European Council Adopts Groundbreaking Hydrogen and Decarbonised Gas Market Package
Key Ideas
  • The European Council adopted the 'Hydrogen and decarbonised gas market package' aimed at reforming the EU regulatory framework to support renewable and low-carbon gases, particularly hydrogen.
  • The Gas Package includes regulations for the integration of renewable and low-carbon gases into the gas network, establishment of cross-border hydrogen infrastructure, and rules for the natural gas and hydrogen market organization.
  • Key components of the package involve unbundling and third-party access rules to ensure a competitive and open hydrogen market, with provisions for network development plans and infrastructure enhancement.
  • The Gas Regulation within the package contains measures to support the uptake of renewable and low-carbon gases, including obligations on member states, system operators, and network tariff discounts for renewable and low-carbon gas users.
On 21 May 2024, the European Council adopted the 'Hydrogen and decarbonised gas market package', a significant development in the EU gas market. The package consists of a recast of the gas regulation and gas directive from 2009, with a focus on supporting renewable and low-carbon gases, especially hydrogen. The Gas Package, approved by the European Parliament and awaiting publication in the Official Journal of the European Union, aims to reform the regulatory framework to enable the deployment of these gases. It sets out rules for the integration of renewable and low-carbon gases into the existing gas network, including dedicated cross-border hydrogen infrastructure and a competitive hydrogen market. The package emphasizes transparency and non-discrimination in the transport, supply, and storage of natural gas and hydrogen. Key elements of the package involve unbundling and third-party access to ensure a competitive hydrogen market. Network operators will play a crucial role in the development of the hydrogen market through a ten-year network development plan. The Gas Regulation within the package includes obligations on member states to enable access to renewable and low-carbon gases, assess new investments for renewable gas usage, and provide network tariff discounts for users of renewable and low-carbon gases.
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