The European Union's adoption of Directive (EU) 2023/2413 (RED III) signifies a commitment to reducing dependence on fossil fuels and advancing towards renewable energy sources. The directive mandates ambitious targets for Renewable Fuels of Non-Biological Origin (RFNBO) across industries, with Member States required to transpose it into national law by May 21, 2025. To assist in meeting these targets, the European Commission released a communication providing guidance on achieving RFNBO goals in industry and transport sectors. Key elements covered in the guidance include clarifications on the scope of application of RFNBO targets, the relationship between these targets and broader EU renewable energy goals, conditions for reducing the RFNBO target, and the binding sub-target for RFNBOs in the transport sector. The guidance emphasizes the role of hydrogen in refineries and transport, offering valuable insights for achieving the EU's clean energy transition objectives. While the guidance is generally well-received for providing much-needed clarity, there are concerns about unresolved issues like carbon leakage risks and uncertainty surrounding the exclusion of integrated ammonia plants. Despite these challenges, industry stakeholders view the guidance as a crucial step towards ensuring a predictable regulatory framework for attaining RED III's ambitious goals. The article also highlights the European Commission's guidance on additional aspects of the Renewable Energy Directive, including heating, cooling, and energy system integration. While welcoming this guidance, there is a call for more focus on hydrogen's role in energy storage and system integration to further strengthen the sector's involvement. Overall, the industry acknowledges the significance of these steps in advancing towards cleaner energy solutions and recognizes the essential role that hydrogen will play in achieving the EU's renewable energy targets. However, there is a collective desire for more comprehensive guidance and support to fully leverage hydrogen's potential in the energy transition.