Enabling renewable hydrogen development in light of the clean energy transition 'How do the existing EU legal framework and State aid rules treat the investment dynamics for renewable hydrogen development?

Abstract

This thesis examines the potential of renewable hydrogen to contribute to the European Union's decarbonisation objectives, emphasising the need for a robust regulatory framework to fully leverage this energy carrier. Focusing on the EU's existing legal framework and State aid rules, the research investigates how these regulations impact investment dynamics in renewable hydrogen development. The study identifies three normative criteria, policy stability and certainty, regulatory coherence, and investment predictability, that are essential for fostering investment in green hydrogen. Analysis reveals that while EU policies such as the Hydrogen Strategy and the Green Deal provide a strategic direction, regulatory gaps and complexities undermine investor confidence. The complexity of compliance criteria in the new Delegated Acts and RED III and the absence of harmonised standards for certification introduce uncertainties that may deter investments. Furthermore, State aid rules, while mitigating investment risks, present challenges due to their temporary nature and the risk of uneven implementation across Member States. Despite the novelty of the renewable hydrogen legal landscape, the thesis concludes that addressing these challenges by enhancing regulatory coherence and predictability is important for advancing renewable hydrogen projects and supporting Europe's transition to a clean energy system. This study underscores the importance of a stable and predictable investment environment to attract and sustain investment dynamics in renewable hydrogen, thereby accelerating Europe's efforts towards achieving climate neutrality.