Full Title: The Case for Recalibrating Europe’s Hydrogen Strategy
Author(s): Quailan Homann, Joaquin Rosas, Connor Kerr, and Oleksiy Tatarenko
Publisher(s): Rocky Mountain Institute
Publication Date: March 10, 2025
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Description (excerpt):
In the five years since the European Commission unveiled its 2020 European Hydrogen Strategy, the European Union’s (EU’s) hydrogen market has captured significant global attention from policymakers and industry stakeholders. By taking the lead in developing a renewable hydrogen industry through progressive policies, targets, and technological innovation, the EU has showcased both the immense potential and the substantial challenges of this transition. Executing this vision has proved difficult, with many early expectations — such as rapid progress, cost reductions, and broad offtake applications — now proven to be overly ambitious or unattainable in the short term.
Kickstarting decarbonization of hard-to-electrify sectors will require robust support for offtakers through financial incentives, clear sectoral mandates, realistic infrastructure planning, and a stable regulatory framework that strengthens industry confidence and reassures investors. By mobilizing investors and developers through a pragmatic, implementation-focused approach, the EU can accelerate the scaling of its renewable hydrogen industry and solidify its leadership in the global energy transition. This in turn will support the Commission’s interlinked objectives to drive industrial competitiveness and domestic job creation across the bloc in line with its recently released Clean Industrial Deal.
This report evaluates the current state of the EU hydrogen market and provides policymakers with a set of implementation-oriented policy levers and strategic choices to consider.