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26 min ago 3 min read
The European Commission will refer Greece, Malta and Portugal to the Court of Justice of the European Union for failing to transpose Renewable Energy Directive III (RED III), including binding green hydrogen mandates for transport and industry, into national law.
The Commission said the countries had failed to notify any transposition measures or provide explanatory documentation. It is seeking financial sanctions for non-compliance.
RED III requires renewable fuels of non-biological origin (RFNBO) hydrogen to account for 42% of industrial hydrogen demand and 1% of transport energy by 2030.
Member states were required to transpose the rules by 21 May 2025, but most failed to meet the deadline.
After issuing a formal notice in July 2025, the Commission escalated proceedings with reasoned opinions to Greece and Portugal. Malta was separately flagged for failing to provide sufficient implementation documentation.
Under EU law, failure to notify or clearly document transposition can result in fines.
RED III spans multiple sectors, but its hydrogen mandates are seen as a key demand driver.
While most countries missed the deadline, many are now transposing the rules – often with significant deviations from EU requirements.
Italy is a notable exception, adopting the rules largely as written in February.
However, other countries have watered down the 42% industry hydrogen targets, which many in industry view as unachievable given mounting cost pressures on European manufacturers.
Dutch officials have already scaled back ambition. Speaking in Brussels last October, Gijs Postma said the Netherlands adopted just a 4% industrial mandate. “That was the result of an analysis of what these companies could bear in terms of extra cost,” he said.
Germany, meanwhile, has shifted focus to transport, with RFNBOs set to meet 10% of transport energy by 2040.
Speaking at the same event, Axel Bree, Deputy Director-General Hydrogen Ramp-up and Energy Research at German Federal Ministry of Economic Affairs and Energy, said the industry mandate was “not possible”.
Green hydrogen remains significantly more expensive than unabated fossil-based hydrogen in Europe. According to the European Hydrogen Observatory, RFNBO hydrogen currently sits at around €8/kg ($9.35), compared to approximately €3.5/kg ($4.09) for grey.
However, with the EU falling far short of its own green hydrogen targets, various bodies have been calling for RED III mandates to be quickly implemented.
The EU Agency for the Cooperation of Energy Regulators said in its 2025 report, “Timely implementation with coherent demand incentives is crucial to provide the needed clarity and regulatory certainty to unlock investments and accelerate market development for RFNBO hydrogen.”
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