EU Adopts Groundbreaking Legislation to Support Hydrogen and Low-Carbon Gases
Key Ideas
  • The European Council has adopted the 'Hydrogen and decarbonised gas market package' to reform the existing regulatory framework and support the deployment of renewable and low-carbon gases, particularly hydrogen.
  • The Gas Package sets out rules for the integration of renewable and low-carbon gases into the gas network, establishment of cross-border hydrogen infrastructure, and creation of a competitive hydrogen market.
  • Key aspects of the legislation include regulations on market design, unbundling, third-party access, and the development of a ten-year network plan by hydrogen transmission and distribution operators.
  • The Gas Package includes measures such as enabling access of renewable and low-carbon gases to the market, discounts on network tariffs, and assessments for new investments to facilitate the use of these gases.
On May 21, 2024, the European Council approved the 'Hydrogen and decarbonised gas market package,' representing a significant development in the EU gas market. This package aims to reform the current regulatory framework to support the deployment of renewable and low-carbon gases, with a particular focus on hydrogen. The package includes a recast of the gas regulation and gas directive, which will come into effect after publication in the Official Journal of the European Union. The legislation covers the integration of renewable and low-carbon gases into the gas network, the creation of cross-border hydrogen infrastructure, and the establishment of a competitive hydrogen market. It also outlines rules on market design, unbundling, and third-party access, with requirements for hydrogen operators to keep separate accounts for each activity. Furthermore, the legislation mandates hydrogen transmission and distribution operators to develop a ten-year network plan to identify key infrastructure needs and investment opportunities. Additionally, the legislation includes measures to promote the offtake of renewable and low-carbon gases, such as enabling market access, assessing new investments, and introducing network tariff discounts. Overall, the Gas Package sets a positive tone for the advancement of hydrogen and low-carbon gases within the EU's energy transition.
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