Germany's Political Parties in Favor of Green Gas Quota to Boost Hydrogen Production
Key Ideas
- Germany's main political parties are considering a green gas quota to accelerate hydrogen production post-2025.
- The proposed policy mandates suppliers to incorporate carbon-free or low-carbon gas gradually, promoting hydrogen economy growth.
- The green gas quota aims to align with climate targets, ensure energy security, and foster competition between hydrogen and biogas.
- Industry players support the quota for its long-term planning security and potential to drive market ramp-up for new gases.
Germany's political landscape is leaning towards supporting a national green gas sales quota to boost hydrogen production following the 2025 general election. While the German government has yet to propose a green gas quota, several European neighbors have already taken steps in that direction. The BMWK ministry, led by the Greens, is advocating for a more active industrial policy to facilitate hydrogen production rather than a broader green gas policy driven by market forces. However, both the SPD and CDU are increasingly considering a green gas quota as a viable option for the future energy transition.
The proposed policy would require gas suppliers to demonstrate a certain percentage of carbon-free or low-carbon gas in their portfolios. This approach differentiates itself from the green gas blending models adopted in other countries and is designed to support the gradual scaling up of the hydrogen economy. The ultimate goal is for only renewable gases to be used in German gas grids by 2045, with penalties enforced for non-compliance.
Industry stakeholders have largely welcomed the proposal, citing its potential to provide planning security and meet the demands of the hydrogen industry. The policy is seen as a way to balance the competition between hydrogen and biogas, ensuring the most cost-effective decarbonization pathway. While some concerns have been raised about the complexity of the policy, many view the green gas quota as a valuable instrument for advancing the market uptake of new gases.
Overall, the green gas quota proposal in Germany has garnered support for its alignment with climate goals, promotion of renewable energy sources, and potential to drive innovation and competition in the gas industry.