Publications » Position papers » Pragmatic regulatory framework necessary for hydrogen market
Pragmatic regulatory framework necessary for hydrogen market
Downloads and links
Recent updates
The signatories of this letter welcome the publication of the drafts for the outstanding RED II Delegated Acts on Article 27.3 (‘Additionality’ Delegated Act) and Article 28.5 (Greenhouse Gas Reduction Methodology) and appreciate the European Commission’s call for feedback.
For meeting the climate neutrality targets set by the European Green Deal, our sectors crucially depend on the large-scale availability of renewable fuels of non-biological origin (RFNBOs), supplied cost-competitively and securely across Europe. The signatories strongly support avoiding the double counting of renewable electricity or emitted greenhouse gases through appropriate certification mechanisms and the establishment of viable sustainability criteria though the RED II Delegated Acts. These shall ensure a clear and certain framework for investments.
Achieving the Commission's increased ambition levels such as RFNBOs sub-quotas as outlined in the REPowerEU Plan, European Hydrogen Strategy, revision of the Renewable Energy Directive, ReFuelEU Aviation or discussed in FuelEU Maritime require a safe investment environment and sufficient planning certainty for the rapid scale-up of renewable fuels of non-biological origin, hydrogen derivatives such as synthetic fuels, and underlying technologies such as Carbon Capture and Utilisation (CCU).
Overly restrictive requirements, the absence of clear guarantees on the availability of renewable electricity and relevant dedicated infrastructure have the opposite effect of curtailing investments in production capacity and imposing undue administrative burdens. The signatories therefore propose the following changes to the draft acts, which are necessary to enable the market ramp-up and fast decarbonisation.
The signatories recommend the European Commission to:
1. Prolong the proposed transitional period and grandfathering to at least 2030.
2. Extend the geographical correlation beyond the proposed concept, provided there is sufficient or potential interconnection capacity between bidding zones.
3. Set at least the proposed monthly temporal correlation as a default. A change to a more granular correlation should be subject to a corresponding Impact Assessment by the Commission.
1. Reconsider restrictions on industrial CO2 use.
2. Broaden the definition of possible CO2 sources limited by carbon pricing requirements.
3. Allow RCFs producer to use PPA’s and other measures to replace the electricity displaced by the production of an RCF (and RFNBO) instead of national average grid GHG factors.
Read the full text below.
Signatories:
Download this publication or visit associated links
Developed with the support of the Offshore Wind Foundation Alliance and European Wind Tower Association, the position paper outlines the strategic importance of wind components for Europe’s green transition and calls for targeted measures to strengthen their role within the NZIA.
Brussels, 2 April 2025 - The latest data unveiled by the OECD in its meeting in Paris draw an extremely worrying picture, where global steel excess capacity is expected to grow from an estimated 602 million tonnes in 2024 to 721 million tonnes by 2027 – over five times the EU's steel production. The European steel industry - already severely hit by the spill-over effects of global overcapacity and the U.S. steel import tariffs - reiterates the crucial need for strict and effective EU post-safeguard measures to ensure its survival.
Brussels, 19 March 2025 – The Steel and Metals Action Plan, unveiled today by the European Commission, provides the right diagnosis to the existential challenges facing the European steel industry. Concrete measures need to follow swiftly to reverse the decline of the sector, re-establish a level playing field with global competitors, and incentivise investment and uptake of green steel in the market.