EU stays tough on biomethane as France targeted after Ireland ruling

The European Commission has launched legal action against France over a biomethane support scheme that favours domestic production, in a move that signals a widening crackdown on national measures that restrict cross-border trade.

The decision marks a further escalation in enforcement of EU internal market rules, following a similar ruling against Ireland .

According to the Commission, France’s certificate system – which requires suppliers to source biomethane or credits from domestic producers – restricts imports from other EU member states and breaches free movement of goods provisions under a central EU treaty.

The move follows a recent intervention in Ireland’s Renewable Heat Obligation, where a proposed domestic biomethane multiplier was blocked on similar grounds. In that case, the Commission found the measure discriminated against imports and failed to demonstrate necessity or proportionality.

Together, the cases point to a more assertive stance from Brussels against national support mechanisms that prioritise domestic renewable gas production.

During a gasworld webinar last week, CEO/Director of DAH Renewable Consultancy David Hurren said the Ireland decision reflected broader constraints around national interventions.

“Basically it’s all to do with state aid and this is ultimately how [it] is used,” he said. “It’s passing a state aid test and trying to prioritise local biomethane over biomethane being shipped into the country and that’s just the challenge of navigating European politics.”

Commenting on the Ireland ruling, founder and CEO of Future Biogas Philipp Lukas said the decision was inevitable.

“The EU is all about trying to create a level playing field for participants in Europe, whether that’s in government tenders or in any other markets,” he said.

The Commission is promoting the integration of biomethane across the EU gas market through cooperation between member states, as outlined in the REPowerEU Action Plan.

It also said France breached the Single Market Transparency Directive by failing to notify the scheme at draft stage prior to its adoption.

France now has two months to respond. In the absence of a satisfactory reply, the Commission may escalate the case by issuing a reasoned opinion – a formal legal warning given before referral to the European Court of Justice.

The intervention comes as the EU targets 35 billion cubic metres (bcm) of biomethane production by 2030 under its REPowerEU plan, up from around 3 to 4 bcm today,