French Decree: important clarifications on the offsetting of French domestic flights by DGAC and DGEC

On 31 January 2023, the Direction Générale de l'Aviation Civile (DGAC) and the Direction Générale de l'Energie et du Climat (DGEC) held an online meeting to update operators and other stakeholders about three topics:

1. Zero-rating claims associated to SAF for AO administered by France (covered here)
2. National Offsetting Scheme (Article 147) (French Decree)
3. Implementation of CORSIA in Europe (see here) (covered here)

We remind you that the French Decree n° 2022-667 of 26 April 2022 regarding the compensation of greenhouse gas emissions related to the implementation of the Article 147 of the law ‘Climat et Résilience’ concerns aircraft operators subject to the EU ETS and which emitted at least 1000 tonnes of CO2 on French domestic routes (with the exclusion of outermost regions / DOM).
 
If, during the course of 2022, you were subject to the EU ETS and your emissions on French domestic flights (within metropolitan France only) exceeded 1000 tCO2, you have the following legal obligations:

• 31 March 2023 : deadline to submit a verified 2022 EU ETS Annual Emissions Report (AER) to the DGAC by email (dta-article147-bf@aviation-civile.gouv.fr). For the national offsetting requirements, useful information will be located in tab [Emissions Data], § 8a (b) raw 34 + tab [Annex] § 11 (b).
• 30 April 2023 : deadline for the cancellation of emissions units (carbon credits) used or acquired to offset 50% of your 2022 verified emissions on French domestic flights.
• 1 June 2023 : deadline to submit your offsetting report and a verified emissions unit cancellation report to the DGEC by email (compensation-article147@developpement-durable.gouv.fr) 

The template of the Offsetting Report was published and includes the following information to be reported:

• Total offsetting credits and respect of minimal geographical shares in the EU
• Number of projects funded
• Detailled information on each projects funded
• Specific information in case of non respect of minimal geographical share in the EU
• Specific information in case of use of transitionnal measures
• List of documents in annex
  • Cancellation or attribution of credits to the AO
  • Verification of the report by the accredited verifier
  • Other documents linked with previous information

The DGAC and DGEC also clarified the eligibility requirements of the emissions units:

• Carbon credits respecting offsetting principles (Measurability, Additionality, Permanence, Transparency)
• Eligible units under CORSIA and French Label Bas Carbone projects are eligible
• Other credits or projects will be scrutinized
• Starting date of projects: 1 January 2020

Additional requirements with regards to the geographic preference of the emissions units:

• Development of offsetting projects in the EU
• Minimal share of offsetting from projects in the EU
  • 20% in 2022 – on a share of 50% of emissions covered by offsetting obligation
  • 35% in 2023 – on a share of 75% of emissions covered by offsetting obligation
  • 50% in 2024 (with revue clause) – on a share of 100% of emissions covered by offsetting obligation
• If minimal share not achieved, the operator needs to justify the unavailability of EU credits under 40€/TCO2 and on the volume required
• Justifications could be commercial prospects, mail exchanges before 1 March with at least 5 providers of offsetting projects

Details about transitional measures and biodiversity bonus were also presented (see here).

> Visit the DGAC webpage on the French Decree
> Visit our webpage on the French Decree  
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