EU Green Hydrogen Goals Deemed Unrealistic by European Court of Auditors

The European Commission has set non-binding goals to produce up to 10 million tons of renewable hydrogen domestically

The European Union's ambitious targets to produce and import green hydrogen fuel by 2030 are unlikely to be met, despite significant financial investments, according to a report released by the European Court of Auditors (ECA) on Wednesday. The European Commission has set non-binding goals to produce up to 10 million tons of renewable hydrogen domestically and import an additional 10 million tons, aiming to reduce the bloc's reliance on Russian energy imports. However, the ECA's report criticizes these targets as being based more on political aspirations than rigorous analysis. It highlights the substantial gap between current progress and the set objectives, revealing that the EU is far from achieving its hydrogen production and importation goals. Another key target, to install at least 40 gigawatts of renewable hydrogen electrolysers by 2030, originated from suggestions by a hydrogen lobby group rather than a strategic plan.

Despite the allocation of 18.8 billion euros ($20.5 billion) for green hydrogen initiatives, the report notes that projects expected to contribute less than 5GW of production capacity by 2030 have reached advanced stages. Meanwhile, additional projects totaling around 50GW remain in preliminary assessment phases.

Green hydrogen is critical to the EU's climate commitments, as it is produced using renewable energy to split water, generating no CO2 emissions. The ECA recommends that the European Commission adopt a more targeted approach to funding allocation and revise its policies to better support hydrogen project development.

A spokesperson for the European Commission acknowledged the ECA's findings, stating that the hydrogen market is evolving gradually and that the Commission is taking the report into consideration.