The European Union has proposed a Delegated Act to define low-carbon hydrogen and fuels as it moves towards climate neutrality by 2050. Hydrogen is seen as a key element in decarbonizing hard-to-abate sectors where electrification is challenging. The Act aims to provide regulatory clarity to investors, enabling them to scale up production and lower costs. Low-carbon hydrogen, which can achieve a 70% reduction in greenhouse gas emissions, can be produced through processes like reforming natural gas with carbon capture or electrolysis using low-carbon electricity. The methodology in the Act considers the emissions throughout the lifecycle of the fuel and accounts for different energy mixes within the EU to promote various pathways for low-carbon hydrogen production. Importantly, the rules will apply to both EU and non-EU producers exporting hydrogen to the EU, with certification through established Voluntary Schemes. The Act will go through a review process involving the European Parliament and the Council before entering into force. The Commission will closely monitor the hydrogen market's progress to ensure the effectiveness of the regulatory framework and identify any barriers to the expansion of the renewable hydrogen market.