Indirect carbon cost compensation: advance payment to industry abolished
Article 186 of the 2026 Finance Act repeals paragraph IX bis of Article L. 122-8 of the Energy Code, which allowed companies receiving indirect carbon cost compensation to be paid an advance for costs incurred in the same year. The repeal applies to costs incurred from 1 January 2026: the aid is paid in a single instalment the following year.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Applies to electricity-intensive companies exposed to a risk of carbon leakage that receive indirect carbon cost compensation: they no longer receive an in-year cash advance (10%, i.e. €66m, paid in 2025 according to the Government) for costs incurred from 2026.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
National Assembly has the final say
Si échec CMP
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Council of Ministers
Validation interne