Freiburg, Germany (Platts)--28Jun2007

Switzerland is to introduce a nationwide levy on emissions from oil and
gas in January 2008 following the country's failure to reduce emissions by 6%
in 2006 compared with 1990 levels.

     Over the period, Switzerland managed to curb its emissions by 4.6%,
missing the target laid out by the country's parliament.

     From next year, a charge of SFr12 (Eur7.25, $9.76) per metric ton of CO2
emissions will be levied on hydrocarbon fuels, equivalent to around SFr0.03
per liter of oil or SFr 0.02.5 per cubic meter of gas. No charges will be
levied on emissions from wood and biomass as they are carbon neutral.

     Companies will be allowed to apply for an exemption of the charge if they
commit to reducing their emissions, and submit a proposal by September 1, 2007
to the environment ministry, detailing how they aim to cut their emissions.

     The levy is intended to contribute to CO2 emission reductions and help
Switzerland meet its Kyoto Protocol targets. The instrument creates incentives
for companies and population to use fossil fuels more efficiently as well as
invest in renewables.

     Should emissions not be sufficiently reduced, Switzerland plans to
gradually increase the levy in 2009 and 2010.

     From 2009, the charges would increase to SFr24/mt CO2 (or SFr0.06 per
liter of oil) if emissions in 2007 have fallen by less than 10% compared with
1990.

     From 2010 a charge of SFr36/mt CO2 (SFr 0.09 per liter of oil) would be
applied if emissions in 2008 have been curbed by less than 13.5% over 1990
levels.

     The levy on combustion fuels will run alongside Switzerland's voluntary
oil industry program known as the Klimarappen (Climate Cent) program for
transport fuels.

     Under the Kyoto Protocol, Switzerland must cut its greenhouse gas
emissions by 8% by 2012 compared with 1990 levels. As about 80% of GHG
emissions stem from CO2, the country has laid out a reduction target for that
gas of 10% by 2010 compared with 1990.