Members' Research Service By / March 15, 2022

Recast EU Regulation on Gas and Hydrogen Networks [EU Legislation in Progress]

On 15 December 2021, the European Commission adopted a hydrogen and decarbonised gas markets package, consisting of three major legislative proposals: a recast regulation on EU gas and hydrogen markets (subject of this briefing); a recast directive on EU gas and hydrogen markets; and an entirely new regulation to reduce methane emissions in the EU energy sector.

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Written by Alex Wilson (1st edition).

On 15 December 2021, the European Commission adopted a legislative proposal to recast the 2009 EU Gas Regulation, as part of the hydrogen and decarbonised gas markets package. This reflects the EU’s growing climate ambitions, outlined in the European Green Deal and its ‘Fit for 55’ package.

The Commission’s legislative proposal aims to support the decarbonisation of the energy sector by ramping up the production of renewable gases and hydrogen across the EU, and facilitating their integration in existing or new gas networks. It would create an EU legislative framework for hydrogen networks, comparable to those that already exist for natural gas and electricity. It would also oblige existing natural gas infrastructure to integrate a higher share of hydrogen and renewable gases, by means of high tariff discounts; provisions to facilitate blending of hydrogen with natural gas and renewable gases; and greater EU cooperation on gas quality and storage.

The Commission’s legislative proposal likewise includes a targeted revision of the 2017 Security of Gas Supply Regulation. This aims to foster greater regional cooperation on gas storage, facilitate the (voluntary) joint procurement of strategic stocks, and encourages Member States to take measures to address the growing risk of cyber-attacks on EU energy networks.

Versions

Proposal for a regulation of the European Parliament and of the Council on the internal markets for renewable and natural gases and for hydrogen (recast)
Committee responsible:Industry, Research and Energy (ITRE)COM(2021) 804
15.12.2021
Rapporteur:Jerzy Buzek (EPP, Poland)2021/0424(COD)
Shadow rapporteurs:Patrizia Toia (S&D, Italy)
Marie Toussaint (Greens/EFA, France)
Zdzisław Krasnodębski (ECR, Poland)
Ordinary legislative procedure (COD)
(Parliament and Council
on equal footing – formerly ‘co-decision’)
Next steps expected: Publication of draft report
EU Legislation in progress: Proposal

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