Denmark’s position paper on supporting
the development of a well-functioning
European market for green hydrogen
Denmark’s main priorities to support the development of a well-functioning
European market for green hydrogen and derivatives
A well-functioning European market for green hydrogen and derivatives guided by the
following overarching principles:
•
The development of a European market for green hydrogen and derivatives should prioritise
cost-effectiveness and targeted use cases.
•
In the initial stages of market development, the EU should focus on implementing measures
and potentially introducing new well-grounded initiatives firmly based on strong principles
and evidence to complement ongoing efforts.
Supported by four main pillars:
•
Robust and reliable certification schemes enabling consumers to differentiate clearly
between gases and upholding the integrity of the RFNBO targets set out in the Renewable
Energy Directive, ReFuelEU Aviation and FuelEU Maritime.
•
Close alignment between the planning of electricity grids and hydrogen infrastructure to
ensure the most cost-efficient decarbonisation solutions.
•
Ambitious and transparent RFNBO targets to foster and incentivise the uptake of green
hydrogen and derivatives in hard-to-abate sectors.
•
Predictable and streamlined funding opportunities to support the realisation of announced
projects as well as the political ambitions of the EU.
The next European mandate is well-positioned to advance the development of a European market for green
hydrogen and derivatives. Building on the ambitious Fit-for-55 package and the legislative measures introduced
to establish an adequate policy framework, the mandate should zero in on addressing remaining needs to support
and facilitate timely market development. With a suitable policy framework emphasising targeted use cases and
strategic initiatives, green hydrogen and derivatives hold the potential to bolster a resilient, efficient and adaptable
European energy system. However, achieving this requires new initiatives to complement ongoing efforts and
address issues such as transparent and reliable certification schemes for hydrogen, improved infrastructure
coordination and planning, as well as enhancing production and boosting demand.
Implementing and bolstering the regulatory framework in a feasible and cost-
effective way
The Hydrogen and Decarbonised Gas Market Package will enable the uptake of renewable hydrogen in the EU
by establishing a market design, including rules on hydrogen infrastructure, access to hydrogen markets and
market integrity. Facilitating the uptake of green hydrogen is, however, highly dependent on reliable certification
schemes, enabling consumers to differentiate between gases, ensuring that hydrogen and derived fuels
contribute with significant, robust and traceable emission reductions compared to the fossil reference. The
overarching approach should be to avoid low-carbon hydrogen to be unduly counted towards the targets in the
Renewable Energy Directive, FuelEU Maritime and ReFuelEU Aviation. To this end, the forthcoming delegated
act under the Hydrogen and Decarbonised Gas Markets Package defining low-carbon hydrogen should be based
on a credible fossil fuel comparator and a robust traceability and transparency mechanism. This requires, among
other things, a full life cycle emissions assessment to measure the footprint of low-carbon hydrogen.