Economic advice, method- and data-based

The supply of and demand for biomethane is developing positively in Switzerland. This is thanks to private initiatives and support from the gas industry. There is great potential in the use of livestock manure, although Switzerland faces additional challenges with its rather small-scale agriculture. The current version of the new CO₂ Ordinance (CO₂-Verordnung), which is still being consulted on until October 17, will hardly provide any additional impetus.According to our hydrogen marginal cost index HySuiX, the production costs for green hydrogen (H₂) in Switzerland have recently fallen. However, shortly before the planned publication of the Swiss government's hydrogen strategy, the mood in the industry remains cautious, although there important progress in regions close to the border.These topics are covered in the new Barometer, published by the Swiss Gas Industry Association in collaboration with E-Bridge Consulting and Polynomics. The Barometer is published twice a year and available in German and French. You can receive future issues by registering here: https://gazenergie.ch/de/h2-barometer.

The Federal Council is having the Federal Department of Economic Affairs, Education and Research (EAER) examine options for institutional reforms of the Swiss competition authorities. Based on the recommendations of the legal expert commission «Reform Wettbewerbsbehörden», it has instructed the EAER to prepare a consultation process for a reform of the competition authorities by mid-2025. In view of the planned consultation process, the ‘Think Tank Fairer Wettbewerb’ has commissioned a study on the institutional reform of Swiss competition authorities from an economic perspective. On the one hand, the study sharpens the understanding of competition and distortion of competition from an economic perspective, and on the other hand, it examines Swiss competition authorities from a political economy perspective and identifies opportunities for improvement in organisation and procedures.

In order to achieve the goal of net-zero CO₂ emissions by 2050, the capture and storage of difficult-to-avoid emissions (CCS) at point sources will be required in future. According to the Federal Council, CCS technology is to be scaled up from 2031 so that 7 Mt CO₂-eq can be captured from industry and waste incineration plants (WIPs) by 2050. The ramp-up of these new CCS value chains is associated with various risks that need to be addressed in the regulatory framework. As it is more favourable in the medium term from the perspective of industrial emitters to acquire the price for emissions via the purchase of emission rights than to rely on CCS, funding is required for the ramp-up of these value chains.