Assessing the impact of low-carbon hydrogen regulation in the EU - July 24, 2024

The European Climate Law stipulates a reduction of greenhouse gas emissions (GHG) of 55% by 2030 and aims for climate neutrality of the European economy by 2050. Versatile, indispensable in some sectors, and complementary to electrification, clean hydrogen is a key element in achieving these climate objectives. The hydrogen economy is still in its infancy. Establishing clear and effective regulation, definitions, and certification schemes is a prerequisite for market creation and investments. The report provides detailed results of a specially configured EU electricity market model coupled with an international hydrogen trade model. It assesses various aspects of low carbon regulation with a particular focus on the relative competitiveness of low carbon electrolysis production in Europe, renewable hydrogen production in Europe and low carbon fuel imports