The use of carbon dioxide removal (CDR) to counterbalance unavoidable and hard-to-abate residual emissions is required if net zero emission targets are to be achieved¹. A considerable scale-up of actions is necessary to close the gap between existing initiatives and the need to meet the international climate targets to limit the negative implications of climate change. New regulations in Switzerland and updates to Science Based Targets initiative (SBTi) target setting standards are paving the way for companies to develop their carbon removal strategies now and enable them to fully meet their reduction targets.

Switzerland is committed to reaching net zero by 2050. The new Swiss Climate Protection and Innovation Act explicitly supports CDR technologies², creating new opportunities, requirements, and incentives for both credit buyers and project developers. Similarly, the SBTi has updated its guidance³, urging early integration of CDR into corporate net zero strategies, making it an immediate planning priority. This shift in global standards underscores the urgency of incorporating CDR⁴ into corporate climate action plans.

As companies purchase CDR offsets, it is important that they understand the different CDR technologies to future-proof their climate commitments and to ensure they are securing high-integrity removal credits, which are essential for a credible transition plan. For developers, the regulatory shift opens new market demand and funding pathways for high-quality CDR projects, especially in Switzerland’s innovation-driven context.

Switzerland has become a CDR innovation hub, boasting a range of solutions from nature-based to technology-based. Among the many project developers are Swiss waste incineration plants. Biogenic waste, such as plant residues or wood materials, absorbs carbon from the atmosphere through photosynthesis. When incinerated and the carbon is captured and stored, this atmospheric carbon is permanently removed, resulting in negative emissions. For buyers to finance and credibly account for negative emissions, the negative emission technology must be certified as high-integrity CDR offsets.

While carbon credits are traded in regulated compliance markets, carbon offsets from CDR operate in voluntary markets, requiring independent verification. Certification bodies such as Gold Standard, Verra, and puro.earth evaluate crucial quality dimensions like durability, additionality, and ease of monitoring, reporting, and verification (MRV). These certification bodies contribute to the integrity of CDR offsets.

Our analysis indicates that Swiss buyers prioritise investing in high-quality carbon offsets from recognised certification bodies, adhering to stringent risk standards. Their focus is on fostering the CDR market by supporting start-ups with long-term offtake agreements and innovation, thereby facilitating the scale-up of CDR technologies.

Recognising these dynamics, Deloitte helps project developers scale their impact and access opportunities while supporting buyers with tailored strategies and insights to effectively navigate the negative emissions ecosystem, along with providing due diligence support for investment decisions.

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Contributors

We are grateful to Dr. Ramona Achermann for her valuable contribution to this report.