The March 2025 edition of Hydrogen Compass examined changes in European hydrogen regulation, investment and funding.
A central issue was the implementation of the Renewable Energy Directive III (RED III). Belgium, the Netherlands and Germany were developing different regulatory approaches, creating varying conditions for hydrogen producers, investors and users.
European policy developments
The review also highlighted hydrogen-related elements of the EU Clean Industrial Deal, including:
- a delegated act on low-carbon hydrogen;
- a European hydrogen mechanism;
- further activity under the European Hydrogen Bank; and
- new support for industrial decarbonisation.
Relevance for regional authorities
The developments showed that regional hydrogen planning had to account for a changing regulatory environment.
Differences between national approaches could affect:
- which hydrogen projects qualified for public support;
- investment decisions;
- certification and sustainability requirements;
- the economic viability of production and use; and
- cross-border cooperation.
Main lesson
Regulatory clarity and predictable support conditions were important for moving projects from planning to implementation.
For H2CE regions, monitoring EU and national policy helped ensure that regional strategies, infrastructure plans and support mechanisms reflected current market conditions rather than relying on assumptions that could quickly become outdated.
The analysis was based on the March 2025 edition of Hydrogen Compass