MARKET AND DEVELOPMENT

The share of biogenic fuels in Switzerland was only 0.17 % in 2010. In 2019, this value rose to 6.7 % for diesel and 2.6 % for petrol sales.

With the new CO₂ Act, the compensation obligation of fuel importers will increase to 15 % for the time being from 2022. This will lead to a further increase in sales of sustainable, renewable fuels.

Since 1 January 2013, only biogenic fuels based on waste and residues have been exempt from mineral oil tax. The Directorate General of Customs (BAZG) has continuously tightened its practice in granting tax relief over the past seven years. As a result of the revised CO₂ Act, which is expected to come into force on 1.1.2025,

• tax relief will also be granted from 1.1.2025;

• advanced biofuels" are also accepted in Switzerland, analogous to the EU's Renewable Energy Directive (RED II).

BIODIESEL MARKET SWITZERLAND

Until 2012, domestic producers as well as importers of biodiesel sold their product at an
The majority of these are sold to operators of truck fleets and construction machinery. Pure biodiesel (B100) has practically disappeared at the filling station; the business was not profitable in terms of volume. Imports increased markedly from 2013 onwards. In the meantime, many petrol stations sell B7 - mineral oil diesel with a non-declarable proportion of 7 % biodiesel.

BIOETHANOL MARKET SWITZERLAND

Bioethanol is available in Switzerland as an admixture to unleaded 95 petrol or as E85. Blends of up to 5% are not subject to declaration according to SN EN 228. E85 consists of 85 % bioethanol and 15 % unleaded 95 petrol. The admixture of 15 % petrol is necessary to improve the cold start ability. E85 is only suitable for flex-fuel vehicles (FFV). Throughout Switzerland, around 50 filling stations offer E85, with a declining trend due to lack of demand.

The - exclusively imported - quantities of bioethanol have also risen sharply since 2014. The significantly lower share of renewable components in petrol is due to the fact that the current CO₂ Act, which is valid until 31.12.2024, does not allow for mass balancing, as is customary for electricity and gas. Providing evidence of the minimum environmental and social requirements for bioethanol is therefore much more difficult than for biodiesel. The law does require acceptance of the technical standards. However, the authorities are not prepared to accept mass balancing, which is unavoidable for technical reasons, even if only in clearly defined sub-areas.

Bioethanol: Market opening full of obstacles, FDF (2010)