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In Switzerland, almost no coal is burned to generate energy – its share of total energy is less than one percent. However, as we know, climate change does not stop at national borders. And if you include our country’s indirect emissions, things look different. If you burn all the coal that Swiss companies mine and trade, that is even more than the annual CO2– US emissions.
Commodity traders from Swiss companies operate coal mines around the world and cause huge emissions. The non-governmental organization Public Eye now wants to put an end to this with a petition. This calls for Switzerland’s complete exit from the coal trade by 2030. More than 25,000 people have already signed.
500 million tons of coal per year
Swiss commodity traders and mining operators earn billions from coal trading. Each year, about 500 million tons are mined in mines operated by Swiss companies. In total, 40 percent of the global coal trade is handled in Switzerland. “Switzerland has strong leverage with the commodity trading center. So we can and must do much more to achieve the climate goals,” says Public Eye to Blick.
In 2022, eight billion tons of coal will be mined worldwide – more than ever before! And this despite the fact that the Paris climate goals actually committed to a reduction. In addition to the enormous climate impacts of coal as an energy source, its mining is often associated with serious human rights violations and environmental damage.
Lots of money with few employees
Switzerland is considered an international hub for commodity trading. In addition to coal, Switzerland also handles about 35 percent of the world’s oil trade – for steel that would be as much as 60 percent. Huge sums of money are involved. In 2022, the raw materials sector accounted for more than 10 percent of Switzerland’s gross domestic product (GDP). At CHF 770 billion (GDP 2022), that would be about CHF 80 billion. For the first time, commodity trading contributed more to GDP than the entire Swiss financial centre.
But why is Little Switzerland so big in the commodities trade? According to Public Eye, this is due to the “historic mix of locational tax advantages, a strong financial center, weak regulation and negligent embargo policies”. Despite the huge turnover that commodity traders generate, they employ few people. It is estimated that only 10,000 people work in the approximately 1,000 resource companies located here.
The banks also benefit
According to research by Public Eye, 245 companies across Switzerland are involved in trading the environmentally harmful source of energy, mainly the Zug and Geneva-based resource giants such as Glencore and Adani. But the Swiss financial sector also earns a lot. By constantly advancing new money to the resource companies to expand their coal projects.
Between 2016 and 2022, Swiss banks are said to have provided loans of CHF 3.15 billion to the coal sector. In addition to Credit Suisse and UBS, several cantonal banks and the Swiss National Bank (SNB) are also involved.
Politics is divided
The FDP is not a big fan of the petition. “I have little sympathy for coal because of the emissions. But a trade ban in Switzerland would only weaken our economy without reducing emissions,” says FDP national councilor Olivier Feller (48). As long as even developed countries continue to demand coal, a trade ban is pointless.
‘It’s old news. Switzerland is and will remain a very attractive location for commodity traders. Hardly any company would leave Switzerland because of a coal ban,” replies Public Eye.
The SP applauds the advance. “Switzerland is a hub of raw materials and therefore bears a special responsibility. So I applaud Public Eye’s initiative,” says SP alderman Fabian Molina (32). You also see that demand regulation doesn’t work, so you have to start regulating the supply. be burned,” continues Molina.
Source:Blick
I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I’m passionate about. I have worked in this field for more than 5 years now and it’s been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.
