On Tuesday 28 November, the members of the European Parliament’s Committee on Industry, Research and Energy (ITRE) adopted by a very large majority - with 45 votes in favour, 4 against and 6 abstentions - the draft own-initiative report on the European Hydrogen Bank (see EUROPE 13143/4) by Robert Hajšel (S&D, Slovakian). The single compromise amendment covering the entire text was adopted. MEPs largely support the Commission’s proposal (see EUROPE 13143/4), published last March, while recommending significant improvements.
Strengthening the financing of the European Hydrogen Bank is a central point of the report. “If the EU wants to become a competitive global player, we need solid funding and, in this context, the initial budget of €3 billion for the EHB is not enough”, said Mr Hajšel in a press release.
Considering that the total investment required to achieve the objective of local production of 10 million tonnes of renewable hydrogen is estimated at between €335 and €471 billion, MEPs are calling for €500 billion of additional investment.
It also reflects the European Union’s ambition to position itself competitively against the industrial policies of the United States and China. MEPs stressed the importance of adequate funding, in line with the US Inflation Reduction Act (IRA), to effectively support Europe’s energy transition.
The project highlights the importance of focusing EHB efforts on the sectors that are most difficult to decarbonise, including heavy transport, steel production and fertiliser manufacture. These sectors, with their substantial carbon footprints and electrification challenges, require particular attention if the EU’s climate objectives are to be met.
One major innovation proposed is the introduction of a one-stop shop. The aim is to streamline support for all renewable hydrogen activities in the EU, simplifying processes for stakeholders and speeding up projects.
The adoption of this draft report also reflects a growing awareness of the need for a balanced and fair approach to the distribution of the European Hydrogen Bank’s funds. To achieve this, MEPs suggested the introduction of regional auctions, thus guaranteeing a fair allocation of resources between all Member States. This method aims to promote competitiveness while preventing regional disparities in development from worsening.
The text also highlights the need to incorporate rigorous environmental and social sustainability criteria into the award process. This requirement underlines the EU’s commitment to sustainable and responsible practices. Finally, MEPs insisted on the creation of a functional and sustainable hydrogen market, which should not depend indefinitely on public subsidies.
The text will be put to the plenary vote in December.
The draft report: https://aeur.eu/f/9tq
The compromise amendment: https://aeur.eu/f/9to (Original version in French by Nithya Paquiry)