Grandfathering clause to allow energy from RED II compliant fuels

21 July 2025 Renewable Energy Directive

On 23 May 2025, the European Commission sent a formal Note for the attention of the voluntary schemes to explain how the new Renewable Energy Directive (RED III) applies after the 21 May 2025 transposition deadline and whether there is a possibility of a transition period for RED II compliant economic operators to transition to RED III after 21 May 2025.

How RED III applies after 21 May: the grandfathering clause in the context of forest biomass

RED III introduces 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. 

At the same time, RED III also includes Article 29(15), which introduces a grandfathering clause to allow Member States to accept energy produced from RED II compliant biomass fuels from installations (energy production facilities) that satisfy the two following conditions:

• Support was granted before 20 November 2023, in accordance with RED II criteria, and
• 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. 

If both conditions are met, those biomass fuels can be reported under the RED II criteria until 31 December 2030 

This grandfathering clause will also apply to all suppliers of installations that satisfy the above conditions in the wood-energy sector that deliver forest biomass; wood waste and residues are not accepted. The grandfathering clause applies to both locally produced and imported forest biomass, as long as the above conditions are met for installations. 

There is no automatic right to the grandfathering clause; the Member State decides whether or not to invoke the clause. To do so, the Member State must notify the European Commission, the affected installations, and the relevant voluntary schemes, explaining how the two conditions are fulfilled. Only after this notification can voluntary schemes continue issuing RED II certificates for the relevant installations. 

France invokes the grandfathering clause: PEFC’s approach

The competent authority in France has decided to invoke the grandfathering clause. As a result, PEFC will implement the following approach:

• PEFC RED notified certification bodies will be able to audit against PEFC RED II standards and issue PEFC RED II certificates under the grandfather clause in France.
• Economic operators based in neighbouring countries to France will also be eligible to hold a PEFC RED II certificate, whenever the company can demonstrate that they are selling only to France. 
• French-based companies holding a PEFC RED II certificate and sourcing from forests outside France will need to follow all the sourcing requirements under the PEFC RED II standards.
• If a company operating in France is selling biomass to a country that has not invoked the grandfathering clause, PEFC will only authorise RED III aligned certification and declarations.
• If a French-based company is selling biomass both in France and to another country/countries that have not invoked the grandfathering clause, PEFC will allow the organisation to obtain both PEFC RED II and PEFC RED III certificates, and make RED II and RED III declarations, accordingly.  
• PEFC will allow economic operators to recognise RED III certified biomass as RED II compliant by RED II certified companies. However, we will not allow RED II biomass to be considered compliant by a RED III certified organisation under any circumstances.

Important note: Within the European Economic Area (EEA), the grandfathering clause has been invoked solely by France; consequently, the exception applies only in France.

What happens with RED II compliant forest biomass outside of France?

The grandfathering provisions apply exclusively in France and are applicable only to companies based in France. Economic operators elsewhere in the EEA area who were certified against the PEFC RED II standards and not supplying to the grandfathering clause satisfied installations in France before 21 May must start to comply with the PEFC RED III standards and they have until their next surveillance or recertification audit to be audited against the PEFC RED III standards and achieve RED III compliance

RED II compliant biomass fuel produced before 21 May

• RED II compliant biomass fuel produced and stored before 21 May remains valid and can still be sold after 21 May
• Stored biomass fuel bought as RED II compliant before 21 May but transformed after 21 May needs to be RED III compliant. 

RED II compliant biomass fuel produced after 21 May

• RED II compliant biomass fuel and any biomass fuel produced after 21 May must meet RED III criteria. 

 For further support, contact us: red@pefc.org