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EU Green Deal
The EU Green Deal consists of a set of legislative and non-legislative acts that set a framework for the European Union to reach the 2015 Paris Agreement objectives and achieve net “climate neutrality” by 2050, as the first continent to do so.
On 11 December 2019, the EU Green Deal was launched via a communication from the European Commission. It plans a roadmap of key actions for the years to come. In the words of President von der Leyen, “the EU Green Deal is the EU’s new growth strategy.” In the aftermaths of the Covid-19 crisis, the President reaffirmed the essence of the Green Deal, which should be used both as "a compass" and "a motor for the recovery." The EU Green Deal key actions include the European Climate Law to enshrine the climate neutrality objective by 2050 in EU law (the overarching goal of the EU Green Deal) and the introduction of the Fit for 55 and the Hydrogen and Decarbonised Gas Market packages. The latter two consist of major revisions of the existing legislation in the fields of energy, climate, and transport, as well as the introduction of new legislation.
In response to the war in Ukraine, the European Commission continued the EU Green Deal objectives with the REPowerEU, which aims to accelerate the clean energy transition and enhance Europe’s energy security. At the start of her second presidency, Ursula von der Leyen introduced the Commission’s Competitiveness compass and the Clean Industrial Deal in January 2025. These actions indicate that the Commission's new cycle will focus on competitiveness and industrial policy, while building on the progress made by the Green Deal.
What's in it for hydrogen?
In the various sectors tackled by the Green Deal, hydrogen is recurrently mentioned as part of the key solutions to decarbonise the economy.
Decarbonising industry is a priority of the European Green Deal. The Commission explicitly recognises the importance of supporting the central role that clean hydrogen and fuel cells can play in industrial policy to help decarbonise. While hydrogen can indeed be used as a clean feedstock, other priority areas for industrial decarbonisation include energy storage and CCUS, where hydrogen also has a large potential to showcase. Under the the EU Industrial Strategy developed together with the Green Deal, priority areas indeed include clean hydrogen, fuel cells, energy storage and CCUS.
The Commission's strategy emphasises decarbonising energy-intensive sectors like steel, cement, and chemicals. It aims to support technology deployment, increasing opportunities for hydrogen in decarbonisation. Clean hydrogen is effective for these sectors, and for some, such as steel, it might be the only option.
As a new tool, the Carbon Border Adjustment Mechanism aims to protect companies that choose to invest in low-carbon technologies such as clean hydrogen to decarbonise energy-intensive industrial processes.
Hydrogen can play a role also in transport, especially for heavy-duty and long-haul vehicles. Efforts to promote clean mobility are expected to increase fossil fuel costs and reduce cleaner fuel prices, potentially boosting hydrogen's competitiveness. The Commission highlights alternative sustainable fuels, including hydrogen, as crucial for decarbonising transport. Regulatory clarity and financial incentives are being provided to support the production and infrastructure of these fuels.
The abovementioned legislative revisions also aim to accelerate the deployment of zero- and low-emission vehicles and vessels. FCEV (fuel cell electric vehicle) and FCH (fuel cell vehicle) manufacturers, as well as the whole hydrogen and fuel cell value chain players indirectly are involved in creating an incentive framework to scale up and roll out FC mobility technologies and deployment of hydrogen refuelling station infrastructure. In this regard, the Commission aims to complement infrastructure support for Member States and make up for persistent gaps, notably via the launch of new funding calls.
Multimodal transport is also highly promoted as part of the Communication. The planned shift from road to rail and transport for freight is a priority and could foster further development opportunities for FC vessels.
Regarding hydrogen networks the Communication emphasises their role in smart energy infrastructure, calling for the decarbonisation of gas and upgrading existing infrastructure to be climate resilient. Achieving these goals could integrate hydrogen into the gas grid. Gas decarbonisation should be supported by developing decarbonised gases, designing a competitive market, in addition to addressing methane emissions. Smart infrastructure should integrate sectors through renewables, CCUS, and energy storage, with hydrogen playing a key role. The Hydrogen and Decarbonised Gas package, adopted in December 2023, is the main regulatory tool.
To facilitate the achievement of the ambition within the communication, the Commission also supported the emergence of alliances, including the European Clean Hydrogen Alliance, led by the European Commission in partnership with the industry and other stakeholders, and made use of (four hydrogen) IPCEIs (Important Project of Common European Interest) to facilitate State aid and support new innovative value chains, including clean hydrogen.
Links to the original document and additional information:
EU Green Deal Communication COM (2019) 640 final
European Climate Law
European Industrial Strategy
European Clean Hydrogen Alliance
European Circular Economy Action Plan
Communication on European Green Deal Investment Plan COM(2020) 21 final
