Risk of carbon leakage: French decree to harmonise aid to exposed companies with European standards

The French system of aid for companies exposed to a significant risk of carbon leakage has been harmonised with European obligations in the area of energy efficiency, according to a decree dated 20/02, published in the French Official Journal on 21/02/2026.

This aid concerns companies "subject to the obligation to carry out an energy audit or to set up an energy management system and which are exposed to a significant risk of carbon leakage due to the costs of the greenhouse gas Emissions Trading Scheme (ETS) being passed on in electricity prices", the text states.

The decree also provides for "the adjustment of transmission deadlines for newly-regulated companies and specifies the rules applicable to the reference periods for energy performance plans (EPP) in the various cases".

In addition, "it updates legal references and deletes transitional provisions that are no longer applicable".