On the proposal for a directive of the European Parliament and of the Council on common rules for the internal markets in renewable and natural gases and in hydrogen (recast)
ITRE-PR-732908
Committee on Industry, Research and Energy · Rapporteur: Jens Geier
Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.
This is the rapporteur's draft report on the Commission proposal for a directive on common rules for the internal markets in renewable and natural gases and in hydrogen (recast). It proposes amendments to the Commission's text.¶¶ The amendments prioritise hydrogen use for industrial customers in hard-to-decarbonise sectors, promote energy system integration, and require local heating and cooling plans.¶¶¶ They set rules for low-carbon fuels, including a fossil fuel comparator of 94 gCO2eq/MJ and a 70% greenhouse gas saving threshold, and require a Union database for low-carbon fuels.¶¶ They strengthen consumer protection, introduce definitions of energy poverty and vulnerable customers, and require smart meters in the gas system only after a positive cost-benefit assessment.¶¶¶ They adjust unbundling rules for hydrogen networks, allowing all three unbundling models without an end date, and extend distribution system operator unbundling to hydrogen distribution network operators.¶¶
Committee position. The rapporteur proposes amendments to the Commission proposal, prioritising hydrogen use for industrial customers, promoting energy system integration, strengthening consumer protection, and adjusting unbundling rules for hydrogen networks.¶¶¶
Key points
- Requests for grid connection of renewable gas production should be assessed within reasonable time limits and permitting should not be hampered by lack of administrative capacity; renewable gas connection requests may be prioritised over natural and low-carbon gas.¶
- In the early stages of market development, hydrogen use should be prioritised for hard-to-decarbonise sectors where more energy and cost-efficient options are not available, including heavy-duty transport.¶¶
- Imports of renewable and low-carbon hydrogen are needed; the certification and life cycle assessment methodology for low-carbon fuels should also apply to imports.¶
- The Commission shall adopt delegated acts specifying the methodology for assessing greenhouse gas emissions savings from low-carbon fuels, requiring at least 70% savings relative to a fossil fuel comparator of 94 gCO2eq/MJ, based on life-cycle emissions.¶
- The Commission may adapt the threshold for low-carbon fuels produced in installations starting operations from 1 January 2031; the methodology shall be in line with Article 27 of Directive (EU) 2018/2001 and avoid double counting.¶
- Member States shall require economic operators to enter information on transactions and sustainability characteristics of low-carbon fuels into the Union database; the interconnected natural gas and hydrogen system shall be considered a single mass balance system.¶
- Member States shall ensure final customers are informed of mandatory fuel switches from gas heating to other forms of heating, receive a roadmap and information on support, and that such switches have no adverse effect on vulnerable customers or those affected by energy poverty.¶
- Member States shall proceed with deployment of smart metering systems in the gas system only after a positive cost-benefit assessment; benefits to network operations shall be subtracted when calculating customers' contribution.¶¶
- Member States shall define vulnerable customers as those living below 60% of national median equivalised disposable income and shall take into account criteria for identifying people affected by or at risk of energy poverty.¶
- The Commission shall adopt and publish a report every two years mapping energy poverty and risk of energy poverty in each Member State and per NUTS3 level, including assessments of energy prices, underlying conditions and social instruments.¶
- Member States shall ensure regulated third-party access to hydrogen networks; if capacity is insufficient, priority should be given to potential users with the highest greenhouse gas abatement potential.¶
- Member States may choose between negotiated or regulated third-party access to hydrogen storage, based on an assessment of competition; the unbundling rules for distribution system operators shall also apply to hydrogen distribution network operators.¶¶
Who is affected
- Industrial customers in hard-to-decarbonise sectors, who would be prioritised for hydrogen use and network access.¶¶
- Final customers, especially vulnerable customers and those affected by energy poverty, who would receive information and protection during mandatory fuel switches.¶¶
- Hydrogen network operators, who would face new unbundling rules, quality management obligations and reporting requirements.¶¶¶
- Member States, which would need to ensure consumer protection, energy poverty monitoring, and local heating and cooling planning.¶¶¶
- Regional and local authorities, which would prepare local heating and cooling plans.
Figures and deadlines
- At least 70% greenhouse gas emission savings relative to a fossil fuel comparator with a threshold of 94 gCO2eq/MJ for low-carbon fuels.¶
- Threshold adaptation for low-carbon fuels produced in installations starting operations from 1 January 2031.¶
- Vulnerable customers defined as those living below 60% of the national median equivalised disposable income.¶
- Commission report mapping energy poverty by two years after entry into force and every two years thereafter.¶
- Hydrogen network operators shall publish a joint report on the development of the hydrogen system at least every two years.¶
- From 1 January 2031, a network development plan pursuant to Article 51 shall be mandatory for hydrogen network operators.¶
Legal basis: Article 294(2) of the Treaty on the Functioning of the European Union.¶