The Council of the EU has adopted a negotiating position on the Renewable Energy Directive that targets a 2.6pc share of renewable fuels of non-biological origin (RFNBO) in transport by 2030.

RFNBOs consist mostly of renewable hydrogen and hydrogen-based synthetic fuels.

The Council also agreed that 35pc of the hydrogen used in industry should come from RFNBOs by 2030 and 50pc by 2035.

Both targets are “indicative” rather than “binding”—meaning there is no legal recourse if they are not met. Both had been binding under the initial European Commission proposal and have been comprehensively diluted, according to Jorgo Chatzimarkakis, CEO of industry group Hydrogen Europe.

“Shifting from binding to indicative targets in these sectors harms the business case and hampers investor certainty,” he says. “Sadly, the Council’s position falls short of meeting the ambition of the RepowerEU communication.”

“Shifting from binding to indicative targets in these sectors harms the business case and hampers investor certainty” Chatzimarkakis, Hydrogen Europe

The European Commission’s RepowerEU policy response aims to reduce the EU’s dependence on Russian oil and gas. It proposed much stronger targets of 5.2pc of RFNBOs in transport and a 75pc target for hydrogen use in industry.

The Council has reached its position ahead of the European Parliament. Parliament’s industry committee will vote on the file next month, with a plenary vote tabled for September, after which representatives of the two bodies will meet to discuss the final shape of the law.

Hydrogen Europe is calling on the European Parliament and European Commission to stand by the higher subtargets for RFNBOs in transport and industry and to make them binding.

Markus Pieper, the MEP responsible for guiding the legislation through parliament yesterday tweeted of the Council’s position: “Transport and hydrogen targets too low. We can do better.”

Parliament’s industry committee has published a draft document that contains amendments for a 5pc share for RFNBOs by 2030 along with interim targets of 0.4pc in 2022, 1pc in 2025 and 2.6pc in 2028.

It also contains an amendment that 70pc of the hydrogen used in industry should come from renewable fuels by 2035.

The European Commission is consulting separately on two delegated acts that also form part of the RepowerEU proposal and would define exactly what is meant by renewable hydrogen.

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Author: Tom Young