Eurogas Recommendations on Renewable and Low-Carbon Gases
Read the full recommendations here.
Renewable and low-carbon gases, such as biomethane and hydrogen, and their derivatives have a critical role to play in decarbonising the molecules mix while strengthening the EU's competitiveness and energy security. The EU must urgently ramp up their deployment if it is going to successfully transition to a fully climate-neutral energy system by 2050.
In particular, these fuels can ensure grid flexibility, as intermittent renewable electricity sources are integrated into the system. In addition, hydrogen and its derivatives can provide a reliable solution for long-term energy storage, especially as natural gas use declines.
But the market for renewable and low-carbon gases markets in Europe are currently facing significant barriers which could hinder the achievement of the EU's 2030 targets. Without timely action from EU policymakers to support their development, we risk missing the longer-term benefits that a more resilient, flexible and decarbonised system would unlock.
To address these challenges, Eurogas outlines the following sector-specific recommendations:
On biomethane and biogas:
These are formally classified in the Renewable Energy Directive as renewable energy sources, and the EU has introduced a non-binding target of 35 bcm for biomethane production in both REPowerEU and the Net Zero Industry Act (NZIA), the latter of which also recognises it in the list of net-zero technologies.
However, the EU has yet to propose concrete and viable actions to scale up the biogas and biomethane market. Therefore, it is crucial to:
- Ensure equal treatment of biomethane and renewable electricity
- Accelerate the development of biomethane production in the EU
- Stimulate biomethane consumption
- Enable and enhance cross-border trade of biomethane
- Revise Annexes V and VI with a pragmatic approach, considering industry needs and capabilities
On the Union Database (UDB):
Eurogas supports the UDB as a key instrument for enhancing the traceability of gaseous and liquid fuels within the EU, preventing double counting and mitigating the risk of fraud, but a number of issues have to be tackled to ensure its effectiveness, and improve clarify on its scope, functionality and implementation.
We recommend to:
- Ensure clarity on UDB implementation and enforcement deadlines
- Include third-country imports/exports
On the EU hydrogen market:
As the EU accelerates its transition to a climate-neutral economy, hydrogen and its derivatives are a key energy vector to support decarbonisation across industries.
However, ensuring a secure, affordable and competitive hydrogen supply remains a significant challenge. To tackle the barriers to the uptake of an EU market for hydrogen, we must:
- Drive EU demand for hydrogen
- Overcome obstacles to fully technology-neutral policies
- Advance integrated network development
- Strengthen investment certainty for first-mover projects
- Develop a competitive EU strategy for renewable and low-carbon hydrogen
- Overcome obstacles hindering electrolytic hydrogen production, challenging the EU's 2030 targets
- Recognise the key role of low-carbon hydrogen in the energy transition
Progress in these areas will help us develop and deploy renewable and low carbon fuels at a scale which can greatly contribute to our emission reductions.
Read the full recommendations below.
