EU Parliament and Council have reached a provisional agreement on updated EU rules to decarbonize the gas sector and establish a hydrogen market, as reported by ESG Today on December 11. The new rules aim to promote the adoption of renewable and low-carbon gases while ensuring EU citizens’ stable access to affordable energy. To achieve these targets, the new regulations will facilitate the integration of renewable gases and hydrogen into the existing gas grid and allow discounts on tariffs for the cross-border transport of these gases. In addition, the agreement plans for a common certification system for low-carbon gases to ensure consistency in assessing the emissions footprint of different gases, allowing member states to effectively compare and consider them in their energy mix.

The European Commission proposed the Decarbonized Gases and Hydrogen Package in December 2021 as a pivotal part of the European Green Deal. The package envisions a new market design for hydrogen in Europe. For instance, the recent agreement plans to establish a new governance structure in the form of the European Network of Network Operators for Hydrogen (ENNOH) to boost dedicated hydrogen infrastructure, cross-border coordination, and interconnector network construction. Furthermore, consumers could also benefit from the new rules, which enable them to switch energy suppliers more easily and provide access to effective price comparison tools for accurate, fair, and transparent billing information. By accelerating a shift from fossil fuels to low-carbon and renewable gases, the new rules would pave the way for Europe’s 2050 carbon neutrality goal.

S****ources:

https://www.esgtoday.com/eu-agrees-on-new-regulation-to-decarbonize-gas-and-grow-hydrogen-market/

https://ec.europa.eu/commission/presscorner/detail/%20nl/ip_23_6085