Information on the Law of 16 August 2022 on purchasing power

Laws and Policies

CCLW

CCLW national policies

Law of 16 August 2022 on purchasing power

Promulgated

This law aims at enhancing the protection of household living standards, consumer protection and energy sovereignty.&nbsp;<br><br>Climate-related norms in the law include:&nbsp;</div><ul><li>On biogas. A national biogas portal is instituted. In the Energy Code, is inserted a sentence worded as follows: "In order to strengthen this security of supply of natural gas, it identifies the support measures necessary to accelerate and develop projects for the production of biogas and any other form of gas renewable sources, in particular those from agricultural methanisation, ensuring that there is no conflict of use with land and agricultural prices."</li><li>On luminous advertising. In the event of a threat to the security of electricity supply, without compromising the objectives of public security and national defense as well as the safety of sensitive installations and works, the Minister responsible for energy may prohibit any illuminated advertising, any advertising supporting posters illuminated by projection or transparency or any digital advertising in built-up areas and outside built-up areas, on roads open to public traffic as well as in airports, train and bus stations and public transport stations and stops. This article also applies to advertisements located inside premises when their location makes them visible from the public thoroughfare.</li><li>The Constitutional Council has challenged an article which aimed to legalise the use of used cooking oil as fuel for private cars.</li></ul><div><br></div><div>The law was validated by the Constitutionnal Council on August 12, 2022. In its decision the Council ruled that the installation of a floating LNG carrier is likely to harm the environment and that it contravenes the Environmental Charter. The Council however validates this installation in a context of difficult gas supply threatening the independence of the nation. It is in this context that the Constitutional Council matches its decision with a reservation of interpretation. According to this reservation, the preservation of the environment must be sought in the same way as the other fundamental interests of the nation. Choices that contravene Article 1 of the Environmental Charter can only be applied in the event of a serious threat to the gas supply. The same reservation applies to Article 36 of the text voted by Parliament, which authorizes raising the ceiling for greenhouse gas emissions from certain thermal power stations operating with fossil fuels.

Law on purchasing power

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

Energy derived from biological compounds that are renewable due to their short life cycle within the carbon dioxide cycle.

Compulsory, required payments to the government that are levied more-or-less in proportion to the services provided. Fees and charges range from entrance fees to national parks, charges on land-based sewage discharge.

A tax advantage is an economic benefit applied to certain accounts or investments that are, by law, tax-reduced, tax-deferred, or tax-free. This can apply to investments in areas such as green energy projects or the agricultural sector, where tax advantages can help manage financial risks.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

People whose health, both mental and physical, makes them more vulnerable to the effects of climate change

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Information on the Law of 16 August 2022 on purchasing power

Policy instrument

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Finance