Hydrogen: European Council calls for implementation of regulatory framework

November 6, 2024, by Aida Čučuk

European Council has adopted conclusions on the special report of the Court of Auditors on the European Union’s (EU) industrial policy on renewable hydrogen. The report has been welcomed, with the Council calling for “swift” implementation of the EU’s regulatory framework, encouraging the development of an interconnected transportation network and calling on the European Commission to take measures that support both the competitiveness of EU industry and the security of investment.

Courtesy of the European Commission; Photo by Mauro Bottaro

As disclosed, the report evaluated the Commission’s effectiveness in creating the “right” conditions for the emerging renewable and low-carbon hydrogen markets. It assessed the EU’s policy communications and legislative proposals (i.e. the REPowerEU Plan, the FuelEU Maritime Regulation, the Net-Zero Industry Act and the Gas Package), as well as funding programs aimed at developing the hydrogen value chain.

The Council and the Parliament already adopted legislative proposals such as the Gas and Hydrogen Package and the Net-Zero Industry Act, which are expected to help the EU reach its energy and climate objectives and strengthen the competitiveness of the EU’s strategic net-zero industry. However, for these legislative acts to contribute to the emergence of the European hydrogen ecosystem, “it is important that the existing legal framework is implemented swiftly,” the Council said.

The conclusions attach particular importance to Member States’ national energy and climate plans when considering EU-level targets for the production and import of hydrogen, the Council added, also emphasizing the significance of the interconnection of European networks in regard to facilitating cross-border hydrogen transportation and storage, and for linking producers and buyers.

To note, the Commission was also urged to consider the recommendations of the European Court of Auditors’ report and “to follow up with coherent actions, while striking the right balance between ensuring a competitive edge for European industry on the one hand and investor security on the other.”

In other news, European Community Shipowners’ Associations (ECSA) and European green transport group Transport & Environment (T&E) have called upon EU leaders to prioritize clean fuel production as part of the upcoming Clean Industrial Deal, which is said to be “a great opportunity” to support the energy transition of shipping, while increasing industrial capacity in Europe.

Furthermore, industry associations, including Methanol Institute, Europex and Hydrogen Europe, have called on the EU to refine the Low-Carbon Fuels Delegated Act to make it “effective, inclusive and fully aligned” with Europe’s energy and climate goals. In a joint statement, the associations called for “greater transparency, fair market practices and strong traceability systems to support renewable energy growth without creating unnecessary burdens for economic operators.”

It is also worth mentioning that in October 2024, the European Commission selected 85 net-zero projects, including those involving hydrogen and maritime, to receive €4.8 billion in grants from the Innovation Fund. Among the winners are projects of different scales, covering a wide range of sectors from the following categories: energy-intensive industries, renewable energy, energy storage, industrial carbon management, net-zero mobility (including maritime and aviation) and buildings.

The selected projects are set to enter into operation before 2030 and over their first ten years of operation are expected to reduce emissions by about 476 million tonnes of CO2 equivalent. According to the Commission, this will strengthen European industrial manufacturing capacity, reinforce Europe’s technology leadership and supply chain resilience and contribute to European decarbonization objectives, reducing emissions from the sectors that are particularly difficult to decarbonize.