Switzerland’s impressive record of generating, importing, and providing energy for businesses and households makes its renowned prosperity possible. The country has the cleanest electricity system among all 31 International Energy Agency countries, emitting the least amount of carbon dioxide for every kilowatt of generated power. Despite an increasing population, Switzerland has managed to reduce carbon emissions by 18.3% since 1990 while experiencing continuous economic growth.

However, the country faces challenges from the impact of Russia’s invasion of Ukraine on the Swiss energy market and increasing climate change demands. To address these problems, the Swiss government plans to enact an energy strategy aimed at achieving carbon neutrality by 2050. Among the policies included in the plan are heavy subsidies for renewable energy and shutting down nuclear power plants. As this report will make clear, any prescribed roadmaps to decarbonize the Swiss economy put Switzerland’s diverse and stable energy sector, energy security, and affordability at risk. Instead, the report recommends adopting dynamic regulatory thinking based on competition, market signals, and technological neutrality to ensure a resilient and diverse energy system.