ENERGY SAVINGS CERTIFICATES. actions. cumac. rénovation. TWh90. cumac. energy. TWh255. savings. efficiency. Companies. Knowledge for action

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1 ENERGY SAVINGS CERTIFICATES actions 345 TWhcumac rénovation cumac energy savings efficiency TWh90 TWh255 cumac Companies Knowledge for action

2 TABLE OF CONTENTS A word from ADEME 3 PREAMBLE History of the ESC scheme and the main changes since start-up 4 / 5 Part I How Energy Savings Certificates work Main principles of the scheme What is the value of an ESC? Scope of actions 6 / / 11 Part 2 ESCs in support of energy management projects A financial tool A preliminary study is necessary Decision-making aids How can ESCs be converted? Glossary / PRACTICAL POINTERS Filing a claim for ESCs 18 / 19

3 A WORD FROM ADEME energy efficiency savings As fossil energy resources are depleted and the environmental impacts of their use are increasingly addressed, energy costs will continue to rise. In this context it is vital for businesses in the service sector, industry or agriculture to take steps now to start managing their energy consumption. A number of tools and mechanisms are currently being implemented to help companies in this process, at the national and European levels. Among these, Energy Savings Certificates (ESCs) were introduced in France by the Energy Policy Law of 13 July 2005, with the aim of achieving energy savings in sectors of dispersed activity, mainly buildings, but also light industry, agriculture and transport. For businesses this mechanism is an additional financial leverage tool that can be used to support their energy management projects. Under this scheme energy suppliers must promote energy-efficient investments, and thus are potential sources of financing for project owners. to renovate existing building stock. In order to achieve the ambitious goals that have been set, the financial mechanisms put into place, including the ESC scheme, must be amplified. Following the first conclusive test period ( ), the ESC scheme is being ramped up during a second and more ambitious three-year period that began on 1 January The present document is intended to inform companies of changes in the ESC scheme to be implemented for the second period covering This guidance is divided into two parts: the first section describes the principles of the ESC scheme, and the second offers advice to companies that want to use this scheme for an energy management project. You will also find a practical information sheet listing all the steps to be taken to submit an ESC claim. The Grenelle environmental conference forcefully reiterated the need to take action, in particular Energy Savings Certificates / 3

4 PrEamble HISTORY OF THE ESC SCHEME AND THE MAIN CHANGES SINCE START-UP st period Target 54 TWh cumac 65.2 TWh cumac 30 June 2009 The POPE legislation THE FIRST PERIOD OF THE ESC SCHEME > 1 JULY 2006 to 30 JUNE 2009 Prior to the Grenelle environmental conference, the basis for energy savings certificates was set forth in the Energy Policy Law (Loi de Programmation et d orientation de la politique énergétique, or POPE law of 13 July 2005) which required retail energy suppliers (of electricity, gas, district heating and cooling, home heating oil) to save energy by undertaking various measures targeting consumers. With 65.2 TWh cumac* of savings certified in the first period, the initial objective of 54 TWh cumac of energy savings certificates was largely exceeded for The ENE legislation THE SECOND PERIOD OF THE ESC SCHEME > 1 JANUARY 2011 to 31 DECEMBER 2013 The National Commitment to the Environment law (Engagement National pour l Environnement, or ENE law of July 2010) stipulated the implementation of the second period of the ESC scheme, from 1 January 2011 to 31 December The obligations set for this second period amount to 345 TWh cumac, i.e. 6.4 times more than during the first period, including 90 TWh cumac for automotive fuel distributors, who are now obligated parties under the scheme. *Accounting unit of the ESC scheme, cumulative and discounted savings. TRANSITION PERIOD Prior to publication of the ENE legislation and regulations for its application in the Journal officiel, a transition period was set up, from 1 July 2009 to 31 December During this period obligated parties were not required to achieve energy savings targets, but they could continue to pursue energy efficiency projects and obtain ESC allowances for them under the same rules as during the first period. Insofar as the ESCs are valid for three periods, all the certificates issued during this transition period can be accounted for the second period. As of 31 December 2010 ESCs totalling TWh cumac had been issued: cumac for standard operations and 4.7 TWh cumac for special operations.

5 transition No requirements 2 nd period Target: 345 TWh cumac TWh cumac 31 December 2010 OVERVIEW OF THE MAIN CHANGES BETWEEN THE FIRST AND SECOND PERIODS Domain 1 st period 2 nd period Obligated parties Energy suppliers: electricity gas, district heating and cooling, home heating oil (all) Energy suppliers: electricity gas, district heating and cooling, home heating oil (sales > 500 m 3 ) Automotive fuel distributors Eligible parties Local authorities, companies Local authorities, national housing rehabilitation agency (ANAH), social housing authorities Mandatory target Claim for issuance of ESC 54 TWh cumac 345 TWh cumac, including 90 TWh for automotive fuel distributors 1 GWh cumac* minimum 20 GWh cumac* minimum Parties can submit a request for a lesser volume once a year. Eligible parties can group together to reach this threshold. No more than 12 months between the end of the operation and the filing of the claim. The obligated party must demonstrate its active and leading role prior to start-up of the operation. Energy savings operations Verification and penalties Standard operations Special operations Penal sanctions in event of non-compliance Standard operations Special operations (mandatory energy audit beforehand) Programmes (information, training, innovation, energy poverty) Energy savings action plan (approval issued by the National ESC Pole for no more than three years for a given set of measures) Administrative sanctions in event of non-compliance Creation of a National ESC Pole to review claims and verify compliance * The accounting unit of the ESC scheme is 1 kwh cumac. 1 GWh cumac = 1 million kwh cumac 1 TWh cumac = 1 billion kwh cumac Energy Savings Certificates / 5

6 Part 1 How Energy Savings Certificates work MAIN PRINCIPLES OF THE ESC SCHEME 2nd PERIOD (1 JANUARY DECEMBER 2013) 3 % 26 % 9 % 2 % 20 % BREAKDOWN OF MANDATORY SAVINGS BY TYPE OF ENERGY: Electricity Natural gas Liquefied petroleum gas Home heating oil District heating and cooling Automotive fuel 40 % WHO ARE THE OBLIGATED PARTIES? The obligated parties are some 40 major distributors of electricity, gas, district heating and cooling (e.g. EDF, GDF, CPCU), more than 2,000 distributors of home heating oil and some 40 automotive fuel distributors (oil companies and major retailers such as Total, BP, SIPLEC, etc.) who are subject to mandatory energy savings requirements totalling 345 TWh cumac (of which 90 TWh for automotive fuel distributors) over a second three-year period (1 January December 2013). The overall target of 345 TWh cumac for this second period is shared among these energy suppliers, the obligated parties, on the pro rata basis of their energy sales to final consumers. The obligated parties can meet their requirements in three ways: they can set up incentives to encourage their customers to invest in energyefficient equipment; these operations must be approved by public authorities (via the National ESC Pole); they can purchase ESCs on the market; they can themselves invest in eligible ESC projects and receive ESCs in return. PART 1

7 PART 1 ANAH social housing authorities local authorities WHO ARE THE ELIGIBLE PARTIES? The ESC scheme is also open to other participants local authorities, the national housing rehabilitation agency (Agence nationale de l habitat, ANAH) and social housing authorities called eligible parties, who can undertake energy savings operations and have them certified, thus creating the conditions for a market to buy and sell ESCs. Companies, that are no longer eligible as of the second period, can continue to obtain ESCs for their actions by establishing partnerships with obligated and eligible parties (see How can ESCs be valorized?, p. 16). During this second period of the ESC scheme a penalty of 0.02/kWh cumac is incurred by obligated parties who have not achieved their mandatory savings at the end of the three-year period. DIAGRAM OF THE SCHEME ADMINISTRATIVE AUTHORITY Issues ESCS Oversees the market Sets requirements and issues ESCs NON-OBLIGATED PARTIES called eligible parties Energy savings actions ESC market for sale of certificates FINAL CONSUMER OBLIGATED PARTIES ESC REQUIREMENTS Energy savings actions Energy Savings Certificates / 7

8 How Energy Savings Certificates work 255TWh cumac TWh90 cumac ESC (kwh cumac) = ANNUAL GAINS (kwh) x LIFESPAN (in years) x DISCOUNT COEFFICIENT kwh CUMAC, ACCOUNTING UNIT OF THE ESC SCHEME Energy savings targets and action are recorded in kwh cumac of final energy, cumac being the contraction of cumulative and actualized. Energy-saving materials, equipment and measures are characterized by the energy savings that they generate over the life of the operation: these are cumulative energy savings. A 4% discount coefficient is also applied; this discount is both financial (the ESC has an economic value) and technical (the baseline rises over time, and thereby the energy gains progressively depreciate). THE ONLINE REGISTRY ESCs are allocated via registration of kwh cumac in an account opened with the national online registry. This registry is maintained by an entrusted party (Locasystem) to whom this public service is delegated, and is accessible at the following address: The registry keeps records of ESCs issued and provides a marketplace for ESC buyers and sellers (account holders must declare themselves as buyer or seller ). The registry publishes the average sale price for ESCs traded among participants. PART 1

9 PART 1 WHAT IS THE VALUE OF AN ESC? By the obligation imposed on energy suppliers the ESC scheme creates demand and also creates costs for its participants, thus giving economic value to the certificates. The scheme introduces a market for private transactions where the value of ESCs is negotiated between obligated and eligible parties. In this context it is important to distinguish between: penalty costs: the penalty set by decree is currently 0.02/kWh cumac, the same as during the first period. This penalty is a payment in full discharge of obligations that the obligated party must pay at the end of the second period (31 December 2013) if the party has not met its individual obligation; registry market price: the registry service publishes on its website the average sale price for ECSs traded between participants enrolled with the registry. These transactions take place between account holders, declared as buyers and sellers with the registry. This value can serve as a reference for sale of ESCs; financial support for a project owner: to trigger investments that qualify for ESC allowances, obligated parties can offer their customers (individual consumers, companies, local authorities) a financial advantage, such as a subsidy or bonus, credit on invoices, a preferential rate on bank loans, etc. This contribution to investment, that will benefit the customer, is negotiated in the framework of a partnership established beforehand (see. How can ESCs be valorized?, pp. 16/17). These dealings are privately negotiated, without going through the registry. PARTICIPANTS IN THE ESC SCHEME The ESC scheme is implemented by the Directorate General for Energy and Climate (DGEC) of the Ministry of Ecology, Sustainable Development and Energy. The National ESC Pole (Pôle national CEE or PNCEE) created on 1 October 2011 reviews and appraises ESC filings, verifies operations and applies penalties as the case may be. The public authorities have taken steps to elaborate and apply the ESC mechanism in association with actors in the economy. These stakeholders are represented by the Association Technique Energie Environnement (ATEE) that groups energy suppliers, energy service companies, equipment manufacturers, engineering and technical consulting firms, local authorities and district heating networks. Among other tasks, ATEE is in charge of periodically drafting proposals for new information sheets on standard energy savings operations for the ministry. Various missions have been entrusted to ADEME for implementation of the scheme, from technical expertise to evaluation of the mechanism s impacts. ADEME also informs and advises participants and provides guidance on how to follow procedures under the scheme. Energy Savings Certificates / 9

10 How Energy Savings Certificates work SCOPE OF ACTIONS To help participants carry out energy-saving actions, an official catalogue of basic measures, described in Standard Operations information sheets, has been drawn up with actors in the field and published by ministerial order in the French Journal Officiel. As of 1 December 2012, this list included 270 standard measures that are each assigned a predetermined allowance of kwh cumac for ESC purposes. These measures apply for the most part to energy consumption in existing buildings, and to a lesser extent to energy consumption in industry, agriculture and transport. The list can be updated and completed by administrative order. Each information sheet outlines average energy savings in kwh cumac calculated for the operation, reflecting the gains obtained with reference to a baseline situation. For example, installing a low-energy lamp is worth 190 kwh cumac. Insulation of attic spaces gives allowances of 400 to 1,900 kwh cumac per m 2 of insulation installed, depending on the geographic location, type of housing and heating energy used. Purchase of a condensation boiler for a singlefamily house generates between 74,000 and 120,000 kwh cumac in allowances, depending on the case. The flat-rate values do not precisely reflect the savings achieved under each operation but represent an average savings reference figure. ESC allowances can also be obtained for actions other than those included in the Standard Operations list: these are known as nonstandard or special operations. 270 STANDARD OPERATIONS WITH PREDETERMINED ALLOWANCES in kwh CUMAC SECToR NUMBER OF CARD OPERATIONS SHEETS Residential buildings 77 building insulation, heating and sanitary hot water, lighting, domestic appliances, etc. Commercial/service sector buildings 104 building insulation, heating and sanitary hot water, lighting, etc. Industry 30 lighting, electrical devices (motors, compressors), boiler economizer Networks 15 heating networks, street lighting Transport 25 fuel-efficient tyres, fuel-efficient driving, river-road modal transport unit, etc. Agriculture 19 hot-water storage tanks (greenhouses), milk pre-cooler, etc. Link to standard operations information sheets: PART 1

11 PART 1 The National ESC Pole appraises each operation according to the rules in effect when the request for ESC allowances is filed, relying on expert advice from ADEME if needed. To ensure that requests are properly drafted and to optimize the appraisal process, methodological guidance was published during the second ESC period to help project initiators and decisionmakers establish their claims for special operations. ESC allowances can also be obtained via financial contributions to programmes designed to reduce energy consumption for poor households, and to programmes for information, training and innovation related to energy management. The list of eligible programmes is drawn up by the ministry in charge of energy. ELSEWHERE IN EUROPE The United Kingdom was the first country to set up an Energy Savings Certificates scheme, starting in Having achieved good results during the first period ( ), the mandatory savings requirement for energy suppliers was doubled, to a total of 130 TWh cumac. An Energy Savings Certificates scheme has also been tested in Italy since These schemes (also implemented in Denmark and in the Flemish region of Belgium) have been recognized to be effective at the European level, as directive UE on energy efficiency, adopted in late 2012, requires Member States to enact similar schemes by Many countries have expressed an interest in this type of mechanism and are studying its application. NB: CERTAIN ACTIONS ARE NOT ELIGIBLE! Generally speaking, ESCs are allocated for hard investments in energy-efficient equipment or materials. The scheme does not reward actions related to individual behaviour, even though this is a source of considerable energy savings. In addition, certain types of investments are excluded under the scheme: energy savings achieved in an installation subject to the European CO 2 Quotas Directive (major industrial sites and large boiler plants); actions that are required by regulations: ESCs are allocated only for measures that achieve higher performance than the level required by regulatory norms; simple substitution between final energy resources: a change in type of energy (electricity, gas, heating, oil, automotive fuel) does not generate ESCs. Energy Savings Certificates / 11

12 2 PART 2 ESCs in support of energy management projects A FINANCIAL TOOL ExAmples The ESC scheme is intended to trigger new investment in energy management. ESCs should be considered as an additional financial tool to leverage funding for energy savings projects, in the same way as subsidies or fiscal advantages (tax credits, e.g.). For a project owner ESCs should be considered in the overall framework of an energy management project. In the absence of guarantees concerning the final monetization of ESCs it may be risky to invest in a project with the sole aim of realizing the financial value of these certificates. Projects should aim first and foremost to reduce energy consumption and the associated costs. For eligible actions energy savings are the prime benefit that justifies the investment, and ESCs are a factor that facilitates this investment. As a reminder, the average monthly unit price for kwh cumac trades on the Emmy register can be found on the website, under the market price heading. 1 An industrial company installs a compressed air system equipped with integrated variable speed control (200 kwh electrical for an output of 2,000 Nm 3 /hour) The total investment, including labour, amounts to 60,000. The choice of variable speed control generates annual savings of 200 MWh of electricity compared to a system without these controls. Over the entire life of the operation this action is worth 1.6 GWh cumac, with a monetary value between 0 and 32,400, depending on the value of the kwh cumac, between 0 and A company in the tertiary sector has to refurbish the terrace roof of its office, to repair leakage problems. Taking advantage of this occasion, the company decides to reinforce the thermal insulation of the terrace (600 m²). The work costs 70,000 for simple insulation, and 74,000 for reinforced insulation that qualifies for ESCs (90 mm polyurethane insulation). The reinforced insulation generates annual savings of 30 MWh of natural gas, worth approximately 1,200 on the annual gas bill. The operation qualifies for 1.08 GWh cumac in ESCs, worth 10,800 if the certificates are valorized at In this case realizing the ESCs covers the cost premium tied to the choice of best performance in terms of roof insulation. PART 2

13 PART 2 A PRELIMINARY STUDY IS NECESSARY In order to be effective an energy management project must be based on a preliminary phase to identify and assess potential energy savings. The available energy savings and the most appropriate solutions for achieving them can be detected via an energy audit of the existing installation. investment improvements energy this study will determine whether and how the esc mechanism can be used, in several stages: First, among the measures being considered, those that are eligible for ESC allowances are listed. The volume of kwh cumac that they represent is calculated. The eventual financial realization of the certificates is included in the determination of cost-effectiveness (payback time, internal rate of return). Energy Savings Certificates / 13

14 ESCs in support of energy management projects DECISION-MAKING AIDS ADEME offers a number of services to companies for carrying out technical and economic studies that will help them make the right choices in terms of energy-saving measures. These services range from methodological assistance and financial support to dedicated technical publications and specification documents (available at Different types of services can be obtained (see the table). To qualify for financial aid the project owner must contract with an engineering firm whose activity is not related to supply of energy, services or equipment, and submit the request for funding to ADEME before starting up the preliminary study. You can obtain information on these procedures and the necessary data from your regional ADEME office. AND INVESTMENT SUBSIDIES FROM ADEME? The basic principle is that ESCs cannot be combined with investment subsidies from ADEME. Project owners must choose either to obtain an investment subsidy from ADEME or realize the monetary value of the operation via certificates. efficiency energy savings PART 2

15 PART 2 SERVICES THAT QUALIFY FOR FINANCIAL AID FROM ADEME TYPE OF SERVICE TASK LEVEL OF SUBSIDY Preliminary assessment Simplified technical assessment (2 to 3 days). Clear understanding of the existing situation. Identification of areas calling for improvement and ranking possible solutions. Maximum rate: 70 %* Maximum assessment base: 5,000 Audit In-depth analysis of the situation. Critical and comparative study of various possible technical and/or organizational solutions. Global or specialized, often equipped with instruments to take measurements in situ. Supporting action for implementation of suggested measures is possible. Maximum rate: 70 %* Maximum assessment base: 50,000 Feasibility study In-depth technical and economic analysis to elaborate the selected technical solution prior to investment. Precise definition and sizing of the operation, including elements needed for consulting suppliers and contractors. Maximum rate: 70 %* Maximum assessment base: 100,000 * These are maximum subsidy rates, that may vary with the type of audit and the beneficiary. We advise you to obtain detailed information from your regional ADEME office. Energy Savings Certificates / 15

16 ESCs in support of energy management projects HOW CAN ESCs BE CONVERTED? The question of realizing the monetary value of ESCs should be addressed in the financial planning phase of the energy management project. Companies, that are no longer eligible in the second period, cannot realize ESC operations in their own name, and must establish partnerships with obligated parties to receive ESCs. These upstream partnerships guarantee the financial value by contract with the obligated party. Finding an upstream investment partner A company can negotiate a partnership with one or more obligated parties before carrying out its project. In this case it is the obligated party who files for the ESC allowances. As the project initiator is not eligible, the entity is not listed in the ESC registry. Instead, the company obtains financial compensation and/or technical support from the obligated party in return for the authorization that it has granted allowing the obligated party to obtain ESCs for the project. Stage 1: The company carries out the preliminary assessment (audit), estimates the potential volume of kwh cumac and decides which actions it wants to implement. Stage 2: The company contacts obligated parties, to discuss and negotiate a partnership with one or more of them. An agreement is signed between the parties, specifying the financial compensation and/or technical assistance granted by the obligated party. Stage 3: The company carries out the operation. Stage 4: The company transfers supporting documentation on the operation to the obligated party or parties (invoices, record of investment decisions, etc.). Stage 5: The obligated party or parties fill out the claim for ESC allowances, including the memorandum of agreement with the project initiator. The obligated party files the claim and the ESCs for the project are recorded in that party s account with the registry. When looking for partners it is advisable to consult with several obligated parties in order to conclude the most advantageous contract. PART 2

17 PART 2 FOR FURTHER INFORMATION DGEC website (official site of the scheme): ADEME website: KBaseShow?sort=-1&cid=96&m=3&catid=15024 ATEE website: Ademe Contact information for regional offices available at Guidelines and specifications (energy audits etc.) are available at GLOSSARY: Pole National CEE (PNCEE): National ESC Pole, an entity with country-wide competence, under the Directorate General for Energy and Climate (DGEC). DREAL: regional directorates (of central government) for the environment, infrastructure and housing. Eligible parties: local authorities, the national housing rehabilitation agency (Agence nationale de l habitat, ANAH) and social housing authorities who can undertake in their own name energy savings operations that qualify for ESCs. ESC marketplace: the ESCs obtained by obligated and eligible parties are recorded in a registry. They can be bought and sold, and therefore constitute a market. Obligated party: an energy supplier required by law to achieve quantitative objectives in terms of energy savings. kwh cumac: accounting unit of the ESC scheme The abbreviation cumac indicates that the energy savings recorded are both cumulative and discounted. Standard operation: a measure that qualifies for a predetermined ESC allowance in kwh cumac, established by administrative order. Non-standard or special operation: a measure that qualifies for ESC allowances determined on a case-by-case basis. Energy Savings Certificates / 17

18 FILING A CLAIM FOR ESCs SUBMISSION AND DEADLINES To obtain certification for energy savings actions, a claim is filed with the National ESC Pole that appraises and validates the claims. Prior to the creation of the National ESC Pole on 1 October 2011, the ESC claims were appraised by the regional DREAL offices. Claims are reviewed within 1 month for an approved action plan (approval delivered by the National ESC Pole for no more than 3 years for a set of coordinated operations), within 3 months for standard operations that are not part of an approved action plan, and within 6 months for special or non-standard operations. OPERATIONS AT SITES SUBJECT TO CO 2 QUOTAS Energy savings operations carried out at installations that are subject to regulations on greenhouse gas emissions (European Emissions Trading Scheme) are not eligible for ESCs, by principle. These installations include all equipment and processes that industrial facilities are required to monitor under administrative orders of 25 February and 28 July However industrial companies can obtain ESCs for operations pertaining to equipment or site facilities that are not included in the regulatory monitoring plan (office buildings, workshops, warehouses for instance). CONTENTS OF THE CLAIM As companies are no longer eligible in the second period, the only way they can obtain ESCs is to establish a partnership with an obligated party, that files an ESC claim under its own account. The claim must include a description of the operation and supporting documentation that attests to its completion (invoices, terms of completion). The claim is therefore filed once the investment is completed. In the second period the claim must also include an attestation of exclusivity signed by the main works contractor and the beneficiary, as well as documentation proving the active and leading role of the claimant prior to start-up of the operation. The items to be included in the claim are published by administrative order and the list is available on the DGEC website: (administrative order of 29 December 2010 for operations engaged after 1 January 2011, order of 19 June 2006 for operations engaged before 1 January 2011, and order of 29 June 2011). The National ESC Pole can advise claimants on how to draw up their claim. There is a fundamental requirement for the second period: each (eligible party) claimant must prove an active and leading role in inciting the beneficiary to carry out the action. This contribution (project-specific advice, supporting measures, financial aid etc.) must take place before the operation is carried out. PRACTICAL POINTERS

19 registration deadline claim PRACTICAL POINTERS THE 20 GWh CUMAC THRESHOLD AND GROUP OPTION Claims for ESC allowances must attain a minimum volume of 20 GWh cumac to qualify, with an exception for one claim of lesser volume per year. The scheme allows participants with operations totalling under 20 GWh cumac to group together and pool their claims to reach the qualifying threshold. In this case the members of the group delegate an authorized representative, who may be one of the members of the group or an outside entity (engineering firm, management company, federation or union, technical centre, consular body, etc.). Eligibility is appraised for each operation individually. LISTING IN THE REGISTRY Once a claim is accepted the value of the certificates awarded for an operation is recorded in the national online registry. Overall, registration costs are low: the fee for opening an account is set at 106 (until end 2012, subject to revision in 2013) registration fees for ESCs are proportional to the number of certificates in the account: 11 per GWh cumac (until end 2012, subject to revision in 2013). FOR FURTHER INFORMATION All regulations pertaining to the scheme and information sheets for standard operations are available on the DGEC website: See in particular the pages on filling out a claim for certificates: Consult the online ESC registry: Energy Savings Certificates / 19

20 About ADEME The French Environment and Energy Management Agency (ADEME) is active in the implementation of public policy in the areas of the environment, energy and sustainable development. The Agency provides expertise and advisory services to businesses, local authorities and communities, government bodies and the public at large, to enable them to establish and consolidate their environmental action. As part of this work ADEME helps finance projects, from research to implementation, in the areas of waste management, soil conservation, energy efficiency and renewable energy, air quality and noise abatement. ADEME is a public agency under the joint authority of the Ministry for Ecology, Sustainable Development and Energy, and the Ministry for Higher Education and Research. 345 TWhcumac renovation energy efficiency savings The Energy Savings Certificates (ESC) scheme is a regulatory mechanism that requires energy suppliers to achieve energy savings by undertaking various actions aimed at consumers. For companies this mechanism is an additional financial leverage tool that can be used to support their energy management projects. Under this scheme energy suppliers can provide financial support to project owners. This guidance is intended to present the main principles of the scheme, and to give companies the practical information they need to integrate ESCs into their energy management projects. TWh90 cumac TWh255 cumac 7734 March 2013 French Environment and Energy Management Agency ADEME 20, avenue du Grésillé BP l Angers Cedex 01