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Hydrogen: completing the regulatory puzzle
January 28 @ 10:00 - 12:30
This new workstream aims to bring together stakeholders, including policymakers and industry on a regular basis to discuss substantive issues around the topic of hydrogen, informed by original intellectual input from ERCST.
Drawing on the lessons of a previous stock-take on the topic discussed in December 2021, this meeting is intended to identify main gaps in the current EU regulatory framework for hydrogen following the publication of the hydrogen and decarbonized gas market package and other relevant legislative acts, such as the Delegated Act on Renewable Fuels of non-Biological Origin (RFNBO).
Regulation for hydrogen should contribute to the creation of a hydrogen market that, on the one side helps Europe to decarbonize, and on the other side makes the EU a world leader in this technology. Another important goal of the regulation should be to send a clear message to the market in order to increase predictability and security for investments.
While at first glance the theory looks easy, transitioning from political willingness to implementation has proven everything but simple. As the hydrogen regulatory puzzle is being completed an evaluation of the regulatory framework cannot fail to address first and foremost, if the proposed framework has the potential to unlock investments in hydrogen. Secondly, if the regulatory framework is comprehensive and completes the puzzle. And thirdly, what the elements are that despite being included in the regulation may act as bottleneck or slow the pace towards the deployment of a hydrogen economy.
Nor can we ignore the question if the right balance between regulation and market-based instruments has been achieved as an extensive use of command-and-control measures could lead to a very expensive and cost-inefficient decarbonization effort making public pockets, businesses and consumers shoulder an excessive financial burden.
In this context and during this meeting we would like to reflect upon the following questions:
- Has the Commission proposed a comprehensive regulatory framework that supports the creation of a hydrogen economy in the EU? If not, what are the missing pieces?
- What are those elements of the regulation that despite being included may act as a bottle neck or slow the pace of deployment of a hydrogen economy?
- Are we making an excessive use of regulation vis a vis market-based instruments such as carbon pricing?
- Is there a comprehensive definition for low carbon hydrogen that supports investments in this technological landscape?
- Does the delegated act on RFBOs act as a bottleneck for the deployment of a hydrogen economy?