The European Commission has reaffirmed its commitment to developing the hydrogen market by introducing a comprehensive methodology for assessing greenhouse gas emissions from low-carbon hydrogen and fuels. This framework, set out in the Hydrogen and Gas Market Directive, complements existing methodologies for renewable hydrogen and renewable fuels of non-biological origin (RFNBOs), thereby completing the EU’s hydrogen regulatory framework.<\/p>\n\n\n\n
This is a pivotal step that provides clear regulatory certainty, unlocking investment and accelerating the scale-up of clean hydrogen production across Europe. As highlighted in the Clean Industrial Deal, legal certainty and coherence are crucial for fostering investment and enabling producers to scale up, ultimately accelerating the sector’s growth. Low-carbon hydrogen will support decarbonization efforts in sectors where electrification is not yet viable, such as aviation, shipping, and certain industrial processes. This initiative contributes to the EU’s climate neutrality goal for 2050 while ensuring the leadership and competitiveness of Europe’s hydrogen sector.<\/p>\n\n\n\n
To be considered low-carbon, hydrogen and related fuels must achieve a threshold of 70% greenhouse gas emission savings compared to unabated fossil fuels. This means that low-carbon hydrogen can be produced in various ways, for example, using natural gas with carbon capture, utilization, and storage (CCUS), or from low-carbon electricity sources. The methodology recognizes the diversity of energy mixes across Member States, offering a flexible and pragmatic framework.<\/p>\n\n\n\n
Following its adoption, the Act will now be transmitted to the European Parliament and the Council, which have 2 months (extendable to 4) to scrutinize it.<\/p>\n\n\n\n
In 2026, the Commission will launch a public consultation on a methodology for using Power Purchase Agreements (PPAs) for nuclear energy, aiming to provide clarity for the production of low-carbon hydrogen from direct nuclear sources.<\/p>\n\n\n\n