EU Lawmakers Urge Weaker Low-Carbon Hydrogen Rules to Boost Production and Industrial Resilience
Key Insights
A coalition of conservative and right-wing EU lawmakers has urged the European Commission to relax its stringent low-carbon hydrogen production criteria.
The lawmakers argue that current draft rules jeopardize Europe's industrial resilience, climate targets, and strategic autonomy by limiting production pathways.
Key demands include allowing nuclear power, easing natural gas emission thresholds, and simplifying real-time matching requirements for electrolysers.
They also advocate for a 'grandfathering clause' for projects with final investment decisions before August 2028 to prevent disruption.
A coalition of conservative and right-wing European Union lawmakers, primarily from the European People's Party (EPP) and the European Conservatives and Reformists (ECR) group, has formally urged the European Commission to relax its stringent criteria for low-carbon hydrogen production. In a letter dated July 1 and addressed to Commission President Ursula von der Leyen, Vice-President Teresa Ribera, and Energy Chief Dan Jørgensen, 55 lawmakers argued that the current draft Delegated Act is "restrictive and unworkable," threatening Europe's industrial resilience, climate targets, and strategic autonomy.
The core of the dispute revolves around the definition of 'low-carbon' hydrogen, which currently requires process emissions to be at least 70% lower than standard natural gas production. This threshold is typically met through technologies like carbon capture and storage (CCS) or by utilizing nuclear power to split water. The lawmakers contend that the existing framework, particularly its default emission values for natural gas, makes it excessively difficult for industries facing challenging market conditions to meet decarbonization mandates.
Key demands outlined in the letter include lowering the default emission values for natural gas and allowing producers to use certified upstream emission values, thereby avoiding a surcharge applied when such data is absent. They also called for the use of country- or region-specific default values, emphasizing that the regulatory framework should not impede imports of low-carbon hydrogen from international partners. Furthermore, the lawmakers pressed for the inclusion of all zero- and low-emission electricity, including nuclear power, when delivered under long-term power purchase agreements, rather than solely focusing on renewables.
A significant point of contention is the Commission's proposed complicated rules on real-time matching of power production with electrolyser operation, which the lawmakers urged to be abandoned. They also advocated for a "grandfathering clause" that would apply only existing regulations to hydrogen projects where the final investment decision is taken before August 5, 2028. The absence of such transitional arrangements, they argued, could disrupt several flagship low-carbon fuel initiatives currently under development across the EU. The letter, which also received endorsement from German Social Democrat Jens Geier, who steered the primary legislation through parliament, underscores a growing industry and political pushback against what is perceived as an overly prescriptive regulatory approach to hydrogen.