Law on the Reduction of CO2 Emissions (CO2 Act)

The CO₂ Act (CO2-Gesetz) is Liechtenstein’s core national law for reducing greenhouse gas emissions, particularly carbon dioxide. Its primary purpose is to implement the treaty on environmental levies with Switzerland, reduce CO₂ emissions, limit other harmful environmental impacts, and encourage energy efficiency and greater use of renewable energy. The law establishes a CO₂ levy on the production and import of fossil fuels, defines obligations for emission reductions, and sets up mechanisms for companies to commit to long-term emission reductions in exchange for possible reimbursements of the levy. It also regulates emission limits for vehicles, and lays out provisions for reporting and penalties for non-compliance. Overall, it provides a comprehensive framework to align Liechtenstein’s climate policy with international commitments and promote the transition to a lower-carbon economy.The 2025 revision of the CO2 law includes an expansion of the negotiated reduction commitments (for exemption from the CO2 levy), opening the policy and measures to all companies is considered to have an impact under the WEM/WAM scenarios. Other measures mainly affect emissions under the transport sector (article 11).