France first member state to implement “Grandfathering clause” of the RED III directive

On the 21 of May the transposition deadline of Renewable Energy Directive (RED III) set in. The difference between RED III directive and the preceding RED II is the introduction of stronger sustainability criteria related to new harvesting criteria for forest biomass, GHG emission reduction thresholds, and the size of economic operators that can implement RED III requirements.

So far only Romania and Czechia have fully transposed new RED III quotas, with consultations ongoing in other member states, including the Netherlands and Germany. However, RED III also includes Article 29(15), a so-called grandfathering clause. This clause acts as a transition period and allows Member States to accept energy produced with RED II compliant biomass from power plants that meet the following two conditions.

1. Support was granted before 20 November 2023, in accordance with RED II criteria.
2. Support was granted as a long-term funding set at a fixed amount agreed at the start, with a safeguard in place to prevent any overcompensation.

The clause also applies to the suppliers of said installations, which is relevant for state forest organisations as the primary producers of forest biomass. The exception is wood waste and residues, both of which are not accepted.

So far, only France has decided to invoke this grandfathering clause. For all other countries applies that RED II compliant biomass fuel produced and stored before 21 May remains valid and can still be sold after 21 May. RED II compliant biomass fuel and any biomass fuel produced after 21 May must meet RED III criteria.

For a more detailed explanation, please check the PEFC website and how they implement these changes in their certification.