What
As part of its Biodiversity Strategy (from 2017, currently updated) Switzerland committed to evaluate the impacts of subsidies and other incentives measures on biodiversity. The objective of this project is to deliver on this commitment. Thus, it is an important way of implementing Switzerland’s commitment under its NBSAP, Aichi Target 3 respectively.

Goal
The project is undertaking several studies (overviews and in-depth assessments) and looking at envisaged reform proposals. It is also aiming to improve the questionnaire for the regular subsidy assessments.

The project is also a way of acting on its commitment under the Global Biodiversity Framework Target 18, namely “to identify by 2025 … incentives, including subsidies, harmful for biodiversity”. By endorsing the 10PP Switzerland confirmed this commitment.

Recent activities
Based on a broad overview carried out by the Swiss Federal Institute for Forest, Snow and Landscape Research (WSL), the Federal Office for the Environment conducted a preliminary study which concluded in recommending an in-depth assessment of 8 subsidies – those considered to have the greatest potential for reform in terms of enhancing biodiversity. The subsides were related to agriculture, forest management, fuel, and regional policy. The Swiss government subsequently instructed the relevant Offices of the Federal Administration to conduct such in-depth studies on these eight instruments on biodiversity by 2024. While the federal administration already was conducting periodic reviews of subsidies, this assessment focuses on biodiversity, which is new for Switzerland in this form and has received high attention by economic, environmental, and political stakeholders.

Furthermore, the questionnaire for the periodic reviews has been supplemented in 2022 with guiding questions on conflicting public interests as well as market distortions and negative externalities. This could help to mainstream environmental and biodiversity concerns in economic and fiscal policy.

Benefits
The project aims at identifying trade-offs as well as unexploited potential synergies und subsequently reforming or even phasing out Switzerland’s subsidies with an impact on biodiversity. Thus, the project may lead to a reassignment of budgetary resources.

Lessons learned
In Switzerland the Parliament is deciding on the legal basis of subsidies as well as on the government’s budget. Accordingly, budget allocations are decided and approved by Parliament. As the 10 PP suggested the reforms may also lead to reduced pressure on Switzerland’s biodiversity and thus lower investment needs for biodiversity protection and restoration in the future.

Relevant links and resources
Swiss Biodiversity Strategy and Action Plan (admin.ch)