EU Adopts Groundbreaking Hydrogen and Decarbonized Gas Market Package
Key Ideas
  • The EU Council adopted the Hydrogen and Decarbonized Gas Market Package aimed at shifting the gas system to low-carbon and renewable gases.
  • The Package focuses on decarbonizing the gas market, promoting the use of renewable and low-carbon gas like hydrogen, and regulating hydrogen networks.
  • It includes rules to privilege renewable and low-carbon gases, facilitate network access, and establish guidelines for the production and use of low-carbon hydrogen.
On 21 May 2024, the Council of the EU officially adopted the Hydrogen and Decarbonized Gas Market Package, a significant step towards transitioning the gas market to more sustainable alternatives. The Package, which includes the 'H2 Directive' and the 'H2 Regulation', aims to decarbonize the gas market by promoting renewable and low-carbon gases, with a specific emphasis on hydrogen. These gases are set to replace traditional fossil-based natural gas in the gas system, with provisions for privileged treatment under the regulations. The Package also outlines a gradual phase-out of unabated natural gas, introducing rules that limit the use of existing natural gas infrastructure for non-renewable purposes. Additionally, the Package harmonizes gas quality standards with existing Renewable Energy Directive II/III-legislation, providing a clear definition of low-carbon hydrogen. The regulations address network access and connection, ensuring non-discriminatory practices and setting guidelines for hydrogen network operations. Overall, the EU's adoption of this Package marks a positive step towards a more sustainable and hydrogen-inclusive energy future.
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