EU Regulatory Challenges Slow Progress of International Green Hydrogen Projects

The development of international green hydrogen projects continues to face an array of challenges in the European Union due to regulatory hurdles. Green hydrogen and derivative fuels such as ammonia, e-methanol and e-NG came into the spotlight in June 2023 when the EU rules defining these became binding law. This development was expounded upon in a previous client note on RFNBO Delegated Acts.

In an effort to mitigate the uncertainties surrounding the application of these complex laws, the European Commission (EC) published a Q&A document in late July 2023. Intended as a guidance tool, the document aims to streamline the application of rules related to green hydrogen and its derivatives.

Despite these sincere attempts at clarification, many companies and stakeholders are still grappling with the intricacies of the new regulation. This raises concerns about the speed and efficiency of implementation for international green hydrogen projects, which are seen as a crucial component in global efforts for a more sustainable future.

Not only do these regulations pose significant challenges for corporations and law firms, but they also shape the legal landscape for green hydrogen projects. These projects hold vast potential to contribute to clean energy targets, and as such, they are attracting increased attention from legal professionals tasked with navigating the evolving regulatory framework.

Understanding these EU regulations and staying one step ahead will be a must for any legal practitioner working on the development and implementation of international green hydrogen projects. Therefore, for further reading on the issue, we recommend this article published by
King & Spalding.