In a major push for greener energy, the European Commission has unveiled a key set of rules aimed at speeding up the production of low-carbon hydrogen—fuel that could play a vital role in Europe’s net-zero ambitions.
The new methodology clarifies how hydrogen and other fuels can qualify as “low carbon” under EU rules, unlocking much-needed investment and giving energy companies a clear framework for scaling up production. To meet the standard, fuels must cut greenhouse gas emissions by at least 70% compared to traditional fossil fuels.
Crucially, the updated rules embrace carbon capture and storage (CCS) as a central part of hydrogen’s future. That means hydrogen produced using natural gas can still qualify—if carbon emissions from the process are captured and stored. Hydrogen made using low-carbon electricity, such as nuclear or hydropower, also gets the green light.
Low-carbon hydrogen threshold clarity
Dan Jørgensen, Commissioner for Energy and Housing commented on the announcement by saying: “Hydrogen will play a key role in the decarbonisation of our economy. With a pragmatic definition of low-carbon hydrogen that respects the energy mix of all EU countries, we are providing the necessary certainty to investors. In this way, we support the growth of a sector which is key for both our competitiveness and our climate objectives.”
While the EU has already regulated renewable hydrogen, this marks the first full definition of how “low-carbon” versions fit into the bloc’s climate strategy. It’s a move that acknowledges the diverse energy sources across member states and keeps doors open to technologies that can accelerate decarbonization in tough-to-electrify sectors like aviation, shipping, and heavy industry.
The plan will now be reviewed by the European Parliament and Council, with a decision expected in the coming months. Looking ahead, the Commission plans to examine the role of nuclear energy in hydrogen production, launching a public consultation in 2026.
This new clarity—especially around carbon capture—strengthens Europe’s bid to lead the global hydrogen race, while reinforcing its broader goal of climate neutrality by 2050.
EU offering €600 million to boost hydrogen and carbon capture projects
In April the EU invited bids for €600 million ($703 million) in funding to accelerate hydrogen and carbon capture infrastructure as part of its Connecting Europe Facility for Energy (CEF Energy).
Targeting cross-border energy projects, the initiative supports efforts to strengthen energy security, cut costs, and drive climate goals. Eligible Projects of Common or Mutual Interest benefit from fast-tracked permits and regulatory support thanks to the EU’s Trans-European Network for Energy (TEN-E). Applications close on September 16, 2025, with winners announced in early 2026.
This follows a February round that awarded €1.2 billion ($1.4 billion) to 41 projects, including CO2 storage and grid upgrades, reinforcing the EU’s push toward carbon neutrality.
Read more: EU Accepting Bids For $660 Million In Hydrogen And Carbon Capture Funding
