France repeals carbon cost compensation rules in Energy Code after Constitutional Council ruling
France has issued a decree that repeals paragraphs II to XI of article L. 122-8 of the Energy Code, which governed compensation for indirect carbon costs under the EU emissions trading system. The repeal follows a Constitutional Council ruling of 9 July 2026 that those paragraphs were regulatory rather than legislative in nature. The decree also renumbers several related regulatory articles and updates their cross-references; it was signed by Prime Minister Sébastien Lecornu and published on 3 November 2026.
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What does it mean?
Some energy-intensive businesses in France could get help with the higher electricity bills caused by EU carbon costs. This decree removes the legal text that set out those rules, because the Constitutional Council said that text should have been regulatory, not law.
Who is affected?
Companies at significant risk of carbon leakage because EU carbon costs raise their electricity prices.
What changes?
Previously, paragraphs II to XI of article L. 122-8 of the Energy Code set out the indirect carbon cost compensation rules; now those paragraphs are repealed.