National framework:
Legal obligation for fuel importers to offset emissions under the Swiss CO₂ Act, since 2013: a certain percentage of transport emissions must be offset by climate protection activities. The exact quota and detailed provisions are regulated by the Swiss CO₂ Ordinance. Roughly estimated, around 40 million tonnes of CO₂ will have to be offset by 2030. The Climate Protection and CO₂ Offsetting Foundation was established in 2012 by the Swiss Petroleum Association (now Avenergy Suisse) with the task of fulfilling the industry's legal obligation to provide a carbon offset for motor fuel. To this end, the KliK Foundation finances climate protection activities that have proof of a reduction in greenhouse gases.

International framework:
Paris Agreement, 2015: Under the Paris Agreement, Switzerland has made a commitment to reducing its greenhouse gas emissions by at least 50 per cent by 2030 compared to 1990 levels. Since 2021, Article 6 of the PA has also allowed Switzerland to finance climate protection activities abroad and count them towards its own Swiss climate target.

For international activities:
Mitigation activities under Article 6.2 of the Paris Agreement are subject to the requirements of the Paris Agreement and the bilateral climate agreements between Switzerland and its partner countries. Further regulations are based on the Swiss CO₂ Act, which is specified in more detail in the CO₂ Ordinance, as well as the framework conditions for the carbon market of the respective partner countries. Finally, the KliK Foundation has established further standards on integrity and credibility for the purchase of internationally transferred mitigation outcomes (ITMOs).

Watch our explanatory video on the carbon offset mechanism in a national and international context here.

For projects in Switzerland: additionality (financially unviable, additional emission reductions), state of the art, principle of conservatism (calculation methods and assumptions should not lead to an overestimation of emission reductions); for carbon sinks, the principle of durability applies (at least 30 years of storage capacity)

For projects abroad, the following is required: a bilateral agreement between Switzerland and the partner country, the activity must make a contribution to sustainable development in the partner country, there is a ‘corresponding adjustment’ (Switzerland can count the reduction achieved in the partner country towards its emission target without double counting, because the partner country must record the reduction in its greenhouse gas balance as an emission under the bilateral climate agreement), and a delimitation from the nationally determined contribution (NDC; the activity must reduce additional emissions beyond the specified NDC).

Greenhouse gas mitigation activities that can be carried out under a bilateral agreement between Switzerland and a partner country under Article 6 of the Paris Agreement must meet the highest quality and integrity criteria. Quality refers to technical and scientific standards, while integrity refers to environmental standards and social aspects during the implementation phase. In addition, for a climate protection activity to be considered high-quality, it must be clearly demonstrated that the measure is being executed in addition to the partner country's own climate protection efforts and is only financially viable with support under Article 6.

Clear eligibility criteria and the highest requirements for mitigation activities on the part of the Federal Office for the Environment (FOEN) and the respective partner country contribute to the implementation of high-quality A6.2 activities. In the development phase of an Article 6 activity, there is a strong focus on the content and methodological presentation of its effectiveness. The development of an activity requires extensive studies and associated analyses to reflect the emission values of an activity BEFORE the measure to mitigate climate change is implemented. The technology to be used must be state of the art. The methodology for measurement of emission reductions must be clear, verifiable and consistent.

In addition, a stable and sustainable activity must be tailored to the needs of the population, including the Sustainable Development Goals (SDGs). In this way, Mitigation activities have a measurable, long-term positive impact on the environment and society.

All these criteria must be set out in a Mitigation Activity Design Document (MADD). The MADD is carefully reviewed by an independent expert body, the external validator, before being validated and authorised by the authorities in Switzerland and the partner country. Quality and integrity are ensured through monitoring, reporting and verification by an independent validation body – through the verification of the data defined in the MADD, which is measured and evaluated annually. During this process, the actual measured amount of emission reductions is also submitted and verified.

For projects in Switzerland:
The Compensation Office of the Federal Office for the Environment (FOEN) is responsible for evaluating the suitability of a project or programme. The application for authorisation of a project or programme to reduce emissions includes the project or programme description validated by a validation and verification body approved by the FOEN, including the economic feasibility analysis, the calculation method for determining the emission reductions in the form of a calculation table, the monitoring concept and the validation report.

For projects abroad:
After validation by an independent validation body, each MADD is reviewed by the Federal Office for the Environment (FOEN) and the respective partner country to ensure that it is optimally suited to the intended activity. Through authorisation, the two countries involved confirm the additionality, quality and highest integrity of the measure to mitigate climate change. Before an activity is authorised, there may be several rounds of questions from representatives of the partner countries.

The MADD and the annual verification documents are published on the website of the Federal Office for the Environment (FOEN) to ensure the necessary transparency.

For domestic projects:
Monitoring generally begins with the start of impact of the project within the framework of the supported programme. It must be executed in accordance with the monitoring concept from the validated project or programme description. The emission reductions calculated from the measured values are recorded in the monitoring report. The monitoring report for the project or programme is then reviewed by a validator and verifier (VV) approved by the FOEN. This must be a different VV from the one commissioned to carry out the validation.

For projects abroad:
In accordance with the bilateral climate agreements and the Swiss CO₂ Ordinance, the MADD submitted for approval must contain a detailed monitoring plan. This plan specifies how the monitoring data collected retrospectively is converted into emission reductions. It describes the measurement, reporting and verification of the data monitored during the crediting periods. Where possible, the monitoring data is recorded digitally to improve accessibility and data quality.

The verification of the measured data is executed by another independent validator, and all documents are checked for accuracy by both partner countries. These measures ensure that the reduction results are genuine, that the activity supports the country in achieving its national climate targets, and that overselling is avoided.

Ultimately, only the actual measured and verified emission reductions count when purchasing ITMOs.

There are standardised methods that project developers can use to achieve a high level of integrity in their activities. Each type of method provides information on the measurement, calculation and monitoring of emission reductions, including methodological parameters such as the fNRB (see below). ‘State-of-the-art’ refers to the most advanced, efficient and innovative solutions currently available for climate-friendly technologies. These technologies take into account the latest scientific findings, technical advances and practical applications for reducing greenhouse gas emissions.

The KliK Foundation has set itself the goal of developing a broad portfolio and supporting a wide range of innovative, scalable, environmentally sustainable and cost-effective mitigation activities that address both immediate and long-term challenges.

The fraction of non-renewable biomass (fNRB) is a parameter used to calculate emission reductions in biomass to energy activities, e.g. in improved cookstove activities. This parameter indicates the proportion of woody biomass that is used and does not regrow in the absence of an activity. It is therefore included in emission reduction calculations.

The methodology for an improved cookstove activity includes an fNRB value Switzerland has agreed with its partner countries on a fixed reference value of fNRB 0.3, provided that no newer scientific study, accepted by both partners, suggests a different value.

Until the data is reassessed by two partner countries, based on new research data, the activity follows the default parameters and defined regulations. Any hypothetical best-case fNRB value described in a MADD, serves as an upper limit for calculations in case that a new and higher fNRB value is defined by the two partner countries. This is to avoid delays caused by a reauthorisation of a MADD.

Additionally, it is important to note that other conservancy factors will be implemented in activities that put a fNRB measure in their methodology to ensure credible outcomes. These measures further reinforce the activity’s integrity and alignment with international standards.

With the A6.2 mechanism, partner countries aim to implement additional mitigation activities that go beyond their nationally determined contributions (NDCs). A6.2 activities support these countries' transition to sustainable energy production and energy efficiency measures. A6.2 activities therefore not only reduce greenhouse gas emissions and support the transition to net zero, but also lead to technology transfer, job creation, foreign direct investment and contributions to the SDGs.

In the activity documents, the owners define social and environmental aspects that are to be improved. The implementation of the activity is reviewed and evaluated in the annual verification reports. Green investments through A6.2 offer the private sector in the respective country the opportunity to participate in mitigation activities that would otherwise be unaffordable.

A6.2 activities must provide proof, measure and regularly report on a range of SDGs:

• Environmental benefits: improving air, soil and water quality; raising biodiversity.

• Social benefits: poverty reduction, improved health, greater gender equality, job creation, technology transfer, etc.

• Incentives: increased ambition for the implementation of own innovative measures for climate protection.

The KliK Foundation is committed to transparent communication and the provision of factual and comprehensible information. We are available to answer questions and provide background information to enable well-founded and comprehensive reporting on our activities at home and abroad.

In the case of international activities, countries using the A6.2 mechanism undertake to ensure transparency and to report both emission reductions and corresponding adjustments to the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC).

The issuance of each verified and recognised quantity of ITMOs in the emissions trading register of the acquiring organisation or company – including serial numbers and documentation of the corresponding adjustment – ensures transparency and public traceability. Switzerland uses a central register in which all international certificates for mitigation measures are recorded. Under the bilateral climate agreement, the partner country must record the reduction performance as emissions in its greenhouse gas balance. This procedure makes it possible to track emission reductions, avoid double counting and rule out incorrect accounting or manipulation.

Every MADD authorised by Switzerland and the respective partner country is published on the website of the Federal Office for the Environment (FOEN). The annual measurement and verification reports are also available there.