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Financial guarantees

The legislation on classified installations stipulates, for certain categories of installations, that the operation be subject to the implementation of financial guarantees. This is a written commitment from a credit institution or insurance company capable of mobilising, if necessary, the funds required to make up for the operator’s failure in certain complex cases, in order to prevent large-scale works from becoming the responsibility of the local community.

The installations concerned are :

  • waste storage facilities,
  • quarries,
  • permit holding installations with public easement (sites with significant risks, known as AS).

3Financial guarantees relate to :3

  • for waste storage facilities : site monitoring, interventions in case of accident or pollution, site rehabilitation after operation,
  • for quarries : site rehabilitation after operation,
  • for permit holding installations with public easement : installation monitoring and safety maintenance in case of exceptional event, site rehabilitation after operation.
    The amount of these guarantees is set based on the operator’s indications, with provision and calculation methods to be presented in the permit application. They are set out in the prefectural permit order, following analysis by the Inspectorate of classified installations. Their amount is reviewed periodically.
    In addition, operators must provide a guarantee renewal certificate at least three months before expiry of this guarantee.

3Calculation method3

Orders and Circulars from the Ministry in charge of the environment provide guarantee calculation methods and examples for different installation categories.

3Legal references3

Environmental code, article L 516-1
R516-1 article and subsequent of the environmental code
Amended order of 1st February 1996 establishing a model for financial guarantee certificates
Waste storage centres : Circulars of 28 May 1996, 23 April 1999, 14 February 2002,
Quarries : Order of 10 February 1998, Circular of 16 March 1998, Order of 9 February 2004,
Installations subject to public easement : Circular of 18 July 1997.