European Parliament and Council have provisionally agreed on updated rules that aim to decarbonize the EU’s gas market and establish a robust hydrogen market.
Once formally adopted and published, these rules will usher in a new era for the energy landscape in Europe, focusing on renewable and low-carbon gases.
The primary goals of the updated rules are twofold: enabling the widespread adoption of renewable and low-carbon gases and crafting a comprehensive market design for hydrogen. With a strong emphasis on sustainability, the rules seek to facilitate the integration of renewable gases into the existing gas grid. The establishment of a hydrogen market design is a crucial step in promoting the growth and standardization of hydrogen use across Europe.
The certification system for low carbon gases, including hydrogen, plays a pivotal role in ensuring a level playing field. By assessing the complete greenhouse gas emissions footprint, this system allows member states to make informed decisions regarding their energy mix. Moreover, the rules focus on creating a seamless framework for the uptake of renewable gases, emphasizing connection to the existing gas grid and offering incentives through discounts on cross-border and injection tariffs.
The potential impact of these rules is far-reaching. By encouraging the use of renewable and low-carbon gases, the EU aims to steer away from fossil fuels, fostering a cleaner and more sustainable energy ecosystem. The establishment of a hydrogen market design sets the stage for increased hydrogen infrastructure, cross-border coordination, and a robust governance structure through the European Network of Network Operators for Hydrogen (ENNOH).
