“DÜSSELDORF/BRUSSELS. Without hydrogen, the EU's strict climate targets will be almost impossible to achieve. Almost all experts agree on this. It will be needed, at least temporarily, for energy-intensive sectors that are difficult to electrify.
These include the chemical, steel, and cement industries, as well as aviation and shipping.
The key here is that not too much CO2 is released during hydrogen production. Low-carbon hydrogen and hydrogen from renewable energies will be used. Their CO2 footprint should be at least 70 percent lower than that of conventional fossil fuels. This is what the EU has stipulated.
But the devil is in the details: What does the 70 percent refer to? This has been set for hydrogen from renewable sources since 2023, but not for low-carbon hydrogen. This is set to change soon, also to provide investors with planning certainty. The European Commission has now presented a so-called delegated act, which the industry has long awaited with concern.
The new rules are intended to apply to domestic producers as well as to imports from non-EU countries.
They primarily concern hydrogen produced from natural gas with subsequently captured CO2 (so-called blue hydrogen). Hydrogen from nuclear power is also explicitly mentioned in the document, but whether it will be recognized as low-carbon remains open for now. The Commission is expected to launch a public consultation on this by summer 2026.
A first draft of the legislation caused a stir in the industry a few weeks ago, fearing that the hydrogen ramp-up would be overregulated. The original version, for example, assumed high, blanket methane emissions from natural gas production, which would have made it more difficult to achieve the 70 percent reduction target for blue hydrogen. The Commission has responded to the criticism and reduced the standard values for greenhouse gas emissions from gas production by two-thirds. The Commission has also taken action elsewhere accommodating the gas industry.
"Hydrogen will play a key role in the decarbonization of our economy," said Energy Commissioner Dan Jørgensen on Wednesday. With a pragmatic definition of low-carbon hydrogen that takes into account the energy mix of EU countries, the EU is providing investors with the necessary certainty.
Industry and industry associations do not fully share this view; while they are less dissatisfied with the changes compared to the draft from the end of April, they are far from happy. While the first draft was so restrictive that it effectively prevented the hydrogen ramp-up, the current version is a "step in the right direction," said Kerstin Andreae, CEO of the German Association of Energy and Water Industries (BDEW). However, the legal act remains "insufficiently practical in certain points."
The Gas and Hydrogen Industry Association was even more reserved, deriving "only faint hopes for the hydrogen ramp-up" from the now available clarification of the delegated act.
Association board member Timm Kehler spoke that the Commission is throwing the hydrogen economy "a lifeline," however: "Whether this will truly be enough to ensure survival and thus fill the hydrogen core network" remains "very questionable."
The chairman of the Hydrogen Europe association, Jorgo Chatzimarkakis, said: "The current regulation entails disproportionate reporting requirements and bureaucratic hurdles that many hydrogen pioneers will find difficult to overcome." This poses a risk that investors will be deterred.
The German Chemical Industry Association (VCI) appealed to the German government to vigorously advocate for improvements. EU member states can halt the proposal or force changes, but they require a qualified majority to do so. The European Parliament is also involved. The VCI is calling for more flexible and practical criteria, for example, when calculating emissions from electricity demand for low-carbon hydrogen. The assessment of methane emissions generated during the production and transport of natural gas should also not hinder the economic viability of gas-based hydrogen projects.” [1]
Not long ago, the prevailing view in the EU was that the more you put pressure on businesses and citizens, the sooner you would find yourself in a carbon-free paradise. Such idiots are waking up now. The transition to paradise must pay off, otherwise there will be no transition.
The European Union has indeed been at the forefront of setting ambitious climate goals, such as achieving carbon neutrality by 2050, as part of the European Green Deal. This involves significant efforts to reduce greenhouse gas emissions across various sectors, including industry, energy, transport, and agriculture.
However, the process of transitioning to a carbon-neutral economy is complex and has faced criticism and debate, particularly regarding its economic implications. While some studies suggest potential benefits, such as GDP growth, job creation, and energy independence, reaching net-zero emissions by 2050 requires significant investment and can have negative impacts on industries and trade.
Here are some key points highlighting the complexities and criticisms surrounding the EU's approach:
Economic viability and competitiveness: Stricter environmental regulations, like the tightening of the EU Emissions Trading System (ETS) and the introduction of the Carbon Border Adjustment Mechanism (CBAM), raise concerns about the competitiveness of EU industries and the potential for "carbon leakage," where production moves to countries with less stringent climate policies.
There are also concerns that these policies could lead to higher costs for businesses and citizens.
Impact on international trade and developing countries: The CBAM, intended to prevent carbon leakage, has sparked debate regarding its compatibility with World Trade Organization rules and its potential impact on developing countries that export carbon-intensive goods to the EU. Some proposals suggest supporting these countries with technology transfer and green finance to mitigate negative effects and promote their own green transitions.
Effectiveness of policies: While the EU has achieved significant emission reductions, critics question whether the current pace is sufficient to meet the ambitious 2030 and 2050 targets. Concerns also exist about the reliance on carbon credits and the lack of clarity regarding how these will be effectively managed and verified.
Public perception and political feasibility: Despite widespread public support for climate action, there are concerns about the financial burden on households and industries, particularly in the context of rising energy prices. Political discourse surrounding climate policies can also influence public opinion and potentially undermine support for ambitious action, according to research from Bruegel.
In conclusion, while the EU's commitment to climate neutrality is a significant step towards a sustainable future, the path to achieving this goal is fraught with economic, social, and political challenges. It requires careful consideration of the costs and benefits, as well as the implementation of flexible and supportive measures that ensure a fair and equitable transition for all involved. Dream of it.
1. Ein "Rettungsring" für die Wasserstoffwirtschaft: Lange fürchtete die Industrie, die EU werde den Hochlauf des Gases kaputt regulieren. Nun gibt es Anpassungen. Frankfurter Allgemeine Zeitung; Frankfurt. 11 July 2025: 19.
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