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EU Council adopts conclusions on renewable hydrogen industrial policy

The European Union Council has officially adopted conclusions in response to the Court of Auditors’ special report regarding the EU’s industrial policy on renewable hydrogen. The conclusions express support for the report’s findings, advocate for the swift implementation of the EU’s regulatory framework, encourage the development of an interconnected transportation network, and urge the European Commission to implement measures that bolster both the competitiveness of EU industry and investment security.

These conclusions stem from a thorough examination of the Special Report, which evaluates the European Commission’s effectiveness in establishing conducive conditions for emerging renewable and low-carbon hydrogen markets. The report scrutinises various EU policy communications and legislative initiatives, including the Hydrogen Strategy, the REPowerEU Plan, the Renewable Energy Directive (RED III), the ReFuelEU Aviation Regulation, the FuelEU Maritime Regulation, the Net-Zero Industry Act, and the Gas Package, alongside funding programmes aimed at advancing the hydrogen value chain.

The Council acknowledges that significant legislative proposals, such as the Gas and Hydrogen Package and the Net-Zero Industry Act, have already been adopted, which will aid the EU in achieving its energy and climate objectives while enhancing the competitiveness of its strategic net-zero industry. However, to effectively foster the European hydrogen ecosystem, the swift implementation of the existing legal framework is deemed essential.

Additionally, the conclusions highlight the critical role of Member States’ national energy and climate plans in relation to EU-level targets for hydrogen production and imports. The Council emphasises that establishing interconnected European networks is vital for enabling cross-border hydrogen transportation and storage, effectively linking producers and consumers.

Furthermore, the conclusions call on the European Commission to heed the recommendations outlined in the European Court of Auditors’ report and to follow up with cohesive actions that balance the need for competitive advantages for European industry with the necessity of ensuring investment security.

When the European Court of Auditors releases a special report, the Council drafts conclusions aimed at addressing the identified challenges. The special report titled “The EU’s industrial policy on renewable hydrogen – Legal framework has been mostly adopted – time for a reality check” was published on 17 July 2024.