This week, the Federal Council said it opposes the popular initiative “For a sustainable and future-oriented financial centre in Switzerland” and has also rejected the idea of a counter-proposal. reported SRF.
The initiative’s backers say it is intended to ensure that the Swiss financial centre no longer contributes to environmental damage and climate change through its activities worldwide. The campaign committee includes representatives of the Socialist Party, the Centre Party, the Free Democratic Party (PLR/FDP), the Greens, the Green Liberal Party and the Evangelical People’s Party, as well as figures from finance and civil society.
If approved by voters and the cantons, the initiative would require the federal government to ensure that Switzerland’s financial sector operates on an environmentally sustainable basis. Banks and insurers would, among other things, be barred from providing services that support the development or expansion of new fossil-fuel reserves.
The Federal Council argues that such restrictions would have little effect on the climate because financing and insurance business prohibited in Switzerland would probably move to foreign providers. It also warns that the initiative would create uncertainty for companies and impose extra costs on the federal government if new supervisory and enforcement mechanisms were needed.
More on this:
SRF article (in German)
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