This 2007 edition of the International Energy Agency's periodic review of Switzerland's energy policies and programmes takes an in-depth look at the energy challenges facing Switzerland and provides critiques and recommendations for policy improvements. It finds that Switzerland is entering decisive times in its energy policy. In 2008, the country should see remarkable advance in electricity market reform. Support for renewable electricity is set to increase massively. Decisions on post-Kyoto targets are getting closer, and a CO2 tax will be introduced for heating and process fuels. Plus, new measures to increase energy efficiency and the broader use of renewable energy are high on the political agenda. Since the last in-depth review in 2003, Switzerland has made progress in most areas of energy policy. Still, more work remains to be done. Maintaining sufficient electricity capacity implies even stronger policies to promote energy efficiency and renewable energy sources. Switzerland’s climate policy should focus more on reducing emissions from private car use, the largest and fastest-growing emitter. Switzerland’s world-class energy R&D is expected to more than halve energy needs per capita by the second half of this century. This ambitious goal needs to be supported by consistent policies on energy efficiency and climate change.