In a joint letter to the EU Commission, 170 companies that invest along the entire value chain in Europe's energy sector have spoken out. Their demand: The targets and quotas for Renewable Fuels of Non-Biological Origin (RFNBO) in the Renewable Energy Directive (RED III) for the transport and industry sectors should remain in place beyond 2030. The letter is addressed to Commission President Ursula von der Leyen, Executive Vice-President Teresa Ribera, and Commissioner Dan Jørgensen.
The initiative was organized by Hydrogen Europe, the Hydrogen Council, and the Renewable Hydrogen Coalition. The companies argue that removing the RFNBO targets would not simplify matters. Rather, six years of work would be discarded, the market shaken, and pioneers punished.
15 billion euros already invested
According to the associations, Europe holds the largest volume of investments in hydrogen end-use applications worldwide, with over 15 billion euros already committed. Investments in Europe grew by 35 percent last year. More than 4 gigawatts of electrolysis capacity are currently under construction. This growth is mainly driven by the implementation of the RED-III transport targets.
Meeting the existing RED-III targets by 2030 represents a further investment opportunity of 50 to 60 billion euros, according to industry calculations. Additionally, CO2 savings of around 30 million tonnes per year are possible.
Industry calls for improvements – but not abolition
The industry acknowledges that there is a need for improvements to RED III. There are real opportunities to remove obstacles that stand in the way of achieving the industry's goals. The companies ask the Commission to continue engaging with the hydrogen industry and member states to make the targets achievable and enable market ramp-up. However, improving the framework should not mean abolishing the targets and quotas altogether.
The associations refer to the Draghi report, which identified slow policy-making, delayed implementation, and a lack of planning certainty for investors as obstacles for Europe. A RED framework after 2030 that jeopardizes the demand signal built over half a decade would signal to every investor that European policy cannot anchor long-term investment decisions.
Strong words from association leaders
Jorgo Chatzimarkakis, CEO of Hydrogen Europe, said: "This is a test of Europe's credibility. Weakening the hydrogen targets now would mean changing the rules in the middle of the game. We would not only break the trust of more than 100 European companies that have invested based on these targets but also the trust of countless international companies that have worked so hard to become RFNBO-compliant." According to Chatzimarkakis, a change of course would slow down innovations in the clean-tech sector and the transformation of European refineries, just as the first major projects are getting underway.
François Paquet, Managing Director of the Renewable Hydrogen Coalition, stated: "Europe needs investments. Investments need certainty. Certainty needs binding RFNBO targets." Europe's problem is not that the targets exist, but that too little is being done to implement them. The answer lies in better implementation, stronger support mechanisms, and effective enforcement – not in lower ambitions.
Ivana Jemelkova, CEO of the Hydrogen Council, added: "International investors need to know that they can trust Europe when it sets a long-term political course." Maintaining binding RFNBO targets and quotas beyond 2030 would send a strong signal that Europe can provide the security investors need.
Background
Hydrogen Europe represents the European hydrogen and fuel cell value chain with over 600 members, including more than 40 EU regions and over 30 national associations. The Hydrogen Council is a CEO-led alliance with around 140 companies from nearly 30 countries. The Renewable Hydrogen Coalition advocates for the role of renewable hydrogen in the EU's long-term decarbonization goals.
