Guidehouse to Support European Commission in Assessing Impacts of Proposed Hydrogen Market Regulation

Guidehouse's analysis will help the European Commission assess proposed policy options designed to stimulate and regulate the future European hydrogen market

Guidehouse is supporting the European Commission (EC) with a study on a regulatory framework for hydrogen. The analysis will be used by the EC as input to the creation of an impact assessment that will accompany the EC’s legislative proposal expected in Q4 2021.

Guidehouse is collaborating with Frontier Economics in the project, which will define the framework the EC will use to assess proposed policy options designed to stimulate and regulate the future European hydrogen market.

The EU has set a target to become climate neutral by 2050. Large volumes of renewable and low-carbon hydrogen will be required to decarbonize hard-to-abate sectors and to provide storable, dispatchable energy. By 2030, the EC would like to create at least 40 GW of electrolyzer capacity within the EU to produce green hydrogen, in addition to deploying blue hydrogen. Given the urgency to scale-up the use of hydrogen, it is crucial to facilitate the creation of a hydrogen market, covering supply, demand, and infrastructure, governed by consistent regulation that provides clarity to the market and enables investment.

“We are delighted to support the European Commission in this critical task,” said Daan Peters, director in Guidehouse’s Energy, Sustainability, and Infrastructure segment. “Introducing regulation for hydrogen requires a robust impact assessment. Regulating too much too early could stifle this nascent market while a lack of regulation could hinder the rollout out of an efficient, functioning market in the long-run.”

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