As the European Union seeks to scale up renewable hydrogen production, discussions are emerging around the potential relaxation of existing regulatory requirements. But what would these changes mean for the wider European energy system?
A new study conducted by CLIMACT, in collaboration with Systemik (UCLouvain) and the University of Liège, and commissioned by Environmental Defense Fund Europe, explores the potential impacts of relaxing the EU’s regulatory framework for renewable fuels of non-biological origin (RFNBOs).
Assessing the impacts of regulatory changes
Using a European energy system model developed for the study, the research examines eight regulatory scenarios and their implications for renewable electricity investments, CO₂ emissions, electricity prices, and renewable hydrogen production and costs.
The findings suggest that relaxing certain regulatory requirements could bring limited short-term benefits for renewable hydrogen production, but at a cost to the wider energy transition.
In particular, the study finds that postponing additionality and hourly matching requirements could reduce investment in renewable electricity generation, increase CO₂ emissions and raise electricity prices.
The analysis also suggests that existing regulatory requirements are not the main obstacle to scaling up renewable hydrogen production in Europe.
Supporting an effective hydrogen transition
The study highlights the importance of maintaining regulatory safeguards while addressing the underlying economic barriers to renewable hydrogen deployment.
Its recommendations point towards preserving the current regulatory framework, strengthening carbon pricing signals and accelerating renewable electricity deployment to support a competitive and sustainable hydrogen sector.
Read the full report to explore the findings and their implications for European energy and climate policy.