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Short overview of the green hydrogen regulatory situation19 October 2022

Partner Dr F. Maximilian Boemke has contributed to KGAL’s white paper “Green H2 Investments – from Buzz to Boom”, which provides a macroeconomic, technological, regulatory and market overview of hydrogen opportunities.

"The German GHG quota system and the EU RED II provide good examples of how the demand for green hydrogen can be stimulated by regulatory frameworks."

Green hydrogen is certain to play a key role in an era of renewable energy, but with climate change becoming ever more apparent, we cannot wait for market forces alone to help green hydrogen achieve a breakthrough. As explained in Chapter 3 of the white paper, regulatory incentives are needed to give green hydrogen the key role it deserves.

More than 20 countries worldwide have already drafted a hydrogen strategy, or are actively working on one. These strategies provide a good overview of what plans and goals individual countries are pursuing with regard to (green) hydrogen. They also contain statements on the timeframe for the development of a hydrogen economy as well as discussions of regulatory instruments such as Carbon Contracts for Difference (CCfDs) or Important Projects of Common European Interest (IPCEI) funding.

These strategies are important political declarations of intent, but they are not legally binding. Claims (e.g. for a certain type of subsidy or the implementation of a subsidy system by a certain date) cannot be derived from them. Legislative implementation acts are therefore required in order to develop a reliable regulatory framework for hydrogen or, more generally, a hydrogen market environment. In Chapter 4, Maximilian outlines regulatory incentives and the currently existing regulatory framework for green hydrogen.

To read the white paper in English, please click here. For the German version, please click here.