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UBS, a leading Swiss bank, has released a new white paper titled “Downhill Climb” at the Building Bridges Conference 2024, outlining the challenges and opportunities for Switzerland in achieving its net-zero emissions goals. The paper highlights the progress made by Switzerland in reducing emissions by 24% since 1990 while doubling its economy. However, to stay on track for its net-zero goals, Switzerland must double its energy capacity and address seasonal supply challenges.
The report estimates that CHF 13 billion will be needed annually to achieve net-zero, which is about 2% of the country’s GDP. Private capital will play a critical role in funding the transition to a low-carbon economy, and the financial sector is well-positioned to provide loans, bonds, and equity investments for capital-intensive projects. The report also emphasizes the need for innovation, blended finance solutions, and active investor engagement to scale new technologies.
Switzerland’s transition to net-zero will require increasing electricity generation capacity from 27 GW to over 60 GW by 2050, despite 32% of current capacity going offline by 2034. This will involve scaling renewable energy, managing seasonal demand fluctuations, and accelerating carbon removal technologies for sectors that cannot fully decarbonize. The upcoming shutdown of nuclear reactors and rising energy demand add urgency to these measures.
The report also highlights the role of evolving regulatory frameworks, such as the 2025 Electricity Law, the CO2 Act, and the Climate and Innovation Act, in driving the transition. These measures will expand climate reporting requirements and align Switzerland with EU regulations.
While some sectors will thrive in the transition, others will face significant hurdles. The report emphasizes the need for sustained investment and collaboration across industries to ensure success. Switzerland has opportunities to lead in emerging green markets such as carbon capture, low-carbon cement, and other green technologies.
Overall, the report presents a mix of challenges and opportunities for Switzerland in its journey to net-zero. By scaling innovation, leveraging private capital, and aligning with robust regulations, Switzerland can continue its progress towards a low-carbon economy.