EU's Ambitious 2040 Emissions Target Lacks Explicit Hydrogen Pathway, Raising Industry Concerns
Key Insights
The European Union has proposed a binding 90% net greenhouse gas emissions reduction target by 2040, a critical step towards its 2050 climate neutrality goal.
Despite hydrogen's recognized role in decarbonization, the detailed EU Commission proposal notably omits explicit pathways, specific targets, or dedicated support mechanisms for hydrogen deployment.
Industry leaders and hydrogen sector representatives have voiced concerns, emphasizing the need for clearer policy signals and concrete implementation strategies to unlock necessary investments.
This policy ambiguity could potentially hinder the scaling of green hydrogen projects and impact investor confidence across the European clean energy landscape.
Brussels, Belgium – The European Commission has unveiled its ambitious proposal for a 90% net reduction in greenhouse gas emissions by 2040, a pivotal interim target on the path to achieving climate neutrality by mid-century. The recommendation, presented as a cornerstone of the EU’s climate agenda, aims to provide long-term predictability for investors and policymakers across the bloc, guiding the transition away from fossil fuels.
However, a notable omission within the detailed proposal has drawn sharp criticism and concern from the burgeoning hydrogen industry. While the EU has consistently championed hydrogen as a key vector for decarbonizing hard-to-abate sectors such as heavy industry and transport, the 2040 emissions target framework does not explicitly outline specific roles, dedicated support mechanisms, or concrete deployment pathways for hydrogen technologies. This absence contrasts with the EU’s broader hydrogen strategy, which includes ambitious production and import targets under initiatives like REPowerEU.
Industry figures have been quick to highlight this perceived policy gap. Jorgo Chatzimarkakis, CEO of Hydrogen Europe, stated in a recent briefing, “While the overall ambition is commendable, the lack of explicit mention and detailed strategy for hydrogen within this critical 2040 framework is a missed opportunity. We need more than just general acknowledgement; we require clear, actionable policy signals to de-risk investments and accelerate the build-out of a robust hydrogen economy.” He emphasized that without such clarity, capital allocation for large-scale green hydrogen projects, including production facilities and essential pipeline infrastructure, could face significant delays.
Market analysts suggest that this ambiguity could dampen investor enthusiasm, particularly for projects requiring substantial upfront capital and long-term regulatory certainty. The European hydrogen sector, which has seen significant private and public investment pledges, relies heavily on predictable policy environments to justify financial commitments. The current proposal, by not explicitly delineating hydrogen’s role in achieving the 2040 target, may inadvertently create uncertainty that could divert investment to regions with more explicit and supportive hydrogen policies.
Furthermore, the proposal’s focus on broad sectoral decarbonization without specific technology-agnostic yet hydrogen-inclusive pathways could complicate the integration of hydrogen into national energy plans. Member states, tasked with developing their own contributions to the 2040 target, might struggle to prioritize hydrogen investments without clearer guidance from the Commission. This could slow the development of critical demand-side applications and the necessary infrastructure for hydrogen distribution and storage, hindering the EU’s ability to meet its broader climate objectives efficiently.