Auditors claim EU set overly ambitious 2030 renewable hydrogen targets

The European Union is unlikely to achieve its 2030 targets for the production and import of renewable hydrogen according to a new report released by the European Court of Auditors that “calls for a reality check.”

The auditors have determined that the European Commission set overly ambitious targets that were driven solely by political will and did not follow a robust analysis. They acknowledge that the legal framework is almost complete but note that agreeing on the rules that define renewable hydrogen took time, resulting in many investment decisions being deferred.

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“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,” commented Stef Blok, the ECA Member in charge of the audit.

The auditors urged the Commission to update its hydrogen strategy so that it reflects the ways to calibrate market incentives for renewable hydrogen production and use, and how EU funding should be prioritised. Particularly when it comes to the financing aspect, it is noted that the available opportunities to secure EU funding are divided between several programmes, which makes it difficult for companies to determine the type of funding they need.

The auditors also wish for the updated strategy to specify which industries the EU wants to retain and at what price.