European Commission Delegated Regulation on Low-Carbon Hydrogen and Fuels
Key Ideas
- The European Commission has published a delegated regulation outlining a methodology for assessing greenhouse gas emission reductions from low-carbon fuels, in line with EU Directive 2024/1788.
- The methodology for low-carbon hydrogen and fuels aims to contribute to the EU's goal of climate neutrality by 2050, supporting sectors like aviation and shipping that require alternatives to electrification.
- Hydrogen and related fuels must achieve a 70% reduction in greenhouse gas emissions compared to unabated fossil fuels to be considered low-carbon, with various production pathways like CCUS and low-carbon electricity sources.
- The regulations will apply to both EU and non-EU hydrogen producers, and once adopted, will go through a approval process by the European Parliament and the Council before coming into effect.
- Future plans by the European Commission include assessing alternative pathways for energy systems, maintaining transparency in the production of low-carbon hydrogen, and launching public consultations on methodologies for nuclear power.
The European Commission recently published a delegated regulation that establishes a methodology for evaluating greenhouse gas emission reductions from low-carbon fuels, as required by EU Directive 2024/1788. This methodology will complement existing frameworks for renewable hydrogen and non-biological renewable fuels. The regulation was developed after an extensive consultation process with stakeholders and member states, with input gathered through multiple expert group meetings. It aims to support the EU's ambitious goal of achieving climate neutrality by 2050.
The focus on low-carbon hydrogen is crucial for sectors like aviation, shipping, and certain industries where electrification is not currently feasible. The regulation sets a threshold of 70% greenhouse gas reduction compared to unabated fossil fuels for hydrogen and related fuels to be classified as low-carbon. Various production methods, such as carbon capture, utilization, and storage (CCUS) with natural gas, are considered in achieving this reduction, alongside low-carbon electricity sources.
The life-cycle approach outlined in the regulation accounts for emissions across all stages of production and use, including extraction, transportation, and actual CO2 capture rates. The regulation also addresses the diversity of energy mixes in EU member states, allowing for flexibility in low-carbon hydrogen production pathways.
Certification under these regulations will apply to both domestic and non-EU hydrogen producers exporting to the EU, with reliance on established international certification systems. The process for adoption involves scrutiny by the European Parliament and the Council, with the regulations becoming effective 20 days after publication in the Official Journal of the European Union.
Looking ahead, the European Commission plans to evaluate the impact of alternative energy pathways and emissions reductions, ensuring fairness in renewable electricity procurement. Additionally, a public consultation on applying power purchase agreements to nuclear power is scheduled for 2026 to enhance transparency in low-carbon hydrogen production.
Topics
Production
Renewable Energy
Sustainability
Greenhouse Gas Emissions
Regulation
European Union
Climate Neutrality
Latest News