The European Union is leading the ecological transition on the roads, although in the United States we have not been too far behind either… until now. Just on the other side of the Atlantic, they have just approved subsidies for more futuristic vehicles than electric ones (and no, they are not going back to gasoline, nor are they betting everything on hybrids).
Subsidies with which the EU is ahead of us: we have a problem
The electrification of transportation has been a major focus in Europe’s effort to reduce emissions and combat climate change. Significant investments have been made in battery electric vehicles (BEVs), charging infrastructure, and consumer incentives.
However, experts argue that while BEVs are an important part of the solution, electrification alone will not be enough to fully decarbonize the transport sector. BEVs face challenges with range, charging times, and access to renewable electricity sources.
There are also questions about whether the power grid can handle large increases in electricity demand from transport electrification. This is why many see hydrogen fuel cell vehicles (HFCVs) as a critical complementary technology. HFCVs offer rapid refueling, long range, and only emit water.
When paired with renewable hydrogen production, HFCVs can provide completely clean transportation. The EU recognizes the need for a mix of electrification solutions. But so far, subsidies and policy support has heavily favored BEVs over HFCVs.
Hydrogen adoption at full speed in the European Union: how we are being left behind
The European Union has set ambitious climate goals that aim to drastically reduce emissions across all sectors. A key part of this plan is transitioning away from fossil fuel vehicles towards zero-emission options.
So far, the focus has been primarily on battery electric vehicles (BEVs) powered by renewable electricity. However, EU policymakers recognize that while BEVs are crucial, relying solely on them is likely insufficient to fully decarbonize transportation.
This is why the EU also aims to promote the adoption of hydrogen fuel cell electric vehicles (FCEVs). Hydrogen is seen as a complementary clean fuel that can address some of the limitations of BEVs. The goal is to develop a robust market for FCEVs alongside BEVs.
Doing so provides consumers and commercial fleets more choice in available zero-emission vehicles. It also hedges against potential bottlenecks in battery production. With strong policy support, the EU intends for hydrogen vehicles to claim a sizable portion of car sales by 2030.
America, worried: these are the problems behind hydrogen subsidies
There are concerns that the new EU subsidies may end up supporting hydrogen production from fossil fuels, rather than truly clean hydrogen from renewable energy. Critics worry that the scheme’s sustainability criteria are too lax, which could allow hydrogen from fossil gas to receive significant funding.
Some environmental groups argue this undermines the EU’s climate goals and keeps the region locked into fossil fuel dependency. They want stronger regulations to ensure subsidies exclusively back green hydrogen production using renewable electricity or biomass.
Without proper oversight, the subsidies could be exploited to prolong the life of polluting industries. There are calls for the funding to mandate emissions reductions, in order to align with Europe’s aim of reaching carbon neutrality.
One of the main issues in this regard is the potential for extracting it with non-renewable means, something that we in America are still exploring to come up with solutions such as green or blue hydrogen.
At this point, it is inevitable that hydrogen subsidies are an ideal opportunity to improve citizens’ access to zero-emission cars. As you can see, not everything is going to be hybrids and electrics, there are also options that will lead the way towards completely clean and renewable roads.
