Hydrogen is gaining prominence in the European Union's strategy for achieving climate neutrality. While most hydrogen in the EU is currently produced from natural gas, the focus is shifting towards cleaner alternatives like renewable and low-carbon hydrogen. The EU aims for renewable hydrogen to constitute 10% of its energy needs by 2050, necessitating a reduction in production costs and the establishment of a robust hydrogen infrastructure. The production methods for hydrogen include steam methane reforming, electrolysis, and biological processes, with the majority of EU hydrogen still fossil-based. To incentivize the shift to low-carbon hydrogen, the EU has set emissions reduction thresholds and is working towards cost competitiveness with fossil-based hydrogen. Despite the higher cost, green hydrogen produced through electrolysis is seen as a key player in decarbonizing various industries and sectors like steel, chemicals, and transportation. The EU is also focusing on expanding hydrogen infrastructure, with plans to repurpose existing natural gas pipelines and build a extensive hydrogen pipeline network by 2040. The EU is actively supporting hydrogen initiatives through funding programs like the European Hydrogen Bank and introducing policies to increase the share of renewable sources in hydrogen production. The long-term goals include producing and importing significant amounts of renewable hydrogen by 2030, though challenges like uncertain demand and supply remain. With the right investments, infrastructure development, and regulatory frameworks, hydrogen is poised to become a critical component of the EU's energy landscape, aiding in emission reduction, energy security, and industrial innovation.