What are the reactions of the industry to the green hydrogen standard announced by the EU？

The EU's newly published enabling law, which defines green hydrogen, has been welcomed by the hydrogen industry as bringing certainty to the investment decisions and business models of EU companies. At the same time, the industry is concerned that its "stringent regulations" will increase the cost of renewable hydrogen production.

Francois Paquet, Director of Impact at the European Renewable Hydrogen Alliance, said: "The bill brings much-needed regulatory certainty to lock in investment and deploy a new industry in Europe. It's not perfect, but it provides clarity on the supply side."

Hydrogen Europe, the EU's influential industry association, said in a statement that it has taken more than three years for the EU to provide a framework to define renewable hydrogen and hydrogen-based fuels. The process has been long and bumpy, but as soon as it was announced, the bill was welcomed by the hydrogen industry, which has been eagerly awaiting the rules so that companies can make final investment decisions and business models.

However, the association added: "These strict rules can be met but will inevitably make green hydrogen projects more expensive and will limit their expansion potential, reduce the positive impact of economies of scale and affect Europe's ability to meet the targets set by REPowerEU."

In contrast to the cautious welcome from industry participants, climate campaigners and environmental groups have questioned the "greenwashing" of lax rules.

Global Witness, a climate group, is particularly angry about rules that allow electricity from fossil fuels to be used to produce green hydrogen when renewable energy is in short supply, calling the EU authorisation bill "the gold standard for greenwashing".

Green hydrogen can be produced from fossil and coal power when renewable energy is in short supply, Global Witness said in a statement. And green hydrogen can be produced from existing renewable energy grid electricity, which will lead to the use of more fossil fuel and coal power.

Another NGO, Oslo-based Bellona, said that a transition period until the end of 2027, which would allow forerunners to avoid the need for "additionality" for a decade, would lead to increased emissions in the short term.

After the two bills are passed, they will be forwarded to the European Parliament and the Council, which have two months to review them and decide whether to accept or reject the proposals. Once the final legislation is completed, the large-scale use of renewable hydrogen, ammonia and other derivatives will accelerate the decarbonization of the EU's energy system and advance Europe's ambitions for a climate-neutral continent.