadlines.

Thematic Calls for Proposals

Alternatively, there are also thematic calls for proposals on specific climate-relevant topics or technologies. Companies and sector-specific associations can apply for funding within the framework of these calls.

SMEs Can Profit from Collaborations

Small and medium-sized enterprises (SMEs) also have opportunities under the KlG. SMEs can either band together and submit a joint funding application, or, through existing sector-specific business associations, submit a funding application for a sector program. A key prerequisite is the development of a net zero roadmap or a sector roadmap.

Net-Zero Roadmap: Strategic Climate Planning as a Prerequisite for Funding 

Companies should definitely tackle the decarbonization of their business processes early and comprehensively, as a detailed net-zero roadmap is a prerequisite for access to the funding opportunities of the KlG. In addition, it can also serve as a transition plan in accordance with Art. 3 of the Ordinance on Reporting on Climate Matters and as a decarbonization plan for companies with an emission reduction obligation (in accordance with Art. 31a of the CO2 Act). The net zero roadmap is therefore of vital in several respects.

Switzerland is the one of the first countries to anchor a NET (Negative Emissions Technologies) deployment pathway into law. Negative emissions can either be generated directly within the company or obtained through the purchase of carbon credits in accordance with the CO2 Act.

A Net Zero Roadmap must include:

1. A detailed greenhouse gas inventory covering Scope 1 and 2 emissions (Scope 3 is optional)

2. An analysis of current facilities and processes

3. An analysis of technical solutions that reduce greenhouse gas emissions or generate negative emissions

4. An emission reduction pathway until 2050, with interim targets for 2030 and 2040

5. Pathway for negative emissions (generated within companies or Swiss attestations for negative emissions according to the CO2 Act)

6. Action plan with emission reduction measures and NET projects that enable compliance with the emission reduction pathway and the negative emission pathway, respectively.

Simply said: Act Now – Moving quickly pays off!

Act fast: Companies interested in securing funding under the KlG should not wait. Although the funding pool is currently well endowed with CHF 1.2 billion, it is already clear that competition for funding will be intense. Keep in mind that funding is available for a maximum of six years. The application registration period already opened on June 1, 2025.

With more than 25 years of experience, First Climate is one of the leading companies in Switzerland and worldwide when it comes to carbon accounting and the development of certified climate protection projects.

We offer companies our expertise in designing net-zero roadmaps, creating and advising on sectoral programs, as well as developing pathways for negative emission technologies (NET) and related NET projects.

Our experts are officially listed on the Net Zero Roadmap Consultants – Swiss Federal Office of Energy (SFOE):

https://www.bfe.admin.ch/bfe/de/home/foerderung/dekarbonisierung/fahrplaene-netto-null.html 

Plan a funding project with First Climate now

First Climate's Team of Experts for the Climate and Innovation Act (Klima- und Innovationsgesetz, or KlG)

Luzia Bieri Head of Compliance Switzerland and Carbon Standards

Jonathan Schwieger Head of Climate Strategies

David Moosmann Senior Advisor Compliance Switzerland and Carbon Standards

Federico Cavallucci Senior Consultant for Corporate Climate Strategies

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First Climate’s Services for your Corporate Net Zero Journey under the KlG  

Designing Net Zero Roadmaps

With over 25 years of experience, First Climate is a leading provider in Switzerland and worldwide for corporate carbon footprinting, climate target setting and strategy development, and the implementation of certified climate projects. We offer companies extensive expertise in the creation of net zero roadmaps.

Our experts are officially listed on the Swiss Federal Office of Energy’s “Net-Zero Roadmap Consultants” register: https://www.bfe.admin.ch/bfe/de/home/foerderung/dekarbonisierung/fahrplaene-netto-null.html

Sector-Specific Programs

First Climate supports sector-specific associations in managing sectoral programs under the KlG. We have more than 10 years of experience of developing, auditing, and managing CO₂ offset programs under the Swiss CO₂ Act. We have successfully developed programs promoting emission reduction measures through innovative fertilizers or avoidance strategies related to landfill gas destruction. 

Developing NET Deployment Pathways and NET Projects

Emissions that are hard to abate should be counterbalanced by equivalent climate benefits through the implementation or financing of suitable NET projects according to a fixed roadmap. We support companies in developing a negative emissions pathway, as well as project development and sourcing national and international carbon credits. We are well versed in the development of CO₂ reduction projects in accordance with Article 5 of the CO₂ Act as well as in the development of international climate projects in accordance with Article 6 of the Paris Agreement.