Green hydrogen has rapidly evolved to become a strategic pillar of European industrial policy, aiming to achieve climate neutrality by 2050. European Commission President Ursula von der Leyen highlighted the central role of green hydrogen in decarbonizing industries and enabling long-term energy storage. Green hydrogen is produced through electrolysis using renewable sources like solar and wind power, offering a carbon-neutral alternative to fossil fuel-derived hydrogen. While currently a small share of total hydrogen production in the EU, green hydrogen's potential for industrial applications, particularly in hard-to-abate sectors like steel production and transportation, is significant. The literature review emphasizes the benefits of green hydrogen for energy security and its role in transitioning to sustainable energy sources. The EU's ambitious targets aim to increase green hydrogen production to meet the growing demand, with experts believing in the achievability of these goals. By 2030, green hydrogen is anticipated to become more competitive with brown or gray hydrogen, providing affordable decarbonization solutions and contributing to a climate-neutral economy by 2050. The transformative power of green hydrogen lies in its potential to revolutionize European industries, aligning policy ambitions with industrial needs for a sustainable energy transition.