judgment

IPC Petroleum France SA v. France - judgment

Filing Year For Action

On December 18, 2019, the French Administrative Supreme Court upheld a decision to include an expiration date in a fossil fuel mining permit.

In early 2018, IPC Petroleum France SA applied for an extension of its existing fossil fuel extraction permit. The extension was granted, but only until January 1, 2040. Under law n° 2017-1839 of December 30, 2017, new research and exploitation of fossil fuels is not allowed in France in light of its Paris Agreement commitments, and existing hydrocarbon mining permits cannot be extended beyond January 1, 2040.

The Company brought this action against the government, alleging that placing an expiration date on its mining permit interfered with the company’s right to the peaceful enjoyment of property implied by article 1 of the Charter of Fundamental Rights of the European Union, and that the French Mining Code allows a permit to be renewed beyond 2040 for economic reasons.  

The Court dismissed IPC Petroleum France's request, concluding that although the Mining Code does permit a further extension, it provides a precise definition of the appropriate circumstances in which to do so and requires balancing the extension against general public interest. The Court ruled that the January 1, 2040, deadline, more than 20 years after the adoption of the December 30, 2017 law, appropriately balanced the Company’s right to enjoy its property against France's commitment to limit climate change.


IPC Petroleum France SA v. France

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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

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

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

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

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.

IPC Petroleum France SA v. France - judgment

Policy instrument

Risk

Just transition

Fossil fuel

Economic sector

Finance