Energy savings certificates: the government prioritizes decarbonization over an increase in CEEs

During a press briefing held on Monday, June 8, the Ministry of Ecological Transition clarified that the CEEs, which finance in particular the energy renovation of buildings and the energy transition, should not be subject to a further increase in their volumes of obligations.

"The idea is not to increase (the volumes) of CEE obligations (...) but to be able to redirect CEEs towards decarbonization and electrification objectives" in connection with the challenges of the National Low Carbon Strategy (SNBC), the ministry indicated on Monday during a press briefing.

Energy Savings Certificates (CEE): A major lever for energy renovation and electric mobility

Created in 2005, the Energy Savings Certificates (ESC) scheme relies on contributions from energy and fuel suppliers to finance energy-saving initiatives. ESCs support, in particular, energy renovation grants, the replacement of heating systems, and certain measures related to electric mobility, such as the ecological bonus and social leasing.

The mechanism works on a simple principle: when a supplier grants a bonus to an individual or a company for carrying out energy efficiency work—for example, replacing an oil boiler with a heat pump—it receives energy savings certificates in return. These certificates allow it to meet the targets set by the government and avoid the penalties stipulated at the end of the period.

A financial package that will increase until 2030

At the end of 2025, the government set the level of Energy Efficiency Certificates (EEC) obligations for the following five years by decree. This new period includes a 27% increase in obligations, making it possible to mobilize more private financing for individuals and businesses.

The financial volume generated by the scheme could thus increase from 6 billion euros in 2025 to more than 8 billion euros, of which approximately 25% would be allocated to the most modest households.

A review of subsidies to strengthen electrification

Beyond the fight against fraud, the government now wants to assess the actual effectiveness of certain operations financed by the CEE.

Today, in addition to the challenges of combating fraud, there is also a "challenge of reorientation" of certain "CEEs which are not efficient enough or too efficient (...) where we can ask ourselves whether the CEE is really necessary," the ministry indicated, specifying that this is currently being studied with the Ministry of Industry as part of the electrification plan announced in April.

The objective is to focus funding more on equipment and solutions that directly contribute to reducing carbon emissions and electrifying uses.

"We will continue this cleanup work" which has already been started, and "the question arises of strengthening measures to redirect CEEs towards decarbonization and electrification actions", he added.

Energy Efficiency Certificates (EECs) are increasingly geared towards decarbonization.

Until now, the building sector has accounted for the vast majority of funding from energy savings certificates. This trend is expected to gradually shift towards providing greater support for low-carbon technologies and new electricity uses.

"We are starting from a situation where the CEEs financed 80% of the building and essentially for renovation", to move "more and more" towards financing "decarbonization", "heat pumps, but also new objects in transport such as social leasing (...) which rebalance the CEEs more in favor of electrification", said the minister's office.

This reorientation marks a new stage in French energy policy, with priority given to the decarbonization of buildings, transport and energy uses in order to accelerate the transition to an economy less dependent on fossil fuels.

Illustrative image of the article via Depositphotos.com.