A closer look at the Energy Savings Certificates scheme

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The Energy Savings Certificates (CEE) scheme is a cornerstone of the policy for energy consumption management enabling the achievement of national targets.

Due to its organization and the establishment of a CEE market, it can be compared to the greenhouse gas emissions trading system (with the difference that the latter is established at the European level, while the CEE scheme is established only at the national level).

Operating Mechanism of the CEE Scheme

The CEE scheme, established by the law of July 13, 2005, is primarily based on an energy savings obligation imposed on "obligated parties".

These "obligated parties" are:

1. Entities placing automotive fuels or domestic heating oil on the market, above a certain sales threshold;
2. Entities selling energy (electricity, gas, heat, etc.) to final consumers, above a certain sales threshold.

Each obligated party is subject to an energy savings obligation. To meet this, they must implement actions to achieve these savings:

1. Either directly within their own activities;
2. Or through their customers, by encouraging them to make energy savings themselves.

Other important stakeholders in this mechanism, the beneficiaries of the actions (including the customers of the "obligated parties" – industries, individuals, etc.), do not directly receive CEEs.

Indeed, only "obligated parties" (as well as "eligible parties" – mainly local authorities and public law entities) can receive these CEEs by demonstrating the "active and incentive-providing" role they played with the beneficiary of the energy saving actions.

However, these beneficiaries can leverage the targets set for the "obligated parties" to have their energy saving works partially financed, receive a bonus for acquiring less energy-intensive equipment, etc.

Implementation of the Scheme

To obtain CEEs, "obligated parties" must either acquire them on the market, or implement energy saving operations within the framework of eligible actions. The various eligible actions are as follows:

1. The implementation of standardized operations. These actions, concerning common operations, come with a flat-rate value of EECs. Standardized sheets, organized by sector (residential, tertiary, etc.), specify the application sector, the content of the operation, and the conditions for the issuance of EECs;
2. The implementation of specific operations, not covered by a standardized operation sheet;
3. Contribution to energy efficiency certificate programs. In this context, certificates are issued for actions that do not directly result in energy efficiency gains.

A regular monitoring of decrees published listing the standardized operation sheets and programs makes it possible to measure the scope of operations that can be carried out under the EEC scheme.

Once energy saving actions have been completed, obligated parties (and "eligible" actors) can apply for the issuance of EECs within a certain timeframe, via a file submitted to the Minister of Energy.

The EECs obtained are then materialized by their registration in the national register of energy efficiency certificates.

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Controls and Sanctions

At the end of each period (and particularly at the end of the 5^th period extending from January 1,^st 2022 to December 31, 2025), obligated parties must hold a sufficient number of EECs to justify compliance with their energy saving target.

Failing this, and after formal notice, the "obligated party" is notably exposed to a financial penalty.

Similarly, to ensure the non-fraudulent acquisition of EECs, controls have been progressively implemented over the periods.

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Illustration credit: 557915959 @Oleg