The European Union is facing significant challenges in achieving its 2030 targets for the production and import of renewable hydrogen, according to a critical report released by the European Court of Auditors (ECA).
The auditors contend that the targets set by the European Commission were overly ambitious and driven more by political aspirations than by a rigorous analysis of feasibility.
They acknowledge progress in finalizing the legal framework but highlight delays in defining rules for renewable hydrogen, which have deterred many investment decisions.
Stef Blok, the ECA Member overseeing the audit, emphasized the need for the EU to chart a strategic path towards decarbonization without compromising the competitiveness of key EU industries or fostering new strategic dependencies.
He commented, “The EU should decide on the strategic way forward towards decarbonisation without impairing the competitive situation of key EU industries or creating new strategic dependencies.”
The auditors recommended that the European Commission update its hydrogen strategy to include calibrated market incentives for renewable hydrogen production and use, as well as clearer prioritization of EU funding.
They noted complexities in accessing EU funding due to its dispersion across various programmes, which poses challenges for companies seeking financial support.
Furthermore, the auditors called for clarity in the updated strategy regarding which industries the EU aims to support and under what conditions.
