European Associations Call for Overhaul of Hydrogen Policy
Key Ideas
- European associations urge European Commission to reevaluate hydrogen policy for cost-competitive production.
- Recommendations include assessing impact of renewable fuel criteria on production costs and GHG emissions.
- Calls for technology-neutral regulations, financial incentives, and EU-level action plan for hydrogen grids.
- Commission urged to develop global hydrogen market, act on recommendations through upcoming Clean Industrial Deal and other initiatives.
Hydrogen Europe and 16 other European associations have jointly urged the European Commission to review and make significant changes to the EU's hydrogen policy. The group emphasized the need for a more pragmatic approach to enable cost-competitive hydrogen production and called for a reality check on the current renewable fuel criteria's impact on production costs and greenhouse gas emissions.
The recommendations also highlighted the importance of technology-neutral regulations, continued financial incentives, and the development of an EU-level action plan for hydrogen grids. Additionally, they called for support in creating markets for products made with low-carbon fuels and enhancing European incentives on the demand side.
The associations stressed the importance of long-term planning security by revising the European Hydrogen Strategy and accelerating infrastructure development to de-risk and smarten the process. Moreover, they emphasized the need for the EU to strengthen its role in creating a global hydrogen market by collaborating internationally.
The European Commission has been asked to act on these recommendations through various upcoming initiatives, including the Clean Industrial Deal and the Action Plan for Affordable Energy. The push for policy changes comes following the European Council's support for the swift implementation of the EU's regulatory framework and the encouragement to boost the competitiveness of EU industries.
In related developments, the European Hydrogen Bank's second auction has been launched, allocating €1.2 billion to support hydrogen producers in the EEA. Furthermore, over €250 million in grants will be provided for 21 hydrogen infrastructure development studies to mitigate investment risks and enhance the evolving hydrogen market.
Topics
Production
Grid Infrastructure
International Cooperation
Financial Incentives
Market Development
Advocacy
Policy Change
Funding Allocations
Revisions
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