New European rules for the gas and hydrogen market

The Council of the European Union adopted on Tuesday new common rules for the internal market for natural and renewable gases as well as hydrogen, with a view to achieving the EU’s decarbonization objectives.

This legislative framework (a regulation and a directive) reforms current EU gas legislation and is intended to contribute to the transition to renewable and low-carbon gases, in particular hydrogen, in the energy system of the Union, says the Council, which represents the Member States of the EU.

This “gas package” defines “solid” rules for the organization of the natural gas market and the development of the future hydrogen market, including for infrastructure dedicated to this fuel of the future. It contains in particular specific rules for the transport, supply and storage of natural gas and hydrogen, specifies the Council in a press release.

“The new rules call for integrated and transparent network planning across the EU, according to the principle of ‘energy efficiency first’ and with a forward-looking approach,” it is emphasized, adding that gas and hydrogen network operators must prepare a ten-year European network development plan.

This text, which also paves the way for a permanent platform for aggregating European demand for gas and hydrogen, stipulates that long-term contracts for fossil gas will no longer be concluded from 2049, in order to “guarantee the phase-out of fossil fuels”.

In addition, Member States will put in place tariff reductions and incentives to facilitate integration into the renewable gas market, in particular for the emerging hydrogen market, and thus ensure a “just transition”. .

In addition, a voluntary mechanism will be put in place to support the hydrogen market for five years.

The regulation will enter into force six months after its publication in the Official Journal of the EU. Concerning the directive, Member States will have two years to adapt their national legislation to its provisions.

The hydrogen and carbon-free gas markets package is part of the “Fit for Target 55” package of legislation, which aims to help the EU meet its target of reducing CO2 emissions by at least 55% by 2030.

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