European Commission Urged to Implement Clean Hydrogen Mandates and Streamline Funding for Sustainable Projects
Key Ideas
- Top hydrogen trade bodies are advocating for binding targets on the use of clean hydrogen to drive the scale-up of sustainable products like green steel and green ammonia.
- They emphasize the need for streamlined funding mechanisms to speed up the deployment of hydrogen projects in Europe, suggesting consolidation of funding programs and clear auction timelines.
- The groups call for the stacking of EU and national incentives to bridge the cost gap and make sustainable products competitive, highlighting the importance of the European Hydrogen Bank in complementing Innovation Fund revenues.
- Concerns are raised about the risk of market distortions if funds are excessively stacked, but the trade bodies argue that reforms are necessary to prevent Europe from falling behind in global competitiveness and meeting climate targets.
In an open letter addressed to the European Commission, leading hydrogen trade bodies including the Hydrogen Council, Hydrogen Europe, the Renewable Hydrogen Coalition, and the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) are urging for the implementation of clean hydrogen mandates and the streamlining of funding for sustainable projects. The letter emphasizes the crucial role of market activation measures in setting binding targets for the use of sustainable products like green steel and green ammonia in state-funded projects to drive the scale-up of clean hydrogen.
The trade bodies are advocating for the stacking of EU and national incentives to bridge the cost gap and make sustainable products more cost-competitive with polluting alternatives. They suggest that funding mechanisms need to be simplified for efficiency and speed, with a focus on launching mature projects quickly. The letter also calls for the European Hydrogen Bank (EHB) to be a central funding platform complementing Innovation Fund revenues and allowing for the stacking of funds with national grants.
While there are concerns about the risks of over-subsidisation and market distortions with excessive stacking of funds, the trade bodies argue that reforms are necessary to accelerate hydrogen deployment in Europe. They propose consolidating existing funding schemes, setting clear auction timelines, centralizing funding platforms, and de-risking investments with loan guarantees.
Failure to implement these improvements, as highlighted in the letter, could hinder the modernization of key industries like steel, fertilizers, chemicals, aviation, and shipping, impacting Europe's global competitiveness and ability to meet climate targets. The trade bodies stress the importance of preventing Europe from falling behind in the global race towards clean technology and sustainable industries to combat climate change.
Topics
Fuel Cells
Clean Energy
Green Technology
Sustainable Development
EU Regulations
European Commission
Policy Recommendations
Funding Mechanisms
Market Activation
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