The Hydrogen and Decarbonised Gas Market Package faces intricate negotiations. It aims to decarbonise gas markets and establish a hydrogen market, sparking debates in the European Parliament and the Council. Find out which aspects are contentious and how SAVOIRR helps monitor lobbying efforts and stakeholder positions.
The European Green Deal's Fit for 55 climate package brought forth a transformative initiative in 2021—the Hydrogen and Decarbonised Gas Market Package. This package aims to accelerate the transition to sustainable energy, reducing reliance on fossil fuels. Today, it faces complex negotiations influenced by geopolitical factors like the Ukraine War, Middle East tensions, and evolving China relations, along with the 2022 REPowerEU Strategy's new conditions.
Today, this package has two main goals: decarbonizing gas markets and establishing a hydrogen market. These objectives spark heated debates in the European Parliament and the Council.
Operator Networks: New or Extended?
One significant point of contention revolves around whether to establish a dedicated European Network of Network Operators for Hydrogen (ENNOH) or to reform the existing European Network of Transmission System Operators for Gas (ENTSOG) by including Hydrogen Network Operators (ENTSOG&H). The former approach has the backing of the Council, while the Parliament favours the latter. This debate is further fuelled by questions about whether fossil fuel operators should be responsible for designing a roadmap for non-fossil fuel infrastructure or if investments in hydrogen should be integrated into the existing gas grid.
Cross-Border Tariffs
The revision of the EU Gas Directive presents another challenging aspect of the package. The Council proposes extending the transition phase for hydrogen until the end of 2035 and granting itself the authority to declare natural gas price crises. In contrast, MEPs are eager to expedite the phase-out of fossil fuels and emphasise the importance of "hydrogen corridors" for facilitating a pan-European hydrogen market with free cross-border movement. The removal of cross-border tariffs is a contentious issue, with gas pipeline operators voicing concerns about complexities and financing for new hydrogen infrastructure.
Stakeholder perspectives
While hydrogen is often portrayed as a silver bullet for decarbonisation, stakeholders across the spectrum caution that an integrated European hydrogen market may not be a panacea for domestic or industrial decarbonisation. Stakeholders, including environmental NGOs and energy companies, have been actively engaged in shaping the discussions, with differing views and priorities.
Tracking influence with SAVOIRR
To gain insights into the dynamics of lobbying and influence within this complex landscape, the RegTech platform SAVOIRR proves to be an invaluable tool. With SAVOIRR you can monitor both allies and opponents involved in legislative files. In our use case on hydrogen for instance, you can see which stakeholder have been most active in influencing the revision of the Gas Regulation.
Gain deeper insights into how SAVOIRR can assist you in tracking intricate legislative procedures, understanding involved stakeholders and their positions. Explore our use cases for tangible examples or reach out to us for a demo call.
In conclusion, the journey of Europe's Hydrogen and Decarbonised Gas Market Package reflects the complexity and challenges of policy development in the pursuit of greener energy sources. It underscores the importance of addressing geopolitical factors, fostering collaboration between diverse stakeholders, and carefully weighing the implications of legislative decisions. As negotiations continue, it remains crucial to monitor lobbying efforts and stay informed about who is shaping the future of Europe's energy landscape.
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