Achieving net zero by 2050 requires internationally coordinated approaches that facilitate new technologies and innovations.
As the challenges of climate change are global, coordinated approaches are needed at international level – and at the same time, everyone must make their contribution. The Swiss people recently voted 59.1% in favor of a clear verdict: Switzerland must achieve climate neutrality by 2050, releasing no more greenhouse gases into the atmosphere than it absorbs through its natural and technical reservoirs (net-zero target).
To achieve this goal, two measures are planned: companies in industry and commerce that use innovative technologies for climate-friendly production are to be subsidized to the tune of CHF 1.2 billion. The replacement of oil, gas and electric heating systems with climate-friendly heating systems is to be supported to the tune of CHF 2 billion.
The Scienceindustries association is also committed to the “yes” vote: its member companies from the chemicals, pharmaceuticals and life sciences sectors support the net-zero goal 2050 as a fundamental guideline, and speak out in favor of proactive and effective climate protection.
THE RIGHT FRAMEWORK CONDITIONS
The chemical and pharmaceutical industry wants to continue to make its contribution to achieving Switzerland’s climate objectives and remain a reliable partner. But for this to happen, the framework conditions must be right. As far as policy is concerned, this means thinking more holistically about the future of energy, enabling solution approaches based on a broad technology base, and focusing on the right behavioral economic incentives. In this way, we can achieve the ambitious energy and climate goals that Switzerland has set itself as effectively and efficiently as possible.
In international comparison, Switzerland already achieves above-average results in climate protection.
The chemical and pharmaceutical industry is already making a significant contribution to reducing greenhouse gas emissions – by optimizing processes in its own facilities and supply chains. What’s more, the chemical industry makes a substantial contribution to achieving climate objectives: without high-performance chemicals, there would be no photovoltaics, wind power or hydroelectric power. And without sophisticated insulation materials, energy efficiency in buildings would be an illusion. Products from the chemical industry are therefore an indispensable part of the energy transition.
CHOOSING PRAGMATIC PATHS
A secure energy supply at competitive costs is a key factor for Swiss industry. Security of supply must be guaranteed without interruption in the future, even if electricity and gas shortages loom on the horizon. Indeed, if energy becomes scarce in Switzerland, the Confederation and cantons take measures to limit consumption, with massive cuts for the production industry.
In this case, quota trading, for example, can be a pragmatic way of providing partial relief for the economy. In practical terms, this means that if a company reduces its energy purchases for cost reasons, it can sell the amount saved to other companies. In return, large energy consumers can acquire the consumption rights thus made available.
By the same token, overly conservative regulation of the use of emergency power systems could be fatal to industry in the event of an energy shortage. That’s why pragmatism and entrepreneurship are the watchwords here: emergency power systems can make an important contribution to the stability of the power grid and the reduction of gas consumption during a looming energy shortage.
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Source: Allnews| 13 Jul 2023 | Stephan Mumenthaler, Scienceindustries.
Stephan Mumenthaler has been Director of the Scienceindustries association since 2018, having previously been Head of Economic and Public Affairs at Novartis International in Basel. After earning a PhD in international economics at the University of Basel, he was a business consultant with Accenture in Zurich.
Scienceindustries is the Association of the Chemical, Pharmaceutical and Life Sciences Industries. It brings together over 250 companies active in this and other science-based industries in Switzerland. It is also an important member of economiesuisse, the umbrella association of the Swiss business community.