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29. Switzerland's financial services sector is mature and sophisticated, but its share in GDP has declined since the 2008 financial crisis due to factors such as changes in the international taxation framework and the global wealth management business and low interest rates. In view of this more challenging competitive environment, the Federal Council launched a new strategy for the financial services sector in 2020 that rests on three main pillars: (i) the creation of more favourable conditions for innovation; (ii) the promotion of international interconnectedness and open markets; and (iii) more emphasis on sustainability. (...)

1.4. Switzerland: (...) In December 2019, the Federal Department of Economic Affairs, Education and Research (EAER) published a report to evaluate the implementation of the 2016-2019 New Growth Policy. The three pillars of the policy were enhancing productivity, strengthening the resilience of the economy (e.g. enhanced "too-big-to-fail" regulation), and reducing negative externalities of economic growth (e.g. climate and energy policy). Most measures were deemed as either completed or in completion. However, measures on the development of bilateral relations with the European Union were rated as unsuccessful.

1.8. Switzerland: (...) the Federal Council published in May 2021 its "normalization strategy" based on three phases: progressive waiving of extraordinary economic stabilization measures until April 2022; maintaining measures helping companies and individuals adapt to structural economic changes (e.g. support innovation, promote targeted tourism activities); and fostering sustainable growth enablers and revitalize the economy (e.g. digitalization, climate regulation, less administrative burden). (...) In order to secure the recovery of the entire economy in the long term and increase growth potential, the Federal Council aims to: (...) contribute to decarbonization through climate policy.

1.24. Despite an overall robust economy, Switzerland faces some structural challenges. Low productivity growth, adaptation to digitalization, the ageing of the population, climate change, and household debt could have impacts in the near to long term.

1.30. According to the Federal Department of Finance, climate change is likely the greatest long term challenge for Switzerland aside from the ageing of the population. Even if Switzerland is not among the countries most vulnerable to climate change [81], it will still be impacted by its consequences and the Government indicates that in no way does it lessen its duty to contribute to international efforts to contain climate change [82]. In 2017, a country-wide study highlighted negative impacts of climate change on agriculture and forestry, as well as on productivity of workers in major urban areas, among others [83]. Impacts on the economy as a whole are difficult to assess, however, in 2020, the Federal Office for the Environment mentioned one estimate of a 12% reduction in Swiss GDP by the end of the century if worldwide CO2 emissions are not curbed [84]. In its 2021 Article IV Consultation Report, the IMF called for decisive actions to achieve Switzerland's climate change targets.
[81] Swiss Re Institute (2021), The Economics of Climate Change: No Action Not an Option.
[82] Federal Department of Finance (2021), 2021 Report on the Long-Term Sustainability of Public Finances in Switzerland, p. 5.
[83] National Centre for Climate Services (NCCS), Risks and Opportunities of Climate Change in Switzerland's Major Regions.
[84] NCCS (2020), Climate Change in Switzerland, p. 74.

1.31. In January 2021, the Government unveiled its long term policy strategy on climate change to be carbon neutral by 2050. It notably aims at reducing carbon emissions along entire value chains in Switzerland but also taking into consideration goods and services imported, applying the principle of circular economy to the extent possible [86]. Three quarters of the total Switzerland carbon footprint is created abroad. The Government thus promotes sustainability provisions in free trade agreements. After the rejection of the revised CO2 Act by popular vote in 2021, the Government submitted a new proposal on 17 December 2021 to meet the objectives of its long term climate strategy (Section 4.2.2.1.2.1).
[86] Federal Council (2021), Switzerland's Long-Term Climate Strategy, p. 16.

Table 2.1. Switzerland: Selected referenda and popular initiatives, 1 January 2017 to 31 January 2022:
Subject (votation date); Outcome
(...)
Popular initiative "For clean drinking water and healthy food – no subsidies for the use of pesticides and the use of antibiotics for prophylaxis" (13/06/2021); Rejected
Popular initiative "for a Switzerland free from synthetic pesticides" (13/06/2021); Rejected
(...)
Popular initiative "for healthy food produced under fair and ecological conditions" (fair food initiative) (23/09/2018); Rejected
(...)

Table 2.1. Switzerland: Selected referenda and popular initiatives, 1 January 2017 to 31 January 2022:
Subject (votation date); Outcome
(...)
Federal decree on the reduction of greenhouse gas emissions (CO2 Act) (13/06/2021); Rejected
(...)

Table 2.1. Switzerland: Selected referenda and popular initiatives, 1 January 2017 to 31 January 2022:
Subject (votation date); Outcome
(...)
Popular initiative "responsible companies – to protect people and the environment" (29/11/2020); Rejected
(...)

Table 2.2. Main trade and investment related laws in Switzerland, January 2022:
(...)
Legislation: Federal Law on Protection against Hazardous Substances and Preparations of 15 December 2000
Entry into force/Latest amendment: 1 January 2005/2020
Reference: RS 813.1
(...)