Efforts to exclude biomethane support from government expenditure should not lead to suboptimal changes to the design of support.
After a number of changes have recently been made to feed-in-tariffs available to biomethane production in France, thoughts are now turning to more structural reforms of the support available to the sector.
In particular, discussions over the course of the last few months have shown that the Executive is looking to reduce (possibly down to zero) the toll placed by biomethane support on the state budget.
We find that this quest for a mechanism that does not form part of government expenditure has led to risky options being considered – namely supplier obligations.
We believe that it possible to reconcile the budget issue with a design that maximises the key objectives of supporting roll-out and reducing costs.
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