MEPs approve reforms for sustainable gas market

Gas – Photo Naftogaz of Ukraine

(BRUSSELS) – The EU Parliament adopted plans Thursday to facilitate the uptake of renewable and low-carbon gases, including hydrogen, into the EU gas market and lead to a market which is more sustainable and resilient.

The new directive and regulation on the gas and hydrogen markets aim to decarbonise the EU’s energy sector, enhancing the production and integration of renewable gases and hydrogen.

The measures are designed to secure energy supplies disrupted by geopolitical tensions, particularly the Russian war against Ukraine, and address climate change. In negotiations with Council on the directive, MEPs focused on securing provisions around transparency, consumer rights, and support for people at risk of energy poverty.

The new regulation will beef up mechanisms for fair pricing and stable energy supply, and will allow member states to limit gas imports from Russia and Belarus. The legislation introduces a joint gas purchasing system to avoid competition among member states and a pilot project to bolster the EU’s hydrogen market for five years.

The regulation also focuses on increasing investments in hydrogen infrastructure, especially in coal regions, promoting a transition to sustainable energy sources like biomethane and low-carbon hydrogen.

“Europe’s steel and chemical industries, which are hard to decarbonise, will be placed at the centre of the development of a European hydrogen market,” said lead MEP for the directive Jens Geier: “This will enable fossil fuels to be phased out of industry, secure European competitiveness, and preserve jobs in a sustainable economy.”

Lead MEP on the regulation Jerzy Buzek said: “The new regulation will transform the current energy market into one based primarily on two sources – green electricity and green gases. This is a huge step towards meeting the EU’s ambitious climate goals and making the EU more competitive on global markets.”

Both texts now have to be formally adopted by EU Council before publication on the Official Journal.

Further information, European Parliament

Adopted text (11.04.2024)

EP research briefing: Recast EU regulation on gas and hydrogen networks

EP research briefing: EU directive on gas and hydrogen networks

Steps of the procedure (2021/0425(COD))

Steps of the procedure (2021/0424(COD))

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