The EU’s RED III Directive requires Member States to meet an industrial hydrogen quota. By 2030, 42 per cent of industrial hydrogen demand is to be met by RFNBO-compliant hydrogen. By 2035, the quota will rise to 60 per cent. The draft proposal from the European Commission that has come to light, however, envisaged a consumption target of 8 million tonnes of hydrogen per year. This would mean the target level would be lower than the targets set out under REPowerEU of 10 million tonnes each of domestically produced and imported renewable hydrogen per year by 2030. 

The signatories emphasise that scrapping the targets would “penalise early adopters and undermine confidence in the EU’s climate and energy policy”. The letter is specifically addressed to European Commission President Ursula von der Leyen, Executive Vice-President Teresa Ribera and Commissioner for Energy and Housing Dan Jørgensen. 

Hydrogen market offers further investment potential 

The companies point to the progress already made: to date, more than 15 billion euros in investment in hydrogen end-uses has been committed in Europe. Investment grew by 35 per cent last year. Furthermore, more than 4 GW of electrolysis capacity is currently under construction, driven mainly by the RED III transport targets. 

Achieving the existing RED III targets by 2030 would represent further investment opportunities of between 50 and 60 billion euros, as well as potential CO₂ savings of around 30 million tonnes per year. 

The focus must be on implementation 

The signatories acknowledge that the industry has called for improvements to the existing RED III framework. They therefore call on the Commission to continue working with the hydrogen industry and the Member States. This cooperation is intended to ensure that the sector’s targets are achievable. However, improving the framework must not mean completely abolishing targets and requirements. 

Instead, investors in Europe need certainty. The Draghi Report on ‘The Future of European Competitiveness’, published in September 2024, highlighted what is holding Europe back: slow policy-making, delayed implementation and a lack of predictability for investors. A RED framework for the post-2030 period that jeopardises the demand signal in Europe would signal to investors that European policy cannot safeguard long-term investment decisions. 

François Paquet, Executive Director of the Renewable Hydrogen Coalition, emphasised that Europe’s problem is not the existence of the targets, but their inadequate implementation. The answer must be better implementation and stronger support mechanisms; not weaker ambitions. 

(Source: Hydrogen Council/ 2026)