Switzerland’s parliament has rejected proposals for a tax on fuel as a means of reducing carbon emissions.
The Senate voted on Thursday to reject imposing a tax on fuel, following the example of the House of Representatives, despite having previously been in favour of the proposal.
The Senate also voted to compensate for 50 per cent of C02 emissions from gas plants although it had previously been in favour of compensating for 70 per cent of emissions.
However, motorists may still be forced to pay an excise of up to five cents per litre of petrol after the Senate agreed to allow the government to set a compensation rate for C02 emissions.
Switzerland has fixed a target of achieving a 20 per cent reduction in C02 emissions by 2020.