Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Hydrogen Council’s top-line messaging on climate policy is positive, however there appears to be limited transparent engagement with specific climate related policy in Europe and the US. In regard to the energy transition, the association appears to advocate for an expanded role for hydrogen, specifically in hard to abate sectors, but seems to have continued support for both low-carbon and renewable forms of hydrogen in the energy mix.
Top-line Messaging on Climate Policy: Hydrogen Council’s top-line messaging on climate policy is positive. The association recognized the need for urgent action to combat climate change in a press release in April 2023. The organization also supported the Paris Agreement and the target to limit warming to 2°C in on its corporate website accessed in December 2022. From the available evidence it is less clear if the organization supports the need for climate policy away from hydrogen production.
Engagement with Climate-Related Regulations: Hydrogen Council appears to have limited engagement with climate related regulations in 2023 and it is unclear if its engagement extends beyond hydrogen development. In its ‘Hydrogen Insights’ report published in May 2023, Hydrogen Council appeared to support the hydrogen tax credit in the IRA. In an email correspondence with the cabinet of Vice-President Timmermans it was unclear if the organization supported the hydrogen objectives of the RePowerEU plan.
Previously, in its November 2021 Hydrogen for Net-Zero report, the association also appeared to support both the introduction of CBAM and a phase-out of free allowances under ETS, to help drive the transition away from gray hydrogen.
Positioning on Energy Transition: Hydrogen Council appears to support an increased role for hydrogen in the energy mix, but it is unclear to what extent it supports the decarbonization of its production. In its ‘Hydrogen in Decarbonized Energy Systems’ report published in October 2023, Hydrogen Council appears to support a role for hydrogen to decarbonize hard-to-abate sectors but is unsupportive of additionality. This support for hydrogen included a role for both renewable hydrogen and hydrogen produced from fossil gas, with some reference to the need for CCS. In its critical materials report from December 2022, Hydrogen Council appears to support the development of hydrogen to ‘complement’ electricity, without clarifying its production method.
Previously, in its Policy Toolbox report from November 2021, Hydrogen Council did support the EU Hydrogen Strategy and its target of 50% renewable hydrogen consumption by 2030 and also appeared to support phasing out fossil fuel subsidies in relation to making hydrogen more competitive.