EU's Comprehensive Framework for Low-Carbon Hydrogen: A Path Towards Cleaner Energy
Key Ideas
  • The European Commission emphasizes low-carbon 'blue' hydrogen as a crucial component of the EU's energy future alongside renewable 'green' hydrogen.
  • New Delegated Act by the EU provides a methodology to define, calculate emissions savings, and classify low-carbon fuels, including hydrogen, to promote a transition towards cleaner energy sources.
  • Hydrogen producers in the EU now have clarity on categorizing their hydrogen as 'green' or 'blue,' enabling them to benefit from network tariff discounts and simplified state aid under the Clean Industrial Deal State Aid Framework.
  • The Delegated Act not only addresses emissions from low-carbon hydrogen but also covers various production routes, emphasizing the importance of reducing emissions across the entire life cycle of the fuel.
The European Commission is reinforcing its commitment to promoting low-carbon 'blue' hydrogen as an essential element in the EU's future energy composition, standing alongside renewable 'green' hydrogen. On July 8, 2025, the Commission unveiled a Delegated Act outlining a comprehensive methodology to evaluate emissions savings in low-carbon fuels, including hydrogen, aligning with the EU's goal of facilitating the uptake of low-carbon fuels in the region. This initiative stems from the Hydrogen and Decarbonized Gas Market Package adopted in 2024, which supports the integration of renewable and low-carbon hydrogen in the EU's energy sector. The Delegated Act provides clarity for hydrogen producers by distinguishing between 'green' and 'blue' hydrogen, making them eligible for various benefits such as network tariff discounts and streamlined state aid approval. By setting strict criteria for emissions reductions, the EU aims to foster the growth of renewable and low-carbon hydrogen markets while phasing out grey hydrogen. The Delegated Act not only focuses on low-carbon hydrogen but also encompasses diverse production pathways, highlighting the importance of reducing emissions throughout the fuel's life cycle. The EU's push for a cleaner energy future extends beyond hydrogen, with plans to evaluate the role of nuclear energy by 2028. This legislative framework will undergo review by the European Parliament and Council before becoming enforceable, showcasing the EU's commitment to sustainable energy practices and emission reduction targets.
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