Nearly 100 more organisations have backed calls for the EU to retain its binding green hydrogen mandates after 2030, warning their removal would send “shockwaves” through the market and punish first movers.
It follows the leaking of a European Commission document, which showed Brussels considering replacing the binding targets with a bloc-wide non-binding eight million tonne per year consumption goal.
The letter, originally sent in September with 170 signatories, has now gained backing from 266 players, as the sector seeks reassurance that the bloc will retain its Renewable Energy Directive (RED) III mandates in transport and industry.
RED III sets mandates for renewable fuels of non-biological origin (RFNBOs) to account for 1% of transport energy and 42% of all hydrogen used in industry by 2030, with quotas increasing in following decades.
The groups described the mandates as “key policy instruments” that have made capital commitments, signed contracts, and project construction possible.
The transport targets have seen several refiners invest in green hydrogen production capacity, with the legislation allowing for fossil fuels refined with the gas to contribute toward the quotas.
“Their removal would waste six years of work and send shockwaves through the market, punishing first movers and creating a lack of confidence in EU climate and energy policies,” it reads.
However, it acknowledged there have been growing calls from the industry to improve the RED III mandates, primarily around the 42% industrial target, which has widely been viewed as unachievable by member states.
“Improving the framework, however, cannot mean dismantling the targets and mandates altogether,” it argued, calling for the Commission to engage with the industry and member states to ensure the industrial target is achievable.
As of September, 20 member states had either drafted or legislated RFNBO transport quotas, according to WoodMac, compared to just six doing so on the industrial targets. That’s despite the official deadline for transposition being in May 2025.
