Voters from Switzerland have approved a global minimum corporate tax proposal and a new net-zero climate law that sets a target for 2050 to address climate change.
Nearly 60% of Swiss voters supported plans to cut emissions by the target year despite widespread opposition from the right-wing Swiss People's Party (SVP). In a second vote, 78.5% supported a minimum tax of 15% for multinational firms.
Switzerland Approves New Climate Law
The climate proposal seeks to address melting glaciers and requires the country to become carbon neutral by the deadline. In a post on Twitter, leading Swiss glaciologist Matthias Huss said that a "strong signal" had been sent, adding that he was very happy that the arguments of climate science were heard.
Furthermore, Socialist Party parliamentarian Valerie Piller Carrard welcomed the vote result as a crucial step forward for future generations. The support for the new climate law will require Switzerland to cut its dependence on imported oil and gas and scale up the development of greener and more homegrown energy alternatives, as per DW News.
Despite the law already being passed, the SVP refused to support it, arguing that reducing climate-damaging emissions by 75% with the target year of 2050 compared to 1990 would result in energy prices exploding.
The leader of the SVP, Marco Chiesa, criticized the "utopian" vision behind the bill last month, arguing that it would increase energy costs by roughly $450 billion despite not impacting the global climate.
The right-wing party also collected sufficient signatures to force the referendum vote under Switzerland's system of direct democracy. On the other hand, supporters of the new law argue that the country will be hard-hit by climate change and already feel the effects of rising temperatures.
Addressing the Threat of Climate Change
Swiss Finance Minister Karin Keller-Sutter said that the new tax law will ensure that the country will not lose any tax revenue to foreign countries. According to Reuters, she added that it would also create legal certainty and a stable framework.
Switzerland, in 2021, joined nearly 140 countries that signed up to an Organization for Economic Cooperation and Development (OECD) deal. It set a minimum tax rate for big companies, which sought to limit the practice of shifting profits to low-tax countries.
Even with the new tax increase, Switzerland will still have one of the lowest corporate tax levels globally. The proposal is estimated to bring $2.8 billion annually in additional revenue and has support from business groups, political parties, and the public.
Initially, campaigners of the new climate law proposed even more ambitious measures but later opted for a government plan for net-zero emissions by 2050. In a statement, Urs Bieri of the GFS Bern Institute said that supporters of the law should rejoice but argued that not everyone favored the law. He said that the argument regarding the issue has resulted in many "no" votes from opposition parties, said the Associated Press.
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