France - European Commission · France does not impose mandatory financial security for ELD liabilities. France does, however, impose mandatory financial security for many installations

Annex I

France

Improving financial security in the context of the

Environmental Liability Directive

No 07.0203/2018/789239/SER/ENV.E.4

May 2020

Final

Prepared by:

Valerie Fogleman, Stevens & Bolton LLP,

Cardiff University School of Law and Politics

Improving financial security in the context of the Environmental Liability Directive

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Disclaimer: The information and views set out in this assessment are those of the author(s) and do not necessarily reflect the official opinion of the European Commission. The Commission does not guarantee the accuracy of the data included in this study. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which may be made of the information contained therein.

TABLE OF CONTENTS

TABLE OF CONTENTS ......................................................................................................................................................... 3

1. INTRODUCTION ...................................................................................................................................................... 5

2. ENVIRONMENTAL INSURANCE MARKET ................................................................................................................. 6

2.1. Commercial insurers .................................................................................................................................. 6

2.2. Re/insurance pools .................................................................................................................................... 7

2.3. Mutuals ...................................................................................................................................................... 7

2.4. Other ......................................................................................................................................................... 8

3. VOLUNTARY INSURANCE POLICIES FOR ELD AND OTHER ENVIRONMENTAL LIABILITIES ....................................... 8

3.1. Environmental insurance policies .............................................................................................................. 8

3.2. Cover for ELD preventive costs .................................................................................................................. 8

3.3. Cover for ELD primary, complementary and compensatory costs ............................................................ 8

3.4. Cover for non-ELD liabilities ...................................................................................................................... 8

3.5. Nature of policies (liability only or liability and on-site remediation) ....................................................... 8

3.6. Description of policies ............................................................................................................................... 8

3.7. Model terms and conditions .................................................................................................................... 11

3.8. Date of general availability of environmental insurance policies ............................................................ 11

3.9. Environmental assessments and audits ................................................................................................... 11

3.10. Average premium .................................................................................................................................... 11

3.11. Average policy limit ................................................................................................................................. 11

3.12. Average deductible or self-insured retention .......................................................................................... 11

3.13. Average policy period .............................................................................................................................. 11

3.14. Sizes of typical insured businesses .......................................................................................................... 11

3.15. Industrial and commercial sectors that typically purchase policies ........................................................ 12

3.16. Industrial and commercial sectors with limited or no accessibility to policies ........................................ 12

3.17. Number and amount of claims ................................................................................................................ 12

3.18. Coverage litigation ................................................................................................................................... 12

3.19. Cover for ELD liabilities in general liability policies .................................................................................. 12

3.20. Cover for ELD liabilities in property policies ............................................................................................ 12

4. OTHER VOLUNTARY FINANCIAL SECURITY INSTRUMENTS AND MECHANISMS ................................................... 12

4.1. Type(s) ..................................................................................................................................................... 12

4.2. Availability ............................................................................................................................................... 12

5. MANDATORY FINANCIAL SECURITY FOR ELD LIABILITIES (ARTICLE 14(1)) ............................................................ 13

5.1. Competent authority(ies) ........................................................................................................................ 13

5.2. Legislative provisions ............................................................................................................................... 13

5.3. Environmental licence conditions ............................................................................................................ 13

5.4. Date of introduction ................................................................................................................................ 14

5.5. Effective date ........................................................................................................................................... 14

5.6. Key reasons for introduction ................................................................................................................... 14

5.7. Withdrawal of mandatory financial security ........................................................................................... 14

5.8. Guidance .................................................................................................................................................. 14

5.9. Operators subject to mandatory financial security ................................................................................. 14

5.10. Amounts and limits of mandatory financial security ............................................................................... 14

5.11. Growth of mandatory financial security .................................................................................................. 14

6. REGULATORY OVERSIGHT OF FINANCIAL SECURITY INSTRUMENTS AND MECHANISMS ..................................... 14

6.1. Review of financial security instruments or mechanisms ........................................................................ 14

6.2. Financial security instruments and mechanisms accepted...................................................................... 14

6.3. Financial security instruments and mechanisms not acceptable ............................................................ 15

6.4. Time of review ......................................................................................................................................... 15


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6.5. Regulatory costs of review ...................................................................................................................... 15

6.6. Requirements for operator to review ...................................................................................................... 15

7. ENFORCEMENT OF FINANCIAL SECURITY REQUIREMENTS .................................................................................. 15

8. EX POST ENVIRONMENTAL DAMAGE MANDATORY FINANCIAL SECURITY (ARTICLE 8(2)) ................................... 15

8.1. Date legislation or policy for mandatory financial security introduced ................................................... 15

8.2. Effective date for ex post mandatory financial security .......................................................................... 15



9. PROVIDERS OF MANDATORY FINANCIAL SECURITY INSTRUMENTS ..................................................................... 16

9.1. Insurers .................................................................................................................................................... 16

9.2. Banks and other financial institutions ..................................................................................................... 16

9.3. Sureties .................................................................................................................................................... 16

9.4. Providers outside Member State ............................................................................................................. 16

10. MEASURES TAKEN BY MEMBER STATE TO DEVELOP FINANCIAL SECURITY MARKETS ......................................... 16

11. EU ENVIRONMENTAL LEGISLATION WITH MANDATORY FINANCIAL SECURITY PROVISIONS ............................... 17

11.1. Landfill Directive ...................................................................................................................................... 17

11.2. Extractive Waste Directive ....................................................................................................................... 21

11.3. Carbon Capture and Storage Directive .................................................................................................... 23

12. EU RECOMMENDATION ON HYDRAULIC FRACTURING ........................................................................................ 25

12.1. Status ....................................................................................................................................................... 25


12.3. Financial security provisions .................................................................................................................... 26


12.5. Templates ................................................................................................................................................ 26


13. EU ENVIRONMENTAL LEGISLATION WITH NO MANDATORY FINANCIAL SECURITY PROVISIONS ......................... 26

13.1. Industrial Emissions Directive .................................................................................................................. 26

13.2. Seveso III Directive................................................................................................................................... 31

13.3. Other legislation ...................................................................................................................................... 32

14. MANDATORY FINANCIAL SECURITY FOR OFFSHORE OIL AND GAS OPERATIONS ................................................. 32


14.2. Status of offshore oil and gas operations ................................................................................................ 33

14.3. Requirements for financial security ......................................................................................................... 33

14.4. Requirement for financial security for ELD liabilities ............................................................................... 33

15. FAILURE OF FINANCIAL SECURITY ......................................................................................................................... 33

15.1. Inadequate level of financial security instrument or mechanism to pay claims ...................................... 33

15.2. Insolvency of operator leading to failure of financial security instrument or mechanism ...................... 33

15.3. Other ....................................................................................................................................................... 34

16. FUNDS ................................................................................................................................................................... 34

16.1. Name(s) ................................................................................................................................................... 34

16.2. Extension of existing fund to cover remedial costs under the ELD .......................................................... 34

16.3. Purpose .................................................................................................................................................... 34

16.4. Type ......................................................................................................................................................... 34

16.5. Source(s) of funding................................................................................................................................. 34

16.6. Number and amount of claims ................................................................................................................ 35

BIBLIOGRAPHY................................................................................................................................................................. 36


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1. INTRODUCTION

Environmental insurance for liabilities under the ELD and other environmental legislation is available in France. Cover is available for small and medium sized businesses and large businesses with sites and/or operations only in France as well as large businesses with sites and/or operations in other States as well as France.

Stand-alone environmental insurance policies that provide cover for liabilities under the ELD and other environmental legislation are widely available. They are underwritten by individual, including multinational, insurers independently as well as through Assurpol, the French co-reinsurance environmental pool.

Extensions to general liability policies that provide insurance for remediating off-site pollution from a sudden and accidental incident on an insured’s site are also widely available. As with stand-alone environmental insurance policies, they are underwritten by individual, including multinational, insurers independently as well as through Assurpol.

Environmental extensions to property policies are not generally available.

France transposed the ELD by Law No 2008-757 of 1st August 2008 on environmental liability (Loi No 2008-757 du 1er août 2008 relative à la responsabilité environnementale et à diverses dispositions d'adaptation au droit communautaire dans le domaine de l'environnement; Law 2008-757),1 and Decree No 2009-468 of 23 April 2009 on the prevention and remedying of certain damage to the environment (Décret No 2009-468 du 23 avril 2009 relatif à la prévention et à la réparation de certains dommages causés à l'environnement).2 Law 2008-757 is codified in the Environmental Code (Code de l'Environnement)3 under articles L. 160-1 et seq. as title VI, Prevention and remedying of certain environmental damage.

Decree No 2012-615 of 2 May 2012 on the safety, authorisation and declaration of public utility of pipelines for the transport of gas, hydrocarbons and chemicals (Décret No 2012-615 du 2 mai 2012 relatif à la sécurité, l'autorisation et la déclaration d'utilité publique des canalisations de transport de gaz, d'hydrocarbures et de produits chimiques)4 was subsequently enacted to extend strict liability to the transport of oil by pipeline.

France does not impose mandatory financial security for ELD liabilities.

France does, however, impose mandatory financial security for many installations classified for environmental protection (installations classées pour la protection de l'environnement; ICPE). ICPE facilities include landfills, storage facilities subject to the Extractive Waste Directive (2006/21/EC), facilities subject to the Industrial Emissions Directive (2010/75/EU), and facilities subject to the Seveso III Directive (2012/18/EU). None of the legislative provisions that mandate financial security for the above operations refers to the ELD or Law 2008-757

1 Loi No 2008-757 du 1er août 2008 relative à la responsabilité environnementale et à diverses dispositions d'adaptation au droit communautaire dans le domaine de l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000019277729&dateTexte=20191216 (in French)

2 Décret No 2009-468 du 23 avril 2009 relatif à la prévention et à la réparation de certains dommages causés à l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000020553030&categorieLien=id (in French)

3 Code de l'Environnement; https://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT000006074220 (in French)

4 Décret No 2012-615 du 2 mai 2012 relatif à la sécurité, l'autorisation et la déclaration d'utilité publique des canalisations de transport de gaz, d'hydrocarbures et de produits chimiques; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000025794106&categorieLien=id (in French)

https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000019277729&dateTexte=20191216

https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000020553030&categorieLien=id

https://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT000006074220



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although some of the measures required under the legislation, such as measures to respond to land/soil or groundwater pollution following an accident or pollution from an ICPE facility could overlap with liabilities under the ELD.

2. ENVIRONMENTAL INSURANCE MARKET

The 2017 Environmental Implementation Report for France stated that ‘while the availability of environmental liability insurance schemes continues to grow, evidence of take-up by operators is lacking.’ The report suggested that France ‘should moreover take further steps to ensure that the environmental liability insurance schemes keep growing in terms of offer and demand’.5

The 2019 Environmental Implementation Report stated, among other things, that France should ‘Improve financial security for liabilities’.6

When this report was published, the environmental insurance market in France had grown and was well developed. Stand-alone environmental insurance policies were widely available from individual insurers and/or through Assurpol. All these insurers offer stand-alone environmental insurance policies that provide cover for ELD liabilities for small to medium sized enterprises in addition to large operators with sites and/or operations in France and other States. Demand for the policies is good.

Environmental extensions to general liability policies were also widely available. The extensions are limited to the remediation of off-site pollution from a sudden and accidental incident on an insured’s site. Most extensions do not provide cover for ELD liabilities although a few extensions that specifically provide cover for ELD liabilities are available subject to cover being limited to sudden and accident incidents and subject to very small sub-limits.

Environmental extensions to property policies are not generally available. There may be exceptions for some large accounts, in which case there is a sub-limit of liability for remediation costs.

With very limited exceptions, only stand-alone environmental insurance policies provide cover for ELD liabilities.

Some reinsurance treaties for risks in France do not exclude liabilities under the ELD and other environmental legislation; other treaties have such exclusions.

2.1. Commercial insurers

2.1.1. Number of insurers

Over 35 insurers offer stand-alone environmental insurance policies for environmental risks in France. Many but not all of these insurers offer stand-alone environmental insurance policies through Assurpol. Some offer stand-alone environmental insurance policies independently. Others offer stand-alone environmental insurance policies both through the Pool and independently.

5 EU Environmental Implementation Review 2017; Country Report – France (SWD(2017) 44 final, 3 February 2017), 28-29; https://ec.europa.eu/environment/eir/pdf/country-reports-archive/report_fr_en.pdf

6 EU Environmental Implementation Review 2019; Country Report – France (SWD(2019) 120 final, 4 April 2019), 36; https://ec.europa.eu/environment/eir/pdf/report_fr_en.pdf

https://ec.europa.eu/environment/eir/pdf/country-reports-archive/report_fr_en.pdf

https://ec.europa.eu/environment/eir/pdf/report_fr_en.pdf


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2.1.2. New insurers entering the market since 2009

Two insurers began offering stand-alone environmental insurance policies after 2009, with most insurers having already offered them before this time.

2.1.3. Existing insurers that introduced environmental insurance policies since 2009

Many of the insurers that offered stand-alone environmental insurance policies when this report was published offered them before 2009. Policies were extended to provide cover for liabilities under the ELD after the ELD was transposed into French law on 27 April 2009, with the caveat that some policies had been extended before that date especially for businesses with sites and/or operations in other States as well as France.

2.2. Re/insurance pools

2.2.1. Date of establishment

The French co-reinsurance pool, Assurpol, was established on 1 January 1989. It superseded Groupement d’Intérêt Economique (GIE Garpol), which was established in 1977. The primary purpose of Assurpol was to provide reinsurance cover to insurers that provided cover for ICPE under the authorisation regime including high risk Seveso facilities (see sections 13.1.1 and 13.2.1 below). At that time, reinsurers were excluding liabilities from pollution from their reinsurance treaties due to large-scale industrial disasters.7

2.2.2. Descriptions of policies issued

Stand-alone environmental insurance policies reinsured by Assurpol provide cover for all ELD liabilities. In addition, Assurpol reinsures environmental extensions to general liability policies.

Assurpol, which is a co-reinsurance consortium, consisted of 35 insurers and seven reinsurers when this report was published.8 Insurers that are members of Assurpol individually underwrite stand-alone environmental insurance policies and/or environmental extensions to general liability policies.

Until 1 January 2020, they ceded liabilities under the policies to the Pool by means of facultative reinsurance contracts as well as by treaty. Ceded liabilities are co-reinsured by members of the Pool.

In addition, the Pool provides risk management and claims management support. Membership of the Pool does not prohibit members of it underwriting stand-alone environmental insurance policies that are not co-reinsured by the Pool.

2.3. Mutuals

Stand-alone environmental insurance policies are offered by mutuals. Several of them are members of Assurpol, especially for communities, agricultural risks and construction.

2.3.1. Date of establishment

The mutuals were established on various different dates.

7 Assurpol, ‘Assurpol en bref’; http://www.assurpol.fr/fr/presentation/assurpol-en-bref (in French)

8 Assurpol, ‘Adhérents’; http://www.assurpol.fr/fr/presentation/adherents (in French)

http://www.assurpol.fr/fr/presentation/assurpol-en-bref

http://www.assurpol.fr/fr/presentation/adherents


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2.3.2. Descriptions of policies issued

Stand-alone environmental insurance policies offered by mutuals provide the same cover as that provided by commercial insurers.

2.4. Other

There are no underwriting agencies or other types of providers of environmental insurance policies in France.

3. VOLUNTARY INSURANCE POLICIES FOR ELD AND OTHER ENVIRONMENTAL LIABILITIES

3.1. Environmental insurance policies

The environmental insurance market in France is well developed. The market has expanded since the late 1970s when GIE Garpol was established and continues to expand.

As indicated in section 2 above, stand-alone environmental insurance policies are widely available.

Multinational insurers offer stand-alone environmental insurance policies that cover all ELD liabilities under global programmes for businesses with sites and/or operations in France and other States by way of passporting.

3.2. Cover for ELD preventive costs

Stand-alone environmental insurance policies provide cover for ELD preventive costs, both to businesses with sites and/or operations only in France and businesses with sites and/or operations in France and other States.

3.3. Cover for ELD primary, complementary and compensatory costs

Stand-alone environmental insurance policies provide cover for primary, complementary and compensatory remediation, both to businesses with sites and/or operations only in France and businesses with sites and/or operations in France and other States.

3.4. Cover for non-ELD liabilities

Stand-alone environmental insurance policies provide cover for non-ELD liabilities such as claims for bodily injury, property damage and pure economic loss from exposure to pollution both to businesses with sites and/or operations only in France and businesses with sites and/or operations in France and other States.

3.5. Nature of policies (liability only or liability and on-site remediation)

All stand-alone environmental insurance policies provide cover for the costs of remediating environmental damage, including land/soil, water and biodiversity damage, caused by an insured to third-party sites as well as the costs of remediating such damage on an insured’s own site.

3.6. Description of policies

3.6.1. Format

Stand-alone environmental insurance policies offered independently and through Assurpol have a menu-type format that allows an insured to select the insuring agreements it wishes.


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3.6.2. Claims made or occurrence based

Stand-alone environmental insurance policies are underwritten on a claims made and reported basis rather than an occurrence basis. That is, a claim must be made against the insured during the policy period and reported to insurers during the policy period or the extended reporting period.

French law requires policies that provide cover for civil liabilities to provide unlimited retroactivity cover and a five-year extended reporting period (garantie subséquente). Whilst this requirement does not apply to other insurance such as cover for ELD liabilities, some stand-alone environmental insurance policies include such periods.

Depending on the policy, the trigger for the claim may be the incident that caused pollution (or other environmental damage), an order from a competent authority to remediate the damage, or a claim for compensation for loss caused by the damage.

Extensions to general liability policies that provide cover for ELD and other environmental first-party covers are underwritten on a claims made basis or an occurrence basis. That is, the policy that is on the risk when pollution occurs provides cover, not the policy that is on the risk when a claim is made. As a practical matter, however, the claim must occur during the policy period because such extensions cover – at most – sudden and accidental pollution. In addition, the policies tend to require an insured to notify the insurer of the pollution incident within a specified period of time.

3.6.3. Policies for operators

Insurers based in, or with branches in, France offer a wide range of stand-alone environmental insurance policies to operators with sites and/or operations in France as well as in France and other States. The policies are available to small and medium sized operators as well as large operators.

Depending on the insurer, the policies include insuring agreements for the following:

the remediation of on-site and off-site environmental damage under the ELD caused by operations, including transportation, carried out by the insured operator;

the remediation of pollution under other environmental legislation caused by operations, including transportation, carried out by the insured operator;

emergency costs and costs of preventive measures under the ELD under the two above bullet points;

third-party claims for bodily injury, property damage and pure economic loss;

first-party business interruption;

third-party business interruption (generally as part of a financial loss standard extension);

the insured’s business interruption costs and extra expense caused by environmental damage including pollution; and

related legal costs.

Only the first and third items are liabilities under the ELD and, thus, covered by the mandatory financial security system. The policies are thus designed to include, not only protection under the ELD but also protection under other public law as well as civil law and non-liability requirements.

Stand-alone environmental insurance policies offered for risks in France also provide cover for ecological prejudice (préjudice écologique) under Law No 2016-1087 of 8 August 2016 for the restoration of biodiversity, nature and landscape (Loi No 2016-1087 du 8 août 2016 pour la


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reconquête de la biodiversité, de la nature et des paysages).9 Law No 2016-1087 inserted articles 1246 to 1252 into the Civil Code (Code civil), as well as modifying other articles.

Law No 2016-1087 provides that a person that causes non-negligible harm to the natural environment including air, water, land/soil, landscapes and biodiversity, is liable for compensation. The first priority is for the person that caused the harm to carry out measures to restore the environmental damage. If this is not possible or if the restoration is inadequate, the person that caused the damage must pay damages and interest. This compensation is then used to restore the environment.

Article 1248 of the Environmental Code provides that:

An action for compensation for ecological damage may be brought by any person that has the capacity and interest to act, such as the State, the French Agency for Biodiversity, local authorities and their associations in which their territories are impacted, public institutions, and associations approved or created for more than five years before the institution of proceedings and whose purpose is the protection of nature and defence of the environment.

(L'action en réparation du préjudice écologique est ouverte à toute personne ayant qualité et intérêt à agir, telle que l'Etat, l'Agence française pour la biodiversité, les collectivités territoriales et leurs groupements dont le territoire est concerné, ainsi que les établissements publics et les associations agréées ou créées depuis au moins cinq ans à la date d'introduction de l'instance qui ont pour objet la protection de la nature et la défense de l'environnement.)

Insurance for ecological prejudice provides cover for the following:

preventive measures;

environmental damage assessments;

measures to determine the scope and extent of remedial actions;

remediation measures;

administrative, legal and enforcement costs;

data collection costs; and

overheads, monitoring, and costs for restoration and similar measures.10

In addition to specimen wordings for each type of stand-alone environmental insurance policy, multinational insurers have libraries of standard endorsements for each type. They also draft manuscript endorsements to supplement the endorsements in their libraries to meet the needs of individual insureds, as necessary, especially for large businesses.

3.6.4. Policies for contractors and others

Environmental insurance policies that provide cover for ELD and other environmental liabilities are also available for contractors. The policies tend to provide similar types of cover as the policies for operators, as described in section 3.6.3 above, including liability for remediating environmental damage including pollution at sites at which the contractor is carrying out operations in addition to the insured contractor’s own site.

9 Loi No 2016-1087 du 8 août 2016 pour la reconquête de la biodiversité, de la nature et des paysages; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000033016237&categorieLien=id

10 See French Insurance Association, ‘Le préjudice écologique et l’assurance des entreprises’ (28 January 2019); https://www.ffa-assurance.fr/infos-assures/le-prejudice-ecologique-et-assurance-des-entreprises (in French)


https://www.ffa-assurance.fr/infos-assures/le-prejudice-ecologique-et-assurance-des-entreprises


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3.7. Model terms and conditions

There are no model terms and conditions for insurance policies for ELD or other environmental liabilities in France.

3.7.1. Organisation issuing model terms and conditions

Not applicable

3.7.2. Description of model terms and conditions

Not applicable

3.7.3. Relationship between policies with model terms and conditions and environmental insurance policies

Not applicable

3.8. Date of general availability of environmental insurance policies

Stand-alone environmental insurance policies became generally available in the late 1970s following creation of GIE Garpol. Their range and availability has expanded since that time.

3.9. Environmental assessments and audits

Insurers that offer stand-alone environmental insurance policies for sites and/or operations in France may require prospective insureds to carry out environmental assessments and audits for their operations depending on the types of risks and the exposure.

3.10. Average premium

There is no average premium. The amount of premiums depends on the nature and size of the risk, the limit and deductible, and also the length of the policy period.

3.11. Average policy limit

One ELD stakeholder in the insurance industry stated that the average policy limit is EUR 5,000,000 depending on the nature and extent of the risk.

Another ELD stakeholder, also in the insurance industry, stated that the average policy limit is EUR 5,000,000 to EUR 15,000,000.

3.12. Average deductible or self-insured retention

There is no average deductible or self-insured retention; it depends on the nature of the risk and the limits of the policy.

3.13. Average policy period

The average policy period for a stand-alone environmental insurance policy is one year.

3.14. Sizes of typical insured businesses

There is no typical size of an insured business; they range from small and medium sized enterprises to large enterprises, as well as municipalities.


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3.15. Industrial and commercial sectors that typically purchase policies

The main industrial and commercial sectors that typically purchase stand-alone environmental insurance policies are the oil and gas industry, the chemical industry, and the foodstuffs industry,11 the waste industry and the process water industry.

3.16. Industrial and commercial sectors with limited or no accessibility to policies

No industrial and commercial sectors were noted as having limited or no accessibility for stand-alone environmental insurance policies.

3.17. Number and amount of claims

One ELD stakeholder in the insurance industry stated that there are between 100 and 150 claims against environmental insurance per year. Another ELD stakeholder, also in the insurance industry, stated that the average amount of a claim is EUR 50,000. A further ELD stakeholder, also in the insurance industry, stated that the average amount of a claim is EUR 400,000.

One of the above ELD stakeholders stated that none of the above claims is for ELD liabilities but stated instead that they are for environmental damage from fire, leakages of chemicals, faulty environmental reports, etc.

3.18. Coverage litigation

There had not been any reported coverage litigation involving environmental insurance policies in France when this report was published.

3.19. Cover for ELD liabilities in general liability policies

Environmental extensions to general liability policies are available. A limited number of these extensions specifically provide cover for liabilities under the ELD; most do not. Cover is generally limited to remediating pollution that has migrated off-site from a sudden and accidental incident on an insured’s site.

3.20. Cover for ELD liabilities in property policies

Environmental extensions to property policies are not generally available.

4. OTHER VOLUNTARY FINANCIAL SECURITY INSTRUMENTS AND MECHANISMS

4.1. Type(s)

Voluntary financial security instruments such as bank guarantees, bonds, etc. are not generally available for liabilities under the ELD or other environmental legislation. There is no demand for them because they are geared towards mandatory financial security requirements for known responsibilities such as closure and post closure (aftercare) of a landfill, not voluntary financial security for liabilities under the ELD.

4.2. Availability

Not applicable

11 See David Desforges, ‘France: Environment & Climate Change Law 2019’ (4 February 2019), s 11.2; https://iclg.com/practice-areas/environment-and-climate-change-laws-and-regulations/france

https://iclg.com/practice-areas/environment-and-climate-change-laws-and-regulations/france


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5. MANDATORY FINANCIAL SECURITY FOR ELD LIABILITIES (ARTICLE 14(1))

There are no mandatory financial security requirements for ELD liabilities in France.

5.1. Competent authority(ies)

Not applicable

5.2. Legislative provisions

5.2.1. Name(s) of legislation

Not applicable

5.2.2. Stand-alone requirement or hybrid

Not applicable

5.2.3. Consideration of mandatory financial security legislation (if not enacted)

The French Government has not considered imposing mandatory financial security for liabilities under the ELD.

5.2.4. Reasons for decision not to enact mandatory financial security legislation

Not applicable

5.2.5. Revisions to legislation

Not applicable

5.2.6. ELD liabilities covered by mandatory financial security

Not applicable

5.2.7. Description of mandatory financial security provisions

Not applicable

5.2.8. Exception for low risk sites

Not applicable

5.2.9. Exception for ISO 14001 certification or EMAS registration

Not applicable

5.2.10. Other exceptions

Not applicable

5.3. Environmental licence conditions

France has not introduced mandatory financial security for preventing and remediating environmental damage under the ELD by conditions to licences or other authorisations.

5.3.1. Stand-alone requirement or hybrid

Not applicable


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5.3.2. Revisions to licensing requirements

Not applicable

5.3.3. ELD liabilities covered by mandatory financial security

Not applicable

5.3.4. Description of mandatory financial security conditions

Not applicable

5.4. Date of introduction

Not applicable

5.5. Effective date

Not applicable

5.6. Key reasons for introduction

Not applicable

5.7. Withdrawal of mandatory financial security

Not applicable

5.8. Guidance

Not applicable

5.9. Operators subject to mandatory financial security

Not applicable

5.10. Amounts and limits of mandatory financial security

Not applicable

5.11. Growth of mandatory financial security

Not applicable

6. REGULATORY OVERSIGHT OF FINANCIAL SECURITY INSTRUMENTS AND MECHANISMS

6.1. Review of financial security instruments or mechanisms

Not applicable

6.2. Financial security instruments and mechanisms accepted

Not applicable

6.2.1. Templates

6.2.2. Requirements for environmental insurance policies

6.2.3. Form of mandatory environmental insurance policy


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6.3. Financial security instruments and mechanisms not acceptable

Not applicable

6.4. Time of review

Not applicable

6.5. Regulatory costs of review

Not applicable

6.6. Requirements for operator to review

Not applicable

7. ENFORCEMENT OF FINANCIAL SECURITY REQUIREMENTS

Not applicable

8. EX POST ENVIRONMENTAL DAMAGE MANDATORY FINANCIAL SECURITY (ARTICLE 8(2))

Articles L. 171-7 and L. 171-8 of the Environmental Code provide that, regardless of any criminal proceedings, if a person fails to comply with requirements applicable to the Code in respect of the operation of facilities or structures, the use of objects or devices, or works, operations, activities or facilities, the competent administrative authority may issue a notice to require that person to comply with them within a specified time period. In the event of an emergency, the notice sets out, by the same act or by a separate act, the necessary measures to prevent serious and imminent danger to human health, public safety or the environment.

If, at the end of the specified time, the liable person has not carried out the required measures, the competent administrative authority may impose one or more administrative sanctions. One such sanction requires the person to place funds that cover the works or operations that must be carried out with a public accountant before a date determined by the corresponding administrative authority.

Article L. 162-14 of the Environmental Code directs the prefect to take the measures listed at articles L. 171-7 and L.171-8.

8.1. Date legislation or policy for mandatory financial security introduced

The above provision was in the Environmental Code before the ELD was transposed into French law.

8.2. Effective date for ex post mandatory financial security

See section 8.1 above.


See section 8 above.


See section 8 above.


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9. PROVIDERS OF MANDATORY FINANCIAL SECURITY INSTRUMENTS

9.1. Insurers

Not applicable

9.2. Banks and other financial institutions

Not applicable

9.3. Sureties

Not applicable

9.4. Providers outside Member State

Not applicable

10. MEASURES TAKEN BY MEMBER STATE TO DEVELOP FINANCIAL SECURITY MARKETS

In 2012, the then Ministry of Ecology, Sustainable Development and the Environment (Ministère de l’écologie, du développement durable et de l’énergie), now the Ministry for the Ecological and Inclusive Transition (Ministère de la Transition écologique et solidaire) published a guide on the application of equivalence methods for assessing the costs of remedial measures under the ELD.12 At the same time, the Ministry held meetings with trade organisations for operators, scientific experts, NGOs and others, including individual insurers and Assurpol, to promote the guide and explain its content.

In its 2013 report to the Commission under then article 18(1) of the ELD, France stated that large operators were well-informed about environmental liabilities through their risk management strategy, including the use of specific insurance policies. The report also stated that insurance for environmental liabilities continued to develop in France, especially through Assurpol and the ‘environmental liability insurance framework’” (cadre d'assurance responsabilité environnementale), and that since 2005, new companies offered environmental insurance policies. The report further stated that, accordingly, combined with efforts by the Ministry and the French Insurance Association (Fédération Française de l’Assurance), environmental insurance policies would be available to small and medium sized enterprises.13

No information was provided that the French Government has taken any further measures to develop an environmental insurance market but the introduction of ecological damage in the Civil Code (see section 3.6.3 above) has helped to increase the demand for environmental insurance.

12 Commissariat général au développement durable (CGDD) du Ministère de l’Écologie, du Développement durable et de l'énergie (MEDDE), La loi responsabilité environnementale et ses méthodes d’équivalence Guide méthodologique (2012); https://ec.europa.eu/environment/legal/liability/pdf/eld_guidance/french_guide.pdf (in French). The guide is also available in English: General commission for sustainable development (CGDD) of the Ministry of Ecology, Sustainable Development and Energy (MEDDE), The Environmental Liability Law (ELL) and the equivalency methods; Methodological Guide (2012); https://ec.europa.eu/environment/legal/liability/pdf/eld_guidance/french_guide_en.pdf

13 Note des Autorités Françaises, s 3, 6; https://ec.europa.eu/environment/legal/liability/pdf/eld_ms_reports/FR.pdf (in French)

https://ec.europa.eu/environment/legal/liability/pdf/eld_guidance/french_guide.pdf

https://ec.europa.eu/environment/legal/liability/pdf/eld_guidance/french_guide_en.pdf

https://ec.europa.eu/environment/legal/liability/pdf/eld_ms_reports/FR.pdf


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11. EU ENVIRONMENTAL LEGISLATION WITH MANDATORY FINANCIAL SECURITY PROVISIONS

11.1. Landfill Directive

11.1.1. Competent authority(ies)

The Landfill Directive (1999/31/EC) is implemented in France by the following legislation:

Order of 18 December 1992 on the storage of certain final and stabilised special industrial waste for new installations (Arrêté du 18 décembre 1992 relatif au stockage de certains déchets industriels spéciaux ultimes et stabilisés pour les installations nouvelles);14

Decree No 93-1410 of 29 December 1993 establishing the rules for the exercise of the right to information in relation to waste provided for in art. 3-1 of the law of 15-07-1975 (Décret No 93-1410 du 29 décembre 1993 fixant les modalités d'exercice du droit à l'information en matière de déchets prévues à l'article 3-1 de la loi du 15 juillet 1975);15

Order of 9 September 1997 on existing landfills and new facilities for the storage of household and similar waste (Arrêté du 9 septembre 1997 relatif aux décharges existantes et aux nouvelles installations de stockage de déchets ménagers et assimilés);16

Order of 31 December 2001 amending the order of 9 September 1997 on existing landfills and new storage facilities for household and similar waste (Arrêté du 31 décembre 2001 modifiant l'arrêté du 9 septembre 1997 relatif aux décharges existantes et aux nouvelles installations de stockage de déchets ménagers et assimilés);17

Order of 3 April 2002 amending the Order of 31 December 2001 amending the Decree of 9 September 1997 on existing landfills and new storage facilities for household and similar waste (Arrêté du 3 avril 2002 modifiant l'arrêté du 31 décembre 2001 modifiant l'arrêté du 9 septembre 1997 relatif aux décharges existantes et aux nouvelles installations de stockage de déchets ménagers et assimilés);18

14 Arrêté du 18 décembre 1992 relatif au stockage de certains déchets industriels spéciaux ultimes et stabilisés pour les installations nouvelles; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000727013&categorieLien=id (in French)

15 Décret No 93-1410 du 29 décembre 1993 fixant les modalités d'exercice du droit à l'information en matière de déchets prévues à l'article 3-1 de la loi du 15 juillet 1975; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000700494&categorieLien=id (in French)

16 Arrêté du 9 septembre 1997 relatif aux décharges existantes et aux nouvelles installations de stockage de déchets ménagers et assimilés; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000568897&categorieLien=id (in French)

17 Arrêté du 31 décembre 2001 modifiant l'arrêté du 9 septembre 1997 relatif aux décharges existantes et aux nouvelles installations de stockage de déchets ménagers et assimilés; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000328293&categorieLien=id (in French)

18 Arrêté du 3 avril 2002 modifiant l'arrêté du 31 décembre 2001 modifiant l'arrêté du 9 septembre 1997 relatif aux décharges existantes et aux nouvelles installations de stockage de déchets ménagers et assimilés; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000778114&categorieLien=id (in French)

https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000727013&categorieLien=id











18

Decree of 30 December 2002 on the storage of hazardous waste (Arrêté du 30 décembre 2002 relatif au stockage de déchets dangereux);19

Order of 31 December 2004 on inert industrial waste storage facilities from classified installations (Arrêté du 31 décembre 2004 relatif aux installations de stockage de déchets industriels inertes provenant d'installations classes);20

Decree No 2005-635 of 30 May 30 2005 relating to the control of the circuits of treatment of the waste (Décret No 2005-635 du 30 mai 2005 relatif au contrôle des circuits de traitement des déchets);21

Order of 7 July 2005 fixing the content of the registers referred to in Article 2 of Decree No. 2005-635 of 30 May 2005 on the control of waste treatment circuits and concerning hazardous waste and non-hazardous or radioactive waste (Arrêté du 7 juillet 2005 fixant le contenu des registres mentionnés à l'article 2 du décret n° 2005-635 du 30 mai 2005 relatif au contrôle des circuits de traitement des déchets et concernant les déchets dangereux et les déchets autres que dangereux ou radioactifs);22

Order of 7 November 2005 on the annual declaration to the administration of inert waste storage facilities mentioned in Article 5 of Decree No. 2005-635 of 30 May 2005 (Arrêté du 7 novembre 2005 relatif à la déclaration annuelle à l'administration des installations de stockage de déchets inertes mentionnée à l'article 5 du décret n° 2005-635 du 30 mai 2005);23

Decree No 2006-302 of 15 March 2006 adopted for the application of Article L. 541-30-1 of the Environment Code relating to inert waste storage facilities (Décret No 2006-302 du 15 mars 2006 pris pour l'application de l'article L. 541-30-1 du code de l'environnement relatif aux installations de stockage de déchets inertes);24

Order of 15 March 2006 setting out the list of types of inert waste eligible for inert waste storage facilities and the operating conditions of these facilities (Arrêté du 15

19 Arrêté du 30 décembre 2002 relatif au stockage de déchets dangereux; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000236168&categorieLien=id (in French)

20 Arrêté du 31 décembre 2004 relatif aux installations de stockage de déchets industriels inertes provenant d'installations classes; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000607028&categorieLien=id (in French)

21 Décret No 2005-635 du 30 mai 2005 relatif au contrôle des circuits de traitement des déchets; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000257088&categorieLien=id (in French)

22 Arrêté du 7 juillet 2005 fixant le contenu des registres mentionnés à l'article 2 du décret n° 2005-635 du 30 mai 2005 relatif au contrôle des circuits de traitement des déchets et concernant les déchets dangereux et les déchets autres que dangereux ou radioactifs; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000812365&categorieLien=id (in French)

23 Arrêté du 7 novembre 2005 relatif à la déclaration annuelle à l'administration des installations de stockage de déchets inertes mentionnée à l'article 5 du décret n° 2005-635 du 30 mai 2005; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000263750&categorieLien=id (in French)

24 Décret No 2006-302 du 15 mars 2006 pris pour l'application de l'article L. 541-30-1 du code de l'environnement relatif aux installations de stockage de déchets inertes; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000456881&categorieLien=id (in French)














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mars 2006 fixant la liste des types de déchets inertes admissibles dans des installations de stockage de déchets inertes et les conditions d'exploitation de ces installations);25

Order of 30 October 2006 setting the content of the registers mentioned in Article 2 of Decree No. 2005-635 of 30 May 2005 on the control of waste treatment circuits and the form of the radioactive waste monitoring slip mentioned in Article 4 (Arrêté du 30 octobre 2006 fixant le contenu des registres mentionnés à l'article 2 du décret No 2005-635 du 30 mai 2005 relatif au contrôle des circuits de traitement des déchets et le formulaire du bordereau de suivi des déchets radioactifs mentionné à l'article 4);26 and

Order of 18 July 2007 amending the amended Order of 9 September 1997 on non-hazardous waste storage facilities (Arrêté du 18 juillet 2007 modifiant l'arrêté du 9 septembre 1997 modifié relatif aux installations de stockage de déchets non dangereux).27

The competent authority is the prefect (préfet), which is assisted by the Regional Directorate for the Environment, Planning and Housing (Direction Régionale de l’Environnement, de l’Aménagement et du Logement; DREAL). The Inspectorate of Classified Installations (Inspection des Installations Classées) also has responsibilities under the above legislation. Further, the prefect issues environmental permits.

The DREAL is the only regional pilot in the implementation of public policies of the Ministry of Ecological and Solidarity Transition and the Ministry of Territory Cohesion. Under the authority of the regional prefect and the department prefects, the DREAL are responsible for developing and coordinating the State's policies on ‘sustainable development and development, ecological transition, anti-corruption climate change, the preservation of the quality of environments (water, air, soil), biodiversity and landscapes, the prevention of pollution, risks and nuisances, as well as housing, urban renewal and transport, seeking coherence between these issues’. In addition, DREAL ‘contributes to information, educating citizens about sustainable development issues, raising awareness of risks, and contributing to the emergence of a green and equitable economy’. Further, DREAL ‘develops or co-develops framework documents, directly exercises various special policies, issues notices in regulatory procedures, produces or publishes data or information’. Finally, DREAL ‘may be tasked by the prefect to coordinate different services on specific projects’ under the Ministry of Ecological and Solidarity Transition and the Ministry of Territory Cohesion.

25 Arrêté du 15 mars 2006 fixant la liste des types de déchets inertes admissibles dans des installations de stockage de déchets inertes et les conditions d'exploitation de ces installations; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000266389&categorieLien=id (in French)

26 Arrêté du 30 octobre 2006 fixant le contenu des registres mentionnés à l'article 2 du décret No 2005-635 du 30 mai 2005 relatif au contrôle des circuits de traitement des déchets et le formulaire du bordereau de suivi des déchets radioactifs mentionné à l'article 4; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000788447&categorieLien=id (in French)

27 Arrêté du 18 juillet 2007 modifiant l'arrêté du 9 septembre 1997 modifié relatif aux installations de stockage de déchets non dangereux; https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000467257&categorieLien=id (in French)








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11.1.2. Financial security provisions

Article R. 516-2 of the Environmental Code sets out financial security provisions for the operator of a landfill and other waste storage facilities excluding inert waste storage facilities (see section 13.1 below for a description of article R. 516-2).

Article R. 516-2 states that financial security for waste storage facilities must cover site monitoring, measures if an accident or pollution occurs, and restoration of the site of the facility after operations cease.

At least six months before the end of the monitoring period following the closure of a landfill, article 52 of the Order of 9 September 1997 requires the operator to send the prefect, among other things, the file for the landfill. The Inspectorate of Classified Installations then directs the prefect to ensure that the landfill is being restored in accordance with the requirements of the prefectural authorisation. The prefect may request, at the expense of the operator, an expert third party to carry out a critical evaluation of the technical requirements to justify releasing the mandatory financial security for the landfill.

The prefect sends the inspection report prepared by the Inspectorate of Classified Installations to the operator and the mayor of the municipality or municipalities as well as members of the local information committee. On the basis of this report, the prefect consults the mayor(s) on whether to release the financial security obligations for the landfill. The prefect then determines, by an additional order and in view of residual risks posed by the landfill, the date on which the financial security may be released, either in whole or in part.

Article 57 of the Order sets out additional requirements for the review of the restoration and other works to which financial security applies, including the potential for additional remedial works, before the financial security for the landfill may be released.

11.1.3. Financial security instruments and mechanisms accepted

Acceptable financial security instruments and mechanisms under section L. 516-1 are as follows:

a) the written commitment of a credit institution, a finance company, an insurance company or a mutual bonding company;

b) a consignment in the hands of the Caisse des dépôts et consignations; c) for waste storage facilities, a guarantee fund managed by the Environment and Energy

Management Agency; d) a private guarantee fund, proposed by an industry and whose adequate financial

capacity is defined by the Minister responsible for classified facilities; and e) a written undertaking, a self-contained guarantee within the meaning of article 2321

of the Civil Code, from the individual at the jurisdiction of their residence, or the legal person, wherever its head office is located, which owns over half of the operator's capital or which controls the operator against the criteria set out in article L. 233-3 of the Code of Commerce. In this case, the guarantor must itself be the beneficiary of a written commitment from a credit institution, a finance company, an insurance company, a mutual bond company or a guarantee fund mentioned in d) above, or have deposited funds into the Caisse des dépôts et consignations.

If the head office of the guarantor’s legal entity is not located in a Member State of the EU or in a State that is party to the Agreement on the European Economic Area, the guarantor must have an agency, branch or established representation in France.

The operator of several facilities that meet the provisions of section L. 515-36 may pool the financial guarantees required under section R. 516-1. A joint order by the Minister responsible


21

for the Economy and the Minister responsible for classified facilities sets out the terms of the formation of the mutualised financial guarantee between institutions, including a partial or total appeal by the institution, as well as the terms of its review in the event of a change affecting one of the facilities covered by the mutualised guarantee. The authorisation order sets out the amount of financial guarantees required and the terms of the discount.

As soon as the installation begins operating, the operator sends the prefect a document evidencing the financial guarantees. The document is based on a model formulated by the joint decree of the Minister for the Economy and the Minister responsible for classified facilities.

The amount of financial guarantees is based on the operator's guidance and the cost of the transactions, as set out in the authorisation order.

11.1.4. Templates

A model of acceptable financial security is available in the ‘Arrêté du 31 mai 2012 relatif aux modalités de détermination et d'actualisation du montant des garanties financières pour la mise en sécurité des installations classées et des garanties additionnelles en cas de mise en œuvre de mesures de gestion de la pollution des sols et des eaux souterraines’.

11.1.5. Financial security instruments and mechanisms not acceptable

There is no list of financial security instruments that are not acceptable.

11.2. Extractive Waste Directive


The Extractive Waste Directive is implemented in France by the following legislation:

Decree No 2010-369 of 13 April 2010 amending the classification of classified installations (Décret No 2010-369 du 13 avril 2010 modifiant la nomenclature des installations classes);28

Law No 2010-788 of 12 July 2010 on national commitment for the environment (1) (Loi No 2010-788 du 12 juillet 2010 portant engagement national pour l'environnement (1));29

Order of 19 April 2010 on the management of waste from the extractive industries (Arrêté du 19 avril 2010 relatif à la gestion des déchets des industries extractives);30

Order of 5 May 2010 amending the decree of September 22, 1994 relative to quarry operations and facilities for the first treatment of quarry materials to take into account the provisions of the European directive concerning the management of waste from the extractive industry (Arrêté du 5 mai 2010 modifiant l'arrêté du 22 septembre 1994 relatif aux exploitations de carrières et aux installations de premier traitement des

28 Décret No 2010-369 du 13 avril 2010 modifiant la nomenclature des installations classes; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022092730&categorieLien=id (in French)

29 Loi No 2010-788 du 12 juillet 2010 portant engagement national pour l'environnement (1); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022470434&categorieLien=id (in French)

30 Arrêté du 19 avril 2010 relatif à la gestion des déchets des industries extractives; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022673160&categorieLien=id (in French)





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matériaux de carrière pour la prise en compte des dispositions de la directive européenne concernant la gestion des déchets de l'industrie extractive);31

Decree No 2010-1172 of 5 October 2010 modifying the article R. 516-2 of the code of the environment (Décret No 2010-1172 du 5 octobre 2010 modifiant l'article R. 516-2 du code de l'environnement; Decree No 2010-1172);32

Decree No 2010-1389 of 12 November 2010 on the obligation to provide financial guarantees prior to the opening of research or mining operations (Décret No 2010-1389 du 12 novembre 2010 relatif à l'obligation de constituer des garanties financières avant l'ouverture de travaux de recherche ou d'exploitation de mines);33

Decree No 2010-1394 of 12 November 2010 on the requirements applicable to certain mining operations and installations for the management of inert waste and unpolluted land resulting from their operation (Décret No 2010-1394 du 12 novembre 2010 relatif aux prescriptions applicables à certaines exploitations de mines et aux installations de gestion de déchets inertes et des terres non polluées résultant de leur fonctionnement);34

Ordinance No 2010-1579 of 17 December 2010 on various provisions for adaptation to European Union law in the field of waste (Ordonnance No 2010-1579 du 17 décembre 2010 portant diverses dispositions d'adaptation au droit de l'Union européenne dans le domaine des déchets);35 and

Decree No 2011-220 of 25 February 2011 on special action plans concerning waste management in the extractive industry (Décret No 2011-220 du 25 février 2011 relatif aux plans particuliers d'intervention concernant la gestion des déchets de l'industrie extractive).36

The competent authorities are the same as those set out in section 11.1.1 above.


Decree No 2010-1389 sets out the financial security requirements for exploration and mining activities. Article 1 requires the operator of an extractive waste facility (and a mine) to send the prefect a document certifying that financial security guarantees have been provided. The

31 Arrêté du 5 mai 2010 modifiant l'arrêté du 22 septembre 1994 relatif aux exploitations de carrières et aux installations de premier traitement des matériaux de carrière pour la prise en compte des dispositions de la directive européenne concernant la gestion des déchets de l'industrie extractive; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022743640&categorieLien=id (in French)

32 Décret No 2010-1172 du 5 octobre 2010 modifiant l'article R. 516-2 du code de l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022893885&categorieLien=id (in French)

33 Décret No 2010-1389 du 12 novembre 2010 relatif à l'obligation de constituer des garanties financières avant l'ouverture de travaux de recherche ou d'exploitation de mines; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000023081203&categorieLien=id (in French)

34 Décret No 2010-1394 du 12 novembre 2010 relatif aux prescriptions applicables à certaines exploitations de mines et aux installations de gestion de déchets inertes et des terres non polluées résultant de leur fonctionnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000023081467&categorieLien=id (in French)

35 Ordonnance No 2010-1579 du 17 décembre 2010 portant diverses dispositions d'adaptation au droit de l'Union européenne dans le domaine des déchets; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000023246129&categorieLien=id (in French)

36 Décret No 2011-220 du 25 février 2011 relatif aux plans particuliers d'intervention concernant la gestion des déchets de l'industrie extractive; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000023646057&categorieLien=id (in French)








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certifying document must be set out according to a model defined by an order of the Minister in charge of mines.

Article 1 of Decree No 2010/1389 further provides that the amount of financial security is established based on information provided by the operator, taking into account the cost of the following operations, as indicated in the order authorising the facility:

monitoring storage facilities for inert waste and unpolluted soil that results from the operation of a mine when they are likely to result in a major accident as a result of failure or other faulty operation such as the collapse of a slag heap or the failure of a dike;

response to the collapse of a slag heap or dike consisting of inert waste and unpolluted soil resulting from the extractive industry rupturing when the consequences of the collapse or rupture could lead to a major accident; and

measures to restore the site of the extractive waste facility (or mine) at the end of the operational phase.

The operator must send the prefect a document that confirms the renewal of a financial guarantee at least three months after it expires.

Article R. 516-2 of the Environmental Code (see section 13.1 below) states that financial security for quarries must cover the restoration of the site of the quarry; monitoring storage facilities for inert waste and unpolluted soil if they are likely to give rise to a major accident such as the collapse of a slope, the rupture of a dike or a similar major accident from a failure or improper procedure; and measures to respond to the collapse of a slope or rupture of a dike made of inert waste and unpolluted soil/land from the extractive industry if the consequences are likely to give rise to a major accident.


Article 1 of Decree No 2010-1172 (mining) and article R. 516-2 of the Environment Code (quarrying) both state that acceptable financial guarantees are a written commitment by a credit institution or an insurance enterprise (l'engagement écrit d'un établissement de crédit ou d'une entreprise d'assurance).

11.2.4. Templates

The document certifying that financial security guarantees that have been provided pursuant to article 1 of Decree No 2010-1172 (mining) must conform to a model (see section 11.2.1 above).

There are no templates for financial security instruments for quarrying.

11.2.5. Financial security instruments not acceptable

There is no list of financial security instruments that are not acceptable.

11.3. Carbon Capture and Storage Directive

11.3.1. Status of implementation

There were no facilities for the storage of carbon dioxide in France when this report was published.


24


The Directive on the geological storage of carbon dioxide (2009/31/EC) is implemented in France by the following legislation:

Law No 2010-788 of 12 July 2010 on national commitment for the environment (1) (Loi No 2010-788 du 12 juillet 2010 portant engagement national pour l'environnement (1));37

Ordinance No 2010-1232 of 21 October 2010 on various adaptation provisions to European Union environmental law (Ordonnance No 2010-1232 du 21 octobre 2010 portant diverses dispositions d'adaptation au droit de l'Union européenne en matière d'environnement; Ordinance 2010-1232);38 and

Decree No 2011-1411 of 31 October 2011 on the geological storage of carbon dioxide to combat global warming (Décret No 2011-1411 du 31 octobre 2011 relatif au stockage géologique de dioxyde de carbone afin de lutter contre le réchauffement climatique; Decree 2011-1411);39 and

Article R. 516-2 of the Environmental Code.

The competent authority is the prefect due to the storage of carbon dioxide being subject to ICPE.


Article R. 516-2 of the Environmental Code sets out the financial security provisions for the operator of a storage site for carbon dioxide (see section 13.1 below).

The financial security must cover measures set out in the post-closure (aftercare) plan including, in particular, the final closure of the site and monitoring the site for at least 30 years after that time, measures to respond to risks of the leakage of carbon dioxide and an accident or pollution before or after the closure of the facility, and the surrender of greenhouse gas emission allowances in the event of a leak of carbon dioxide.

Article 5(1) of Ordinance 2010-1232 (which created articles L. 229-38ff of the Environmental Code) requires the operator of a storage site for carbon dioxide to have financial security before injection begins and throughout the entire period of operation of the facility, including its closure, until liability for the site is transferred to the relevant governmental authority. The financial security must be sufficient to cover obligations for the leakage of greenhouse gases.

If the State incurs costs by carrying out the operator’s obligations, it may recover those costs from the operator’s financial security.

Article 5 further provides that the obligation for an operator to have financial security ends on the date on which the transfer of liabilities for the storage facility is effective.

Article 2 of Decree 2011-1411 (which creates article R. 229-76 of the Environmental Code) requires revisions to the financial security to take account of the assessed risk of leakage of

37 Loi No 2010-788 du 12 juillet 2010 portant engagement national pour l'environnement (1); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022470434&categorieLien=id (in French)

38 Ordonnance No 2010-1232 du 21 octobre 2010 portant diverses dispositions d'adaptation au droit de l'Union européenne en matière d'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022934766&categorieLien=id (in French)

39 Décret No 2011-1411 du 31 octobre 2011 relatif au stockage géologique de dioxyde de carbone afin de lutter contre le réchauffement climatique; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000024738062&categorieLien=id (in French)





25

carbon dioxide, the estimated costs of obligations under the authorisation as well as obligations resulting from the inclusion of the storage sites in the greenhouse gas emission system.

If an authorisation for a storage facility is withdrawn, the financial security is maintained until a new operating authorisation is issued or responsibility is transferred to the relevant governmental authority.


The legislation does not specify acceptable financial security instruments or mechanisms.

Article R. 516-2 of the Environmental Code sets out acceptable financial security instruments and mechanisms (see section 13.1.3 below) due to the storage of carbon dioxide being subject to ICPE.

11.3.5. Templates

There are no templates for financial security instruments.


There is no list of financial security instruments or mechanisms that are not acceptable.

12. EU RECOMMENDATION ON HYDRAULIC FRACTURING

12.1. Status

Law No 2011-835 of 13 July 2011 prohibiting the exploration and production of mines of liquid or gaseous hydrocarbons by hydraulic fracturing and repealing exclusive research licences for projects using this technique (Loi No 2011-835 du 13 juillet 2011 visant à interdire l'exploration et l'exploitation des mines d'hydrocarbures liquides ou gazeux par fracturation hydraulique et à abroger les permis exclusifs de recherches comportant des projets ayant recours à cette technique)40 prohibits hydraulic fracturing (fracking) in France.

On 11 October 2013, the Constitutional Court (Cour Constitutionnel) upheld the prohibition in a challenge against the Law by an energy company that had had two exploration licences repealed. 41

In addition, Law No 2017-1839 of 30 December 2017 to end hydrocarbon research and exploitation and to lay down various provisions relating to energy and the environment (Loi No 2017-1839 de 30 decembre 2017 mettant fin à la recherche ainsi qu'à l'exploitation des hydrocarbures et portant diverses dispositions relatives à l'énergie et à l'environnement)42

40 Loi No 2011-835 du 13 juillet 2011 visant à interdire l'exploration et l'exploitation des mines d'hydrocarbures liquides ou gazeux par fracturation hydraulique et à abroger les permis exclusifs de recherches comportant des projets ayant recours à cette technique; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000024361355&categorieLien=id (in French)

41 Décision No 2013-346 QPC du 11 octobre 2013; Société Schuepbach Energy LLC [Interdiction de la fracturation hydraulique pour l'exploration et l'exploitation des hydrocarbures - Abrogation des permis de recherches]; https://www.conseil-constitutionnel.fr/decision/2013/2013346QPC.htm (in French). An English translation of the decision is available at https://www.conseil-constitutionnel.fr/en/decision/2013/2013346QPC.htm

42 Loi No 2017-1839 de 30 decembre 2017; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000036339396&dateTexte=20200127 (in French)


https://www.conseil-constitutionnel.fr/decision/2013/2013346QPC.htm

https://www.conseil-constitutionnel.fr/en/decision/2013/2013346QPC.htm

https://www.conseil-constitutionnel.fr/en/decision/2013/2013346QPC.htm



26

provides for the phasing out of unconventional (and conventional) oil and gas exploration (see section 14.3 below).


The competent authority for licensing unconventional (and conventional) oil and gas operations in France is the Ministry for the Ecological and Inclusive Transition.

12.3. Financial security provisions

Not applicable


Not applicable

12.5. Templates

Not applicable


Not applicable

13. EU ENVIRONMENTAL LEGISLATION WITH NO MANDATORY FINANCIAL SECURITY PROVISIONS

13.1. Industrial Emissions Directive


The Industrial Emissions Directive is implemented in France by the following legislation:

Order of 23 July 2010 relating to boilers in combustion plants with a thermal power greater than or equal to 20 MWth authorized or modified as from 1 November 2010 (Arrêté du 23 juillet 2010 relatif aux chaudières présentes dans les installations de combustion d'une puissance thermique supérieure ou égale à 20 MWth autorisées ou modifiées à compter du 1er novembre 2010);43

Ordinance No. 2012-7 of 5 January 2012 transposing Chapter II of Directive 2010/75 / EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (Ordonnance No 2012-7 du 5 janvier 2012 portant transposition du chapitre II de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution));44

Order of 18 December 2012 amending the decree of 20 September 2002 concerning incineration and co-incineration facilities for non-hazardous waste and facilities incinerating waste from infectious risk care activities and the order of 20 September

43 Arrêté du 23 juillet 2010 relatif aux chaudières présentes dans les installations de combustion d'une puissance thermique supérieure ou égale à 20 MWth autorisées ou modifiées à compter du 1er novembre 2010; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022818485&categorieLien=id (in French)

44 Ordonnance No 2012-7 du 5 janvier 2012 portant transposition du chapitre II de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000025104955&categorieLien=id (in French)




27

2002 on incineration and co-incineration installations for hazardous waste (Arrêté du 18 décembre 2012 modifiant l'arrêté du 20 septembre 2002 relatif aux installations d'incinération et de co-incinération de déchets non dangereux et aux installations incinérant des déchets d'activités de soins à risques infectieux et l'arrêté du 20 septembre 2002 relatif aux installations d'incinération et de co-incinération de déchets dangereux);45

Order of 28 February 2013 transposing Chapters V and VI of Directive 2010/75 / EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (Arrêté du 28 février 2013 portant transposition des chapitres V et VI de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution));46

Order of 2 May 2013 amending the decree of June 29, 2004 relating to the operating balance provided for in Article R. 512-45 of the Environment Code (Arrêté du 2 mai 2013 modifiant l'arrêté du 29 juin 2004 relatif au bilan de fonctionnement prévu à l'article R. 512-45 du code de l'environnement);47

Order of 2 May 2013 amending the Decree of 15 December 2009 setting certain thresholds and criteria mentioned in Articles R. 512-33, R. 512-46-23 and R. 512-54 of the Environment Code (Arrêté du 2 mai 2013 modifiant l'arrêté du 15 décembre 2009 fixant certains seuils et critères mentionnés aux articles R. 512-33, R. 512-46-23 et R. 512-54 du code de l'environnement);48

Order of 2 May 2013 on the definitions, list and criteria of Directive 2010/75 / EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (Arrêté du 2 mai 2013 relatif aux définitions, liste et critères de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution));49

Decree No 2013-374 of 2 May 2013 transposing the general provisions and Chapter II of Directive 2010/75 / EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (Décret No 2013-374 du 2 mai 2013 portant transposition des dispositions générales et

45 Arrêté du 18 décembre 2012 modifiant l'arrêté du 20 septembre 2002 relatif aux installations d'incinération et de co-incinération de déchets non dangereux et aux installations incinérant des déchets d'activités de soins à risques infectieux et l'arrêté du 20 septembre 2002 relatif aux installations d'incinération et de co-incinération de déchets dangereux; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000026856084&categorieLien=id (in French)

46 Arrêté du 28 février 2013 portant transposition des chapitres V et VI de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027287073&categorieLien=id (in French)

47 Arrêté du 2 mai 2013 modifiant l'arrêté du 29 juin 2004 relatif au bilan de fonctionnement prévu à l'article R. 512-45 du code de l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027385558&categorieLien=id (in French)

48 Arrêté du 2 mai 2013 modifiant l'arrêté du 15 décembre 2009 fixant certains seuils et critères mentionnés aux articles R. 512-33, R. 512-46-23 et R. 512-54 du code de l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027385581&categorieLien=id (in French)

49 Arrêté du 2 mai 2013 relatif aux définitions, liste et critères de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027385591&categorieLien=id (in French)







28

du chapitre II de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution));50

Decree No 2013-375 of 2 May 2013 modifying the nomenclature of classified installations (Décret No 2013-375 du 2 mai 2013 modifiant la nomenclature des installations classes);51

Order of 26 August 2013 relating to combustion plants with a capacity of 20 MW or more subject to authorization under heading 2910 and item 2931 (Arrêté du 26 août 2013 relatif aux installations de combustion d'une puissance supérieure ou égale à 20 MW soumises à autorisation au titre de la rubrique 2910 et de la rubrique 2931);52 and

Order of 24 September 2013 on the general requirements applicable to installations covered by the registration procedure under heading No 2910-B of the nomenclature of classified installations for the protection of the environment (Arrêté du 24 septembre 2013 relatif aux prescriptions générales applicables aux installations relevant du régime de l'enregistrement au titre de la rubrique No 2910-B de la nomenclature des installations classées pour la protection de l'environnement).53

The competent authority is the prefect. The Inspectorate of Classified Installations also has responsibilities under the above legislation. Further, the prefect issues environmental permits. See also section 11.1.1 above.

In order to describe the scope of mandatory financial security under the Industrial Emissions Directive and the Seveso III Directive (see section 13.2 below), the following briefly describes basic elements of the ICPE regime.

The ICPE regime was introduced by Law No 76-663 of 19 July 1976 (Loi No 76-663 du 19 juillet 1976 relative aux installations classées pour la protection de l'environnement), repealed on 21 September 2000.54 The current version is mostly codified in the Environmental Code.

Facilities that have a low risk of causing environmental damage, that is facilities with low polluting activities, must make a declaration to the relevant competent authority. Facilities that are classified as medium risk must be registered. Facilities that are classified as high risk, that is facilities with the most polluting activities, must obtain an authorisation/permit.

50 Décret No 2013-374 du 2 mai 2013 portant transposition des dispositions générales et du chapitre II de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027385498&categorieLien=id (in French)

51 Décret No 2013-375 du 2 mai 2013 modifiant la nomenclature des installations classes; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027385534&categorieLien=id (in French)

52 Arrêté du 26 août 2013 relatif aux installations de combustion d'une puissance supérieure ou égale à 20 MW soumises à autorisation au titre de la rubrique 2910 et de la rubrique 2931; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027995928&categorieLien=id (in French)

53 Arrêté du 24 septembre 2013 relatif aux prescriptions générales applicables aux installations relevant du régime de l'enregistrement au titre de la rubrique No 2910-B de la nomenclature des installations classées pour la protection de l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000028071164&categorieLien=id (in French)

54 Loi No 76-663 du 19 juillet 1976 relative aux installations classées pour la protection de l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000000684771&categorieLien=cid (in French)





https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000000684771&categorieLien=cid


29

Applicants for facilities subject to the declaration regime submit a description of proposed activities, including related details such as plans, to the relevant competent authority. Operators of the facilities are subject to national standardised requirements.

Applicants for facilities subject to the registration regime submit the above together with details of potential effects of their operations to human health and the environment, together with the operator’s technical and financial capabilities. If the competent authority does not accept these details, it can refuse to register the facility.

Applicants for facilities subject to the authorisation regime submit the above information and additional detailed information to the relevant competent authority. Following amendments to the ICPE regime on 1 March 2017, the detailed procedures include informal presentations to the relevant competent authorities or a preliminary project certificate. Information submitted with an application for an authorisation is subject, among other things, to review by the prefect and a public hearing.55 Depending on the type of ICPE facility, mandatory financial security may also be required (see section 13.1.2 below).

When this report was published there were approximately 500,000 ICPE facilities in France. Of these, approximately 15,300 were registered, and approximately 27,900 had an authorisation/permit. Of the 27,900 facilities that had a permit, approximately 6,840 were subject to the Industrial Emissions Directive and approximately 1,312 were subject to the Seveso III Directive (see section 13.2 below).56

Under French law, the last operator of an ICPE site is liable for remediating any contamination at the site. The purchaser of such a site may, however, apply to the competent authority to assume the last operator’s liabilities. If the purchaser does so, it must provide financial security. The last operator remains liable, however, if the purchaser fails to comply with any requirements to remediate the site and the financial security is inadequate.57


Article R. 516-2 of the Environmental Code provides that specified ICPE facilities are subject to mandatory financial security requirements. The number of facilities subject to such requirements increased substantially on 1 July 2012 when Decree No 2012-633 of 3 May 2012 on the obligation to provide financial guarantees for the security of certain classified installations for the protection of the environment (Décret No 2012-633 du 3 mai 2012 relatif à l'obligation de constituer des garanties financières en vue de la mise en sécurité de certaines installations classées pour la protection de l'environnement) entered into force.58 Decree No 2012-633 modified article R. 516-1 to extend the requirement for mandatory financial security to additional ICPE facilities including facilities that were subject to simplified authorisation (registration) requirements under article L. 512-7 of the Environmental Code if they were

55 See Fieldfisher LLP, ‘Environmental permits and impact assessments in France’ (2 January 2019); https://www.lexology.com/library/detail.aspx?g=ab518c39-8af4-47e6-adfc-b8923d6d43c7

56 See Ministère de la Transition Ecologique, ‘Les Risques industrials: une mission de protection pour les populations et environment, Bilan 2018, perspectives 2019’ (2018 figures)

57 See David Desforges, ‘France: Environment & Climate Change Law 2019’ (4 February 2019), s 5.4; https://iclg.com/practice-areas/environment-and-climate-change-laws-and-regulations/france; article L.512-21, R.512-76 et seq

58 Décret No 2012-633 du 3 mai 2012 relatif à l'obligation de constituer des garanties financières en vue de la mise en sécurité de certaines installations classées pour la protection de l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000025801785&categorieLien=id (in French)

https://www.lexology.com/library/detail.aspx?g=ab518c39-8af4-47e6-adfc-b8923d6d43c7




30

likely, due to the nature of the quantity of materials and waste at them, to cause significant land/soil or water pollution.

When this report was published, the following ICPE facilities were subject to the mandatory financial security requirements under article R. 516-1 of the Environmental Code:

waste storage facilities including landfills but excluding facilities for the storage of inert waste;

quarries;

Seveso III installations (high level only);

facilities for the storage of carbon dioxide; and

other ICPE facilities that are likely to cause significant land/soil or water pollution.

ICPE facilities in the last category are those that exceed specified threshold amounts and other criteria such as the nature of the materials and waste at them.

An exception to the requirement for mandatory financial security exists for ICPE facilities operated directly by the State. There is a further exception for ICPE facilities if the amount of the financial guarantee is less than EUR 100,000.

An authorisation for an ICPE facility that is subject to the above financial security requirements may not be transferred to a new operator unless the prefect approves the transfer after ensuring that the new operator satisfies, among other things, the financial security requirements.59

The financial security must cover measures to respond to an accident or pollution. It must also cover measures to monitor and maintain the safety of the ICPE facility if there is an exceptional event that is likely to affect the environment.

The financial security instrument or mechanism must be for at least two years or the pendency of the permit for the ICPE facility, whichever is longer. If a financial security instrument or mechanism will not be renewed, the operator must notify the relevant competent authority at least three months before the date for expiration.

None of the relevant legislative provisions concerning mandatory financial security for ICPE facilities refer to the ELD or the legislation that implements it in France.


Article R. 516-2 of the Environmental Code sets out the following types of financial security instruments and mechanisms as being acceptable:

a written undertaking from a credit institution, insurance undertaking or mutual guarantee company (l'engagement écrit d'un établissement de crédit, d'une entreprise d'assurance ou d'une société de caution mutuelle);

a deposit to the Caisse des dépôts et consignations;

in respect of waste storage facilities, a guarantee fund managed by the Environment and Energy Management Agency (un fonds de garantie géré par l'Agence de l'environnement et de la maîtrise de l'énergie);

59 See Fieldfisher LLP, ‘Environmental permits and impact assessments in France’ (2 January 2019); https://www.lexology.com/library/detail.aspx?g=ab518c39-8af4-47e6-adfc-b8923d6d43c7; Vincent Brenot, ‘Environmental law and practice in France: overview’ (1 November 2015); https://uk.practicallaw.thomsonreuters.com/7-503-4572?transitionType=Default&contextData=(sc.Default)&firstPage=true#co_anchor_a45627


https://uk.practicallaw.thomsonreuters.com/7-503-4572?transitionType=Default&contextData=(sc.Default)&firstPage=true#co_anchor_a45627



31

a private guarantee fund for a sector provided its adequate financial capacity is defined by order of the Minister in charge of classified installations; and

a written undertaking that bears an autonomous guarantee within the meaning of article 2321 of the Civil Code of a natural person or of a legal person that owns over half of the operator’s capital or that controls the operator in respect of the criteria set out in article L. 233-3 of the Commercial Code (in which case the guarantor must be the beneficiary of a written undertaking specified in the first bullet point above, a guarantee fund also indicated above, or have made a deposit in the Caisse des dépôts et consignations).

13.1.4. Templates

See section 11.1.3 above.


There is no list of financials security instruments or mechanisms that are not acceptable.

13.2. Seveso III Directive


The Seveso III Directive is implemented in France by the following legislation:

Law No 2013-619 of July 16, 2013 bearing various provisions of adaptation to the European Union law in the field of sustainable development (Loi No 2013-619 du 16 juillet 2013 portant diverses dispositions d'adaptation au droit de l'Union européenne dans le domaine du développement durable);60

Decree No 2014-284 of March 3, 2014 amending Title I of Book V of the Environment Code (Décret No 2014-284 du 3 mars 2014 modifiant le titre Ier du livre V du code de l'environnement);61

Decree No 2014-285 of March 3, 2014 amending the nomenclature of classified installations for the protection of the environment (Décret No 2014-285 du 3 mars 2014 modifiant la nomenclature des installations classées pour la protection de l'environnement);62 and

Decree No 2015-1652 of December 11th, 2015 modifying the provisions relating to the particular plans of intervention taken pursuant to the article L. 741-6 of the code of the internal security (Décret No 2015-1652 du 11 décembre 2015 modifiant les dispositions relatives aux plans particuliers d'intervention prises en application de l'article L. 741-6 du code de la sécurité intérieure).63

60 Loi No 2013-619 du 16 juillet 2013 portant diverses dispositions d'adaptation au droit de l'Union européenne dans le domaine du développement durable; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027713399&categorieLien=id (in French)

61 Décret No 2014-284 du 3 mars 2014 modifiant le titre Ier du livre V du code de l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000028680929&categorieLien=id (in French)

62 Décret No 2014-285 du 3 mars 2014 modifiant la nomenclature des installations classées pour la protection de l'environnement; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000028680960&categorieLien=id (in French)

63 Décret No 2015-1652 du 11 décembre 2015 modifiant les dispositions relatives aux plans particuliers d'intervention prises en application de l'article L. 741-6 du code de la sécurité intérieure; https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000031602042&categorieLien=id (in French)






32

The competent authority is the Ministry for the Ecological and Inclusive Transition, more specifically the General Directorate for Risk Prevention. The Inspectorate of Classified Installations also has responsibilities under the above legislation. Further, the prefect issues environmental permits.64

Seveso sites as subject to ICPE (see also section 11.1.1 above).


Article R. 516-2 of the Environmental Code sets out financial security provisions (see section 11.2.2 above). In addition, the prefect may request the operator to submit an additional financial guarantee to cover measures to respond to a significant accident that causes land/soil or groundwater pollution if the measures would be subject to technical constraints linked to the operation of the facility or because they would have a disproportionate effect on the operations at the facility.

The financial security must cover measures to respond to an accident or pollution. It must also cover measures to monitor and maintain the safety of the ICPE facility if there is an exceptional event that is likely to affect the environment.


Financial security is required for ICPE facilities that are subject to the Seveso III Directive. See sections 13.1.1 and 13.1.2 above for details.

13.2.4. Templates

See section 11.1.3 above.


There is no list of financial security instruments and mechanisms that are not acceptable.

13.3. Other legislation

See section 13.1.1 above for the ICPE facilities that are subject to mandatory financial security requirements. None of the legislative provisions concerning mandatory financial security refers to the ELD or the legislation that implements it in France.

14. MANDATORY FINANCIAL SECURITY FOR OFFSHORE OIL AND GAS OPERATIONS


The competent authority for licensing offshore oil and gas operations in France is the Ministry for the Ecological and Inclusive Transition.

64 See Minister of the Environment, Energy and the Sea, ‘L’autorisation environnementale: des démarches simplifiées, des projets sécurisés’; https://www.ecologique-solidaire.gouv.fr/sites/default/files/L%E2%80%99autorisation%20environnementale.pdf (in French)

https://www.ecologique-solidaire.gouv.fr/sites/default/files/L%E2%80%99autorisation%20environnementale.pdf



33

14.2. Status of offshore oil and gas operations

France has carried out operations to explore offshore oil and gas. Most of the operations are not carried out in the continental shelf of the French mainland but are carried out in France’s overseas territories.65

Law No 2017-1839 of 30 December 2017 to end hydrocarbon research and exploitation and to lay down various provisions relating to energy and the environment provides for the phasing out of hydrocarbon exploration and production activities. Operating concessions will cease by 31 December 2039; none will be renewed for any operations after 1 January 2040.66

14.3. Requirements for financial security

The applicant for an exploration and exploitation licence is required to provide evidence of financial security to show that it is able to meet the obligations of the licence. Also see section 14.2 above.

14.4. Requirement for financial security for ELD liabilities

There are no requirements for financial security for ELD liabilities in licences for the exploration and exploitation of offshore oil and gas. Also see section 14.2 above.

15. FAILURE OF FINANCIAL SECURITY

15.1. Inadequate level of financial security instrument or mechanism to pay claims

No incidents were reported in which the level of a financial security instrument or mechanism was inadequate to pay to prevent or remediate environmental damage with the caveat that such reports and not necessarily made public.

15.2. Insolvency of operator leading to failure of financial security instrument or mechanism

No reports of the insolvency of an operator that lead to failure of a financial security instrument or mechanism had been identified when this report was published, with the caveat that such reports are not necessarily made public.

Article L. 512-17 of the Environmental Code and article L. 233-5-1 of the Commercial Code (Code de Commerce) (known together as the Grenelle 2 law) provide that, in specified cases in which there is a characterised fault of the parent company, the parent company of an insolvent subsidiary may be liable for complying with obligations under environmental legislation such as remediating pollution.

65 See Bio by Deloitte and Stevens & Bolton LLP, ‘Civil liability, financial security and compensation claims for offshore oil and gas activities in the European Economic Area; France’ (31 October 2014), 295, 295; https://ec.europa.eu/energy/sites/ener/files/documents/BIO_Offshore%20Civil%20Liability_Revised%20Final%20Report%20%2831102014%29.pdf

66 See Thierry Lauriol and Martin Tavaut, ‘France: Oil & Gas Regulation 2020’ (ICLG, 3 January 2020), 3.2.1; https://iclg.com/practice-areas/oil-and-gas-laws-and-regulations/france

https://ec.europa.eu/energy/sites/ener/files/documents/BIO_Offshore%20Civil%20Liability_Revised%20Final%20Report%20%2831102014%29.pdf


https://iclg.com/practice-areas/oil-and-gas-laws-and-regulations/france


34

The Grenelle 2 law was enacted following the liquidation of Metaleurop Nord, which operated a Seveso II facility that had become highly polluted. Metaleurop S.A., the parent company, did not contribute to the remediation of its subsidiary’s facility despite demands that it do so.67

15.3. Other

There were no public reports of other failures of voluntary or mandatory financial security in France when this report was published.

A key reason for the growth of mandatory financial security in France in 2012 (see section 13.1.2 above) was a large fire in a waste storage facility in Limeil-Brévannes in 2011. The waste at the facility was nearly 25 metres high and stretched for over 200 metres near an eco-neighbourhood that was under construction. The French Government subsequently took measures to recover costs arising from the fire from companies that had arranged for the deposit of waste at the site.68

16. FUNDS

France has not established a fund for the costs of preventing or remediating environmental damage if the liable operator becomes insolvent or cannot otherwise pay the costs.

16.1. Name(s)

Not applicable

16.2. Extension of existing fund to cover remedial costs under the ELD

France has not extended any existing fund to cover remedial (or preventive) costs under the ELD.

The Environment and Energy Management Agency (agence de l’environnement et del a maitrise de l’énergie; l’ademe) may fund remediation operations at orphan sites (sites orphelins).69

16.3. Purpose

Not applicable

16.4. Type

Not applicable

16.5. Source(s) of funding

Not applicable

67 See Legal News, ‘Metaleurop Nord: la liquidation ne sera pas étendue à la maison mère’ (12 October 2005); http://legalnews.fr/index.php?option=com_content&id=1090 (in French). The judgment is at https://www.legifrance.gouv.fr/affichJuriJudi.do?idTexte=JURITEXT000007050495 (in French)

68 See Val-de-Marne: NKM lance les travaux d'évacuation de la montagne de déchets (5 September 2011); http://www.leparisien.fr/val-de-marne-94/val-de-marne-nkm-lance-les-travaux-d-evacuation-de-la-montagne-de-dechets-05-09-2011-1593339.php (in French)

69 See Agence de l’environnement et del a maitrise de l’énergie; https://www.ademe.fr/expertises/sols-pollues (in French)

http://legalnews.fr/index.php?option=com_content&id=1090

https://www.legifrance.gouv.fr/affichJuriJudi.do?idTexte=JURITEXT000007050495

http://www.leparisien.fr/val-de-marne-94/val-de-marne-nkm-lance-les-travaux-d-evacuation-de-la-montagne-de-dechets-05-09-2011-1593339.php


https://www.ademe.fr/expertises/sols-pollues


35

16.6. Number and amount of claims

Not applicable


36

BIBLIOGRAPHY

European Union

Reports

EU Environmental Implementation Review 2019; Country Report – France (SWD(2019) 120 final, 4 April 2019); https://ec.europa.eu/environment/eir/pdf/report_fr_en.pdf

EU Environmental Implementation Review 2017; Country Report – France (SWD(2017) 44 final, 3 February 2017); https://ec.europa.eu/environment/eir/pdf/country-reports-archive/report_fr_en.pdf

France

Legislation

Decree No 2015-1652 of December 11th, 2015 modifying the provisions relating to the particular plans of intervention taken pursuant to the article L. 741-6 of the code of the internal security (Décret No 2015-1652 du 11 décembre 2015 modifiant les dispositions relatives aux plans particuliers d'intervention prises en application de l'article L. 741-6 du code de la sécurité intérieure); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000031602042&categorieLien=id

Decree No 2014-285 of March 3, 2014 amending the nomenclature of classified installations for the protection of the environment (Décret No 2014-285 du 3 mars 2014 modifiant la nomenclature des installations classées pour la protection de l'environnement); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000028680960&categorieLien=id

Decree No 2014-284 of March 3, 2014 amending Title I of Book V of the Environment Code (Décret No 2014-284 du 3 mars 2014 modifiant le titre Ier du livre V du code de l'environnement); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000028680929&categorieLien=id

Decree No 2013-375 of 2 May 2013 modifying the nomenclature of classified installations (Décret No 2013-375 du 2 mai 2013 modifiant la nomenclature des installations classes); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027385534&categorieLien=id

Decree No 2013-374 of 2 May 2013 transposing the general provisions and Chapter II of Directive 2010/75 / EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (Décret No 2013-374 du 2 mai 2013 portant transposition des dispositions générales et du chapitre II de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution)); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027385498&categorieLien=id

Decree No 2012-633 of 3 May 2012 on the obligation to provide financial guarantees for the security of certain classified installations for the protection of the environment (Décret No 2012-633 du 3 mai 2012 relatif à l'obligation de constituer des garanties financières en vue de la mise en sécurité de certaines installations classées pour la protection de

https://ec.europa.eu/environment/eir/pdf/report_fr_en.pdf














37

l'environnement); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000025801785&categorieLien=id

Decree No 2012-615 of 2 May 2012 on the safety, authorisation and declaration of public utility of pipelines for the transport of gas, hydrocarbons and chemicals (Décret No 2012-615 du 2 mai 2012 relatif à la sécurité, l'autorisation et la déclaration d'utilité publique des canalisations de transport de gaz, d'hydrocarbures et de produits chimiques); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000025794106&categorieLien=id

Decree No 2011-1411 of 31 October 2011 on the geological storage of carbon dioxide to combat global warming (Décret No 2011-1411 du 31 octobre 2011 relatif au stockage géologique de dioxyde de carbone afin de lutter contre le réchauffement climatique; Decree 2011-1411); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000024738062&categorieLien=id

Decree No 2011-220 of 25 February 2011 on special action plans concerning waste management in the extractive industry (Décret No 2011-220 du 25 février 2011 relatif aux plans particuliers d'intervention concernant la gestion des déchets de l'industrie extractive); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000023646057&categorieLien=id

Decree No 2010-1394 of 12 November 2010 on the requirements applicable to certain mining operations and installations for the management of inert waste and unpolluted land resulting from their operation (Décret No 2010-1394 du 12 novembre 2010 relatif aux prescriptions applicables à certaines exploitations de mines et aux installations de gestion de déchets inertes et des terres non polluées résultant de leur fonctionnement); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000023081467&categorieLien=id

Decree No 2010-1389 of 12 November 2010 on the obligation to provide financial guarantees prior to the opening of research or mining operations (Décret No 2010-1389 du 12 novembre 2010 relatif à l'obligation de constituer des garanties financières avant l'ouverture de travaux de recherche ou d'exploitation de mines); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000023081203&categorieLien=id

Decree No 2010-1172 of 5 October 2010 modifying the article R. 516-2 of the code of the environment (Décret No 2010-1172 du 5 octobre 2010 modifiant l'article R. 516-2 du code de l'environnement; Decree No 2010-1172); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022893885&categorieLien=id

Decree No 2010-369 of 13 April 2010 amending the classification of classified installations (Décret No 2010-369 du 13 avril 2010 modifiant la nomenclature des installations classes); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022092730&categorieLien=id

Decree No 2009-468 of 23 April 2009 on the prevention and remedying of certain damage to the environment (Décret No 2009-468 du 23 avril 2009 relatif à la prévention et à la réparation de certains dommages causés à l'environnement); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000020553030&categorieLien=id




















38

Decree No 2006-302 of 15 March 2006 adopted for the application of Article L. 541-30-1 of the Environment Code relating to inert waste storage facilities (Décret No 2006-302 du 15 mars 2006 pris pour l'application de l'article L. 541-30-1 du code de l'environnement relatif aux installations de stockage de déchets inertes); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000456881&categorieLien=id

Decree No 2005-635 of 30 May 30 2005 relating to the control of the circuits of treatment of the waste (Décret No 2005-635 du 30 mai 2005 relatif au contrôle des circuits de traitement des déchets); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000257088&categorieLien=id

Decree of 30 December 2002 on the storage of hazardous waste (Arrêté du 30 décembre 2002 relatif au stockage de déchets dangereux); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000236168&categorieLien=id

Decree No 93-1410 of 29 December 1993 establishing the rules for the exercise of the right to information in relation to waste provided for in art. 3-1 of the law of 15-07-1975 (Décret No 93-1410 du 29 décembre 1993 fixant les modalités d'exercice du droit à l'information en matière de déchets prévues à l'article 3-1 de la loi du 15 juillet 1975); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000700494&categorieLien=id

Environmental Code (Code de l'Environnement); https://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT000006074220

Law No 2017-1839 of 30 December 2017 to end hydrocarbon research and exploitation and to lay down various provisions relating to energy and the environment (Loi No 2017-1839 de 30 decembre 2017 mettant fin à la recherche ainsi qu'à l'exploitation des hydrocarbures et portant diverses dispositions relatives à l'énergie et à l'environnement); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000036339396&dateTexte=20200127

Law No 2016-1087 of 8 August 2016 for the restoration of biodiversity, nature and landscape (Loi No 2016-1087 du 8 août 2016 pour la reconquête de la biodiversité, de la nature et des paysages); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000033016237&categorieLien=id

Law No 2013-619 of July 16, 2013 bearing various provisions of adaptation to the European Union law in the field of sustainable development (Loi No 2013-619 du 16 juillet 2013 portant diverses dispositions d'adaptation au droit de l'Union européenne dans le domaine du développement durable); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027713399&categorieLien=id

Law No 2011-835 of 13 July 2011 prohibiting the exploration and production of mines of liquid or gaseous hydrocarbons by hydraulic fracturing and repealing exclusive research licences for projects using this technique (Loi No 2011-835 du 13 juillet 2011 visant à interdire l'exploration et l'exploitation des mines d'hydrocarbures liquides ou gazeux par fracturation hydraulique et à abroger les permis exclusifs de recherches comportant des projets ayant recours à cette technique);









https://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT000006074220








39


Law No 2010-788 of 12 July 2010 on national commitment for the environment (1) (Loi No 2010-788 du 12 juillet 2010 portant engagement national pour l'environnement (1)); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022470434&categorieLien=id

Law No 2008-757 of 1st August 2008 on environmental liability (Loi No 2008-757 du 1er août 2008 relative à la responsabilité environnementale et à diverses dispositions d'adaptation au droit communautaire dans le domaine de l'environnement); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000019277729&dateTexte=20191216

Law No 76-663 of 19 July 1976 (Loi No 76-663 du 19 juillet 1976 relative aux installations classées pour la protection de l'environnement) (repealed); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000000684771&categorieLien=cid

Order of 24 September 2013 on the general requirements applicable to installations covered by the registration procedure under heading No 2910-B of the nomenclature of classified installations for the protection of the environment (Arrêté du 24 septembre 2013 relatif aux prescriptions générales applicables aux installations relevant du régime de l'enregistrement au titre de la rubrique No 2910-B de la nomenclature des installations classées pour la protection de l'environnement); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000028071164&categorieLien=id

Order of 26 August 2013 relating to combustion plants with a capacity of 20 MW or more subject to authorization under heading 2910 and item 2931 (Arrêté du 26 août 2013 relatif aux installations de combustion d'une puissance supérieure ou égale à 20 MW soumises à autorisation au titre de la rubrique 2910 et de la rubrique 2931); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027995928&categorieLien=id

Order of 2 May 2013 on the definitions, list and criteria of Directive 2010/75 / EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (Arrêté du 2 mai 2013 relatif aux définitions, liste et critères de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution)); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027385591&categorieLien=id

Order of 2 May 2013 amending the Decree of 15 December 2009 setting certain thresholds and criteria mentioned in Articles R. 512-33, R. 512-46-23 and R. 512-54 of the Environment Code (Arrêté du 2 mai 2013 modifiant l'arrêté du 15 décembre 2009 fixant certains seuils et critères mentionnés aux articles R. 512-33, R. 512-46-23 et R. 512-54 du code de l'environnement); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027385581&categorieLien=id

Order of 28 February 2013 transposing Chapters V and VI of Directive 2010/75 / EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (Arrêté du 28 février 2013 portant


















40

transposition des chapitres V et VI de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution)); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000027287073&categorieLien=id

Order of 18 December 2012 amending the decree of 20 September 2002 concerning incineration and co-incineration facilities for non-hazardous waste and facilities incinerating waste from infectious risk care activities and the order of 20 September 2002 on incineration and co-incineration installations for hazardous waste (Arrêté du 18 décembre 2012 modifiant l'arrêté du 20 septembre 2002 relatif aux installations d'incinération et de co-incinération de déchets non dangereux et aux installations incinérant des déchets d'activités de soins à risques infectieux et l'arrêté du 20 septembre 2002 relatif aux installations d'incinération et de co-incinération de déchets dangereux); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000026856084&categorieLien=id

Order of 23 July 2010 relating to boilers in combustion plants with a thermal power greater than or equal to 20 MWth authorized or modified as from 1 November 2010 (Arrêté du 23 juillet 2010 relatif aux chaudières présentes dans les installations de combustion d'une puissance thermique supérieure ou égale à 20 MWth autorisées ou modifiées à compter du 1er novembre 2010); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022818485&categorieLien=id

Order of 5 May 2010 amending the decree of September 22, 1994 relative to quarry operations and facilities for the first treatment of quarry materials to take into account the provisions of the European directive concerning the management of waste from the extractive industry (Arrêté du 5 mai 2010 modifiant l'arrêté du 22 septembre 1994 relatif aux exploitations de carrières et aux installations de premier traitement des matériaux de carrière pour la prise en compte des dispositions de la directive européenne concernant la gestion des déchets de l'industrie extractive); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022743640&categorieLien=id

Order of 19 April 2010 on the management of waste from the extractive industries (Arrêté du 19 avril 2010 relatif à la gestion des déchets des industries extractives); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022673160&categorieLien=id

Order of 18 July 2007 amending the amended Order of 9 September 1997 on non-hazardous waste storage facilities (Arrêté du 18 juillet 2007 modifiant l'arrêté du 9 septembre 1997 modifié relatif aux installations de stockage de déchets non dangereux); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000467257&categorieLien=id

Order of 30 October 2006 setting the content of the registers mentioned in Article 2 of Decree No. 2005-635 of 30 May 2005 on the control of waste treatment circuits and the form of the radioactive waste monitoring slip mentioned in Article 4 (Arrêté du 30 octobre 2006 fixant le contenu des registres mentionnés à l'article 2 du décret No 2005-635 du 30 mai 2005 relatif au contrôle des circuits de traitement des déchets et le formulaire du bordereau de suivi des déchets radioactifs mentionné à l'article 4); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000788447&categorieLien=id
















41

Order of 15 March 2006 setting out the list of types of inert waste eligible for inert waste storage facilities and the operating conditions of these facilities (Arrêté du 15 mars 2006 fixant la liste des types de déchets inertes admissibles dans des installations de stockage de déchets inertes et les conditions d'exploitation de ces installations); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000266389&categorieLien=id

Order of 7 November 2005 on the annual declaration to the administration of inert waste storage facilities mentioned in Article 5 of Decree No. 2005-635 of 30 May 2005 (Arrêté du 7 novembre 2005 relatif à la déclaration annuelle à l'administration des installations de stockage de déchets inertes mentionnée à l'article 5 du décret n° 2005-635 du 30 mai 2005); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000263750&categorieLien=id

Order of 7 July 2005 fixing the content of the registers referred to in Article 2 of Decree No. 2005-635 of 30 May 2005 on the control of waste treatment circuits and concerning hazardous waste and non-hazardous or radioactive waste (Arrêté du 7 juillet 2005 fixant le contenu des registres mentionnés à l'article 2 du décret n° 2005-635 du 30 mai 2005 relatif au contrôle des circuits de traitement des déchets et concernant les déchets dangereux et les déchets autres que dangereux ou radioactifs); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000812365&categorieLien=id

Order of 31 December 2004 on inert industrial waste storage facilities from classified installations (Arrêté du 31 décembre 2004 relatif aux installations de stockage de déchets industriels inertes provenant d'installations classes); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000607028&categorieLien=id

Order of 3 April 2002 amending the Order of 31 December 2001 amending the Decree of 9 September 1997 on existing landfills and new storage facilities for household and similar waste (Arrêté du 3 avril 2002 modifiant l'arrêté du 31 décembre 2001 modifiant l'arrêté du 9 septembre 1997 relatif aux décharges existantes et aux nouvelles installations de stockage de déchets ménagers et assimilés); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000778114&categorieLien=id

Order of 31 December 2001 amending the order of 9 September 1997 on existing landfills and new storage facilities for household and similar waste (Arrêté du 31 décembre 2001 modifiant l'arrêté du 9 septembre 1997 relatif aux décharges existantes et aux nouvelles installations de stockage de déchets ménagers et assimilés); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000328293&categorieLien=id

Order of 9 September 1997 on existing landfills and new facilities for the storage of household and similar waste (Arrêté du 9 septembre 1997 relatif aux décharges existantes et aux nouvelles installations de stockage de déchets ménagers et assimilés); https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=41A5A8F5B6D480A122C48B4509BE8FC5.tplgfr27s_3?cidTexte=JORFTEXT000000568897&categorieLien=id

Order of 18 December 1992 on the storage of certain final and stabilised special industrial waste for new installations (Arrêté du 18 décembre 1992 relatif au stockage de certains déchets industriels spéciaux ultimes et stabilisés pour les installations nouvelles);
















42


Ordinance No 2012-7 of 5 January 2012 transposing Chapter II of Directive 2010/75 / EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (Ordonnance No 2012-7 du 5 janvier 2012 portant transposition du chapitre II de la directive 2010/75/UE du Parlement européen et du Conseil du 24 novembre 2010 relative aux émissions industrielles (prévention et réduction intégrées de la pollution)); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000025104955&categorieLien=id

Ordinance No 2010-1579 of 17 December 2010 on various provisions for adaptation to European Union law in the field of waste (Ordonnance No 2010-1579 du 17 décembre 2010 portant diverses dispositions d'adaptation au droit de l'Union européenne dans le domaine des déchets); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000023246129&categorieLien=id

Ordinance No 2010-1232 of 21 October 2010 on various adaptation provisions to European Union environmental law (Ordonnance No 2010-1232 du 21 octobre 2010 portant diverses dispositions d'adaptation au droit de l'Union européenne en matière d'environnement; Ordinance 2010-1232); https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000022934766&categorieLien=id

Guidance

Commissariat général au développement durable (CGDD) du Ministère de l’Écologie, du Développement durable et de l'énergie (MEDDE), La loi responsabilité environnementale et ses méthodes d’équivalence Guide méthodologique (2012); https://ec.europa.eu/environment/legal/liability/pdf/eld_guidance/french_guide.pdf

Case

Cour de cassation, chambre commerciale; Audience publique du mardi 19 avril 2005, No de pourvoi: 05-10094; https://www.legifrance.gouv.fr/affichJuriJudi.do?idTexte=JURITEXT000007050495

Reports

Agence de l’environnement et del a maitrise de l’énergie; https://www.ademe.fr/expertises/sols-pollues

Ministère de la Transition Ecologique, ‘Les Risques industrials: une mission de protection pour les populations et environment, Bilan 2018, perspectives 2019’

Minister of the Environment, Energy and the Sea, ‘L’autorisation environnementale: des démarches simplifiées, des projets sécurisés’; https://www.ecologique-solidaire.gouv.fr/sites/default/files/L%E2%80%99autorisation%20environnementale.pdf

Articles and reports

Assurpol, ‘Adhérents’; http://www.assurpol.fr/fr/presentation/adherents

Assurpol, ‘Assurpol en bref’; http://www.assurpol.fr/fr/presentation/assurpol-en-bref









https://ec.europa.eu/environment/legal/liability/pdf/eld_guidance/french_guide.pdf

https://www.legifrance.gouv.fr/affichJuriJudi.do?idTexte=JURITEXT000007050495

https://www.ademe.fr/expertises/sols-pollues



http://www.assurpol.fr/fr/presentation/adherents

http://www.assurpol.fr/fr/presentation/assurpol-en-bref


43

Bio by Deloitte and Stevens & Bolton LLP, ‘Civil liability, financial security and compensation claims for offshore oil and gas activities in the European Economic Area; France’ (31 October 2014); https://ec.europa.eu/energy/sites/ener/files/documents/BIO_Offshore%20Civil%20Liability_Revised%20Final%20Report%20%2831102014%29.pdf

Brenot, Vincent, ‘Environmental law and practice in France: overview’ (1 November 2015); https://uk.practicallaw.thomsonreuters.com/7-503-4572?transitionType=Default&contextData=(sc.Default)&firstPage=true#co_anchor_a45627

Desforges, David, ‘France: Environment & Climate Change Law 2019’ (4 February 2019), s 11.2; https://iclg.com/practice-areas/environment-and-climate-change-laws-and-regulations/france

Fieldfisher LLP, ‘Environmental permits and impact assessments in France’ (2 January 2019); https://www.lexology.com/library/detail.aspx?g=ab518c39-8af4-47e6-adfc-b8923d6d43c7

French Insurance Association, ‘Le préjudice écologique et l’assurance des entreprises’ (28 January 2019); https://www.ffa-assurance.fr/infos-assures/le-prejudice-ecologique-et-assurance-des-entreprises

Lauriol, Thierry, and Martin Tavaut, ‘France: Oil & Gas Regulation 2020’ (ICLG, 3 January 2020); https://iclg.com/practice-areas/oil-and-gas-laws-and-regulations/france

Legal News, ‘Metaleurop Nord: la liquidation ne sera pas étendue à la maison mère’ (12 October 2005); http://legalnews.fr/index.php?option=com_content&id=1090

Val-de-Marne: NKM lance les travaux d'évacuation de la montagne de déchets (5 September 2011); http://www.leparisien.fr/val-de-marne-94/val-de-marne-nkm-lance-les-travaux-d-evacuation-de-la-montagne-de-dechets-05-09-2011-1593339.php










https://iclg.com/practice-areas/oil-and-gas-laws-and-regulations/france

http://legalnews.fr/index.php?option=com_content&id=1090



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France - European Commission · France does not impose mandatory financial security for ELD liabilities. France does, however, impose mandatory financial security for many installations