European Union consolidates regulatory framework for decarbonized hydrogen market
- REDAÇÃO H2RADAR
- Jul 11, 2025
- 2 min read
With the launch of a comprehensive methodology for calculating greenhouse gas emissions associated with hydrogen and low-carbon fuels, the European Commission reaffirms its strategic commitment to the energy transition and climate neutrality by 2050. The new regulatory package, the result of extensive consultations and interinstitutional agreements, establishes the legal basis for the development of a competitive, safe, and decarbonized European hydrogen market—a pillar considered vital for the decarbonization of industrial and transport sectors that are difficult to electrify. The measure, aligned with the Hydrogen and Gas Market Directive, complements and strengthens the framework of the Renewable Energy Directive.
Low-carbon hydrogen: Europe's new energy frontier
The new methodology determines that, to be considered low-carbon, hydrogen and related fuels must present a minimum 70% reduction in emissions compared to conventional fossil fuels. This opens the door to multiple technological pathways—such as the use of natural gas with carbon capture and storage (CCUS) or generation from low-carbon electricity sources, including nuclear. The approach is pragmatic and flexible, respecting the diversity of Member States' energy mixes without imposing fixed renewable limits at this time.
This directive provides legal certainty and technical clarity, essential factors for unlocking investment and accelerating the expansion of clean hydrogen production. At the same time, the European Commission commits to reviewing other related frameworks, such as the Renewable Energy Directive, and to launching a public consultation in 2026 on the use of Power Purchase Agreements (PPAs) with nuclear sources for hydrogen production.
Dedicated Infrastructure and Harmonized Rules: Foundations of the European Hydrogen Market
The approved legislative package—comprising Directive (EU) 2024/1788 and Regulation (EU) 2024/1789—modernizes EU natural gas market regulations and creates a new legal framework for hydrogen. It allows part of the existing gas infrastructure to be adapted for hydrogen transport, generating significant savings and accelerating the decarbonization of the European energy grid.
Creating a level playing field between Member States, through standardized certification and unified terminology, is one of the pillars of the new policy. The formation of the European Network of Network Operators for Hydrogen (ENNOH) is another milestone, ensuring technical governance and cross-border integration in the expansion of hydrogen transport infrastructure, one of the main logistical challenges for its large-scale adoption.
Regulatory Security and Industrial Leadership: Europe's Bet for 2050
The Commission's move aims to ensure that Europe maintains its industrial competitiveness amid the global race for the energy transition. Sectors such as aviation, maritime transport, and high-temperature industrial processes, where electrification is not yet viable, will find low-carbon hydrogen as a concrete and strategic alternative.
The adoption of the methodology—required by the Hydrogen and Gas Market Directive itself—occurs ahead of the August 2025 deadline, reflecting the accelerated pace at which the Commission intends to move forward. With the proposal now under review by the European Parliament and the Council, the expectation is that the implementation of the new rules by mid-2026 will enable the construction of a cohesive, reliable market capable of leading the new energy era.
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