The government has decided that up to SFr200 million ($188 million) will be made available from the national carbon tax for modernising building insulation.

The House of Representatives on Tuesday agreed to suggestions by the Senate on how the money would be spent, namely placing two-thirds into a national programme for modernising insulation.

The House had originally wanted the cantons to take part in the programme, although this is no longer the case.

Both chambers did however demand the cantons help promote renewable energies, waste heat utilisation and building services engineering. To this end, the other third of the SFr200 million would be made available.

The Federal Environment Office estimates the new measures will allow cuts of up to 15 per cent in CO2 emissions.

In May the government outlined a new CO2 law for Switzerland, which aimed to reduce CO2 emissions by at least 20 per cent in comparison with the 1990 levels by 2020. This target follows that set by the European Union countries.

Between 1990 and 2007 Switzerland reduced its greenhouse gas emissions by 2.7 per cent according to report published on Tuesday.

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