EU hydrogen rules under review: scaling the market without diluting green

Europe’s decision to revisit its strict green hydrogen rules early could reshape early project economics. But others argue it risks undermining stability and the very definition of green.

The European Commission confirmed it will table a proposal in Q2 2026 for a of the renewable fuels of non-biological origin (RFNBO) rules, citing a “slower than expected” market ramp-up.

The move is widely expected to relax strict electricity sourcing criteria for projects, following sustained pressure from developers and industry groups, who argue the current rules are too complex and costly for a nascent market.

Details remain limited, but Brussels has signalled it could explore recognising nuclear power as a source of low-carbon electricity for hydrogen production.