Hydrogen Europe: EU’s low-carbon rules improve, but still fall short of market needs

July 10, 2025, by Aida Čučuk

Hydrogen Europe, an association representing the European hydrogen industry, has acknowledged improvements in the final version of the European Commission’s Low Carbon Hydrogen Delegated Act, but noted that the rules still fall short of market needs.

Illustration purposes only; Courtesy of the European Commission

As informed, the European Commission adopted a greenhouse gas (GHG) emission methodology for low-carbon hydrogen and fuels, as set out in the Hydrogen and Gas Market Directive, completing the European Union’s (EU’s) regulatory framework for hydrogen.

In response, Hydrogen Europe said: “While the text falls well short of what is needed for a thriving low-carbon hydrogen market, this final version introduces several improvements compared to the last draft and we welcome the efforts made by the European Commission to take into account the results of the consultation.”

Among other things, the association welcomed the Commission’s proposal to introduce country or region-specific default values for upstream emissions in the 2028 impact assessment, as well as the clarification that biomass or biofuels can now be used to lower the GHG intensity of low carbon fuels when used as fuels driving the process rather than feedstock.

Still, Hydrogen Europe noted that the Commission has not allowed for the sourcing of low-carbon electricity through a power purchase agreement (PPA), and the treatment of hydrogen from nuclear sources remains unchanged, claiming: “This will negatively impact a significant number of projects that will have to report the greenhouse gas emissions intensity of their national electricity grid, even if they are sourcing their electricity from low-carbon sources.”

Jorgo Chatzimarkakis, Hydrogen Europe’s CEO, stated: “We are glad to see that the rules are finally adopted, and we acknowledge improvements from previous versions in reaction to strong pressure from industry, the European Parliament and capitals. However, the low speed of preparation and adoption of this – still very stringent act – are contrary to what Europe needs today in a complex geopolitical landscape. Our common objective of decarbonisation requires clarity and agility, not additional complexity and rigidity. The hydrogen sector deserves more than recognition in speeches; it needs a regulatory environment that supports innovation, scale-up, and practical deployment.”

To note, the Parliament and the Council have two months to examine the Act, and possibly oppose it, before it enters into force. At their request, the “scrutiny” period can be extended by two months. However, the Parliament or Council cannot amend the proposals.