European Commission

Solution Statement

The European Commission is putting in place a regulatory framework to kick start and scale up the production and consumption of renewable hydrogen in the European Union.

This includes policy proposals to set sector-specific quotas for the consumption of renewable hydrogen in the industry and transport sector, as well as a system of certification to track the CO2 emissions and sustainability criteria associated with the production and transport of hydrogen.

The European Commission will set out a cooperation process on renewable hydrogen with the African Union in the framework of the Africa-Europe Green Energy Initiative.

Furthermore, this includes financial support for the development of renewable hydrogen through the post-COVID recovery fund, for hydrogen infrastructure for both industry and transport applications, and a proposal for preferential tax rates for renewable hydrogen. 

New funding has been made available to support continued research and innovation in renewable hydrogen.

Finally, a legislative proposal will be put in place that sets rules for ownership, open access and support the emergence of competitive markets for hydrogen.

Together with its co-legislators, the European Commission will commit to transform these proposals into legislation as soon as possible to provide certainty and an enabling environment for the full hydrogen ecosystem.

Challenge Statement

The production and consumption of renewable hydrogen, as well as markets, are not existing yet in the European Union.

To achieve climate neutrality, renewable hydrogen will be need to be scaled up and a full hydrogen ecosystem will need to be developed in the next decade to achieve climate neutrality in 2050. By 2030, the EU intends to have installed 40 GW of renewable hydrogen electrolyzers.

The key challenge is to create a demand for renewable hydrogen in the near future, which allows for investments in the scale up of renewable hydrogen production. This is why the European Commission has put in place proposal to set future quotas.

Another challenge is to ensure that the market can distinguish renewable hydrogen, and that there are strong criteria to ensure its sustainability. This is why the European Commission is proposing to put forward a certification system for renewable hydrogen.

Finally, renewable hydrogen is not cost-competitive with fossil-based hydrogen, and the infrastructure to bring renewable hydrogen to the end-consumer is limited. This is why the European Commission is putting forward different financial instruments that supports the production of renewable hydrogen, whilst ensuring a competitive environment.

Energy Compact Indicators

Produce 10 million tons of renewable hydrogen by 2030, requiring EUR 320-460 billion in investments in the 27 EU Member States

  • Putting in place sector-specific quotas for the use of renewable hydrogen
  • Provide a certification scheme for renewable hydrogen
  • Support the development of hydrogen infrastructure

Support international R&D cooperation under Mission Innovation, including EUR 1 billion for a Clean Hydrogen research and innovation hub.

  • Financing to support research and innovation in renewable hydrogen
  • Strengthen bilateral and multilateral cooperation on renewable hydrogen

Achieve climate neutrality in 2050, including through the use of renewable hydrogen in hard-to-decarbonize sectors in the 27 EU Member StatesLegislative requirement to achieve net-zero climate in 2050

The capital cost of the hydrogen generation plant and Fuel Cell system is very high making P2P & energy storage solution unviable.  For the overall system to become viable, ramping up of manufacturing capability and setting up of manufacturing facilities in India needs to be incentivized. The overall round-trip efficiency also needs to be improved by way of technical improvements to reduce the requirement of renewable power