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Tax incentives to promote clean technologies

On 10 October, the Council of the European Union approved conclusions on the use of tax incentives to promote clean technologies and industry, supporting the implementation of the Clean Industrial Deal (CID).

➡️ The conclusions is available via this link.

The conclusions respond to the European Commission’s Recommendation of 2 July 2025, which outlined how Member States can use fiscal tools such as targeted tax credits and accelerated depreciation to boost investment in clean technologies and industrial decarbonisation.

✅ Key elements of the Council conclusions:

📌 Welcome the the Commission recommendation on tax incentives to support the Clean Industrial Deal and in light of the Clean Industrial Deal State Aid Framework.

📌 Emphasise that tax incentives should remain simple, effective, and adapted to diverse national tax systems.

📌 Highlight the importance of flexibility and Member State discretion in designing and applying incentives, given budgetary realities.

📌 Encourage evaluation and exchange of best practices across Member States to ensure effective implementation.

☑️ Why this matters:

Tax incentives can become a cornerstone of Europe’s industrial transformation, helping to:

Stimulate private investment in decarbonisation and clean manufacturing;
Improve cash flow for businesses investing in energy efficiency and renewables;
Strengthen the EU’s industrial base while supporting the 2050 climate neutrality goal.

By aligning tax policy with the Clean Industrial Deal and State aid rules, the EU is laying the groundwork for a coherent fiscal framework that empowers industries to lead the clean transition cost-effectively and competitively.

Posted By : admin 11 Oct, 2025

Preparatory process for the 2026 bidding round of Carbon Contracts for Difference

📢 Germany launches preparatory process for the 2026 bidding round of Carbon Contracts for Difference (Klimaschutzverträge)

On 6 October, the German Federal Ministry for Economic Affairs and Climate Action (BMWK) initiated the preparatory phase for the 2026 bidding round of CO2-Differenzverträge (Carbon Contracts for Difference, CCfDs). Carbon Contracts for Difference are one of the key funding instruments supporting the decarbonisation of energy-intensive industries.

✅ Main purposes of the CCfDs:

📌 CCfDs protect companies investing in low-carbon production processes against price risks. Fluctuations in CO2 and energy prices, as well as cost differences compared to conventional production processes, are compensated over a period of 15 years.

📌 The contracts also aim to accelerate the market ramp-up of new technologies (e.g. industrial heat pumps, hydrogen applications, CO2 capture and storage, and energy storage technologies) and to help establish innovative production processes on the market.

☑️ Eligibility requirements:

📌 Companies are free to decide how to convert their production processes in line with the energy sources used (electricity, low-carbon hydrogen, biomass).

📌 The only requirements are milestones for CO2 savings: 60% from the third year and 90% in the final year of the contract term.

📌 Companies are remunerated based on the actual CO2 savings achieved.

📌 The CCfDs are also open to small and medium-sized enterprises with smaller production facilities.

📅 Schedule:

Participation in the preparatory phase until 1 December 2025 is required for companies wishing to submit bids in 2026.

⚠️ The bidding process remains subject to budgetary approval and state aid clearance by the European Commission.

📘 More information and documentation on the preparatory process are available at https://www.klimaschutzvertraege.info/

➡️ Source: BMWE startet vorbereitendes Verfahren für das Gebotsverfahren 2026 der CO₂-Differenzverträge (Klimaschutzverträge)

Posted By : admin 6 Oct, 2025

Public consultation on CO2 markets and infrastructure in the EU

On 6 October, the European Commission launched an open public consultation on upcoming legislation and impact assessment for CO2 markets and infrastructure.

To meet the EU’s climate neutrality target by 2050, industrial carbon management (ICM) will play a crucial role alongside renewable energy and energy efficiency. Building on the Industrial Carbon Management Strategy, adopted in February 2024, the European Commission has now launched a public consultation on an upcoming legislative initiative for CO2 markets and infrastructure.

🗓️ The consultation is open until 9 January 2026.

➡️ Participate before 9 January 2026: Legislative initiative on CO2 transportation infrastructure and markets

ICM is essential to address hard-to-abate industrial emissions and to maintain a competitive, decarbonised industrial base in the EU. However, the CO2 value chain is still in its early stages. Limited infrastructure, regulatory fragmentation, and investment risks are slowing progress.

The upcoming legislative proposal aims to create a well-functioning, competitive, and integrated EU CO2 market, ensuring that captured CO2 can be safely and efficiently transported, stored, or utilised across borders.

✅ Key topics covered in the consultation include:

📌 Regulatory framework design, ensuring investor confidence, flexibility, and long-term predictability.

📌 Cross-border CO2 transport, removing barriers linked to international treaties and aligning with neighboring countries.

📌 Infrastructure planning and permitting, improving coherence and speeding up authorisations under TEN-E, NZIA, and the CCS Directive.

📌 Market access and third-party rules – defining access rights, financing models, and governance structures for CO2 networks.

📌 CO2 quality standards, supporting the development of common European standards to enable interoperability and avoid market fragmentation.

This initiative is expected to become a cornerstone of the EU’s Clean Industrial Deal, providing the regulatory and financial foundations for scaling up industrial carbon management technologies.

Posted By : admin 5 Oct, 2025

EU ETS II Pricing Scenarios

September 17, 2025 BloombergNEF published its Report: EU ETS II Pricing Scenarios

As the EU prepares to launch its new carbon market for road transport and buildings (EU ETS II) in 2027, the discussion about its social and political sustainability is gaining momentum.

In June 2025, sixteen EU Member States voiced concern that high carbon prices could impose heavy costs on households and businesses – risking a public backlash despite broad support for climate goals.

BloombergNEF’s new analysis explores what a “carbon price sweet spot” could look like — one that balances affordability for consumers with effective emissions reduction.

✅ Key insights:

📌 Under its current design, EU ETS II could see prices as high as €122/tCO₂ in 2030, the highest globally, cutting emissions by 40% (vs. 2005) but raising fuel prices by up to one-third.

📌 Flexible market design could help stabilize prices around €78/tCO₂, with limited impact on emission targets.

📌 Recycling 50% of ETS II revenues into electrification subsidies could lower average prices to €67/tCO₂.

📌 Complementary policies, such as stricter vehicle and building efficiency standards, could further ease pressure, keeping prices around €86/tCO₂.

📌 A combined approach could reduce average prices to €45/tCO₂, cutting social costs by 55% while maintaining climate ambition.

In parallel, the European Commission highlights the broader benefits of carbon pricing:

✅ Cutting emissions by 50% since ETS launch 20 years ago.

✅ Funding innovation through the Innovation Fund and Modernisation Fund.

✅ Supporting over €200 billion in clean investments.

✅ Mobilising €86.7 billion via the Social Climate Fund (2026–2032) to protect vulnerable households.

☑️ Main Conclusion: The success of ETS II will depend on finding this balance, ensuring climate ambition remains credible while keeping the transition socially fair and politically resilient.

➡️ Source: 5 things you should know about carbon pricing

Posted By : admin 3 Oct, 2025

Defossilizing Industry: Considerations for Scaling-up Carbon Capture and Utilization Pathways

Figure: Global distribution of CCU-relevant policy frameworks

Source: Wood Mackenzie Lens Carbon

The World Economic Forum has just published its white paper: “Defossilizing Industry: Considerations for Scaling-up Carbon Capture and Utilization Pathways”.

✅ The report highlights key challenges for Carbon Capture and Utilization (CCU) policy framework:

📌 The global CCU policy landscape remains fragmented, inconsistent, and often conflicting.

📌 Sequestration is prioritized over reuse, while the lack of an effective global carbon price undermines wider deployment of capture technologies.

📌 These gaps create uncertainty for innovators and reduce policy credibility for investors.

📌 Current frameworks are regionally specific, leading to concentrated initiatives in certain jurisdictions and heightening risks from policy instability.

📌 Scaling CCU requires a more coordinated, credible, and globally consistent policy environment to unlock its full potential for industrial decarbonization.

➡️ Source: World Economic Forum. Defossilizing Industry: Considerations for Scaling-up Carbon Capture and Utilization Pathways. White Paper. September 2025

Posted By : admin 1 Oct, 2025

Updates to the Hydrogen Acceleration Act

Bundesregierung beschließt Entwurf für Wasserstoff-Beschleunigungsgesetz

On October 1, 2025, the Federal Cabinet adopted the draft Hydrogen Acceleration Act to speed up the development of hydrogen infrastructure and reduce bureaucratic hurdles.

✅ Key highlights:

📌 Covers the entire hydrogen supply chain: production, import, storage, transport, and pipelines.

📌 Includes facilities for synthetic fuels to decarbonize shipping & aviation.

📌 Declares hydrogen infrastructure projects as overriding public interest, ensuring higher priority in approval decisions.

📌 Introduces clear deadlines, digitalized processes, and faster procurement.

📌 Simplifies regulations for natural hydrogen through amendments to the Federal Mining Act.

☑️ What next:

The Bundesrat and Bundestag will deal with the draft law.

➡️ Full draft law available here: Entwurf eines Gesetzes zur Beschleunigung der Verfügbarkeit von Wasserstoff und zur Änderung weiterer rechtlicher Rahmenbedingungen für den Wasserstoffhochlauf und weiterer energierechtlicher Vorschriften

➡️ Source: Aufbau der Wasserstoff-Infrastruktur wird schneller, digitaler und unbürokratischer – Bundesregierung beschließt Entwurf für Wasserstoff-Beschleunigungsgesetz

Posted By : admin 30 Sep, 2025

2nd Call for International Hydrogen Projects

📢 Federal Ministry for Economic Affairs and Energy launches 2nd Call for International Hydrogen Projects.

The Federal Ministry for Economic Affairs and Energy (BMWE), together with the Federal Ministry of Research, Technology and Space (BMFTR), has published the second call for funding under the guidelines for international hydrogen projects. The BMWE thus supports the use of German hydrogen technologies abroad and aims to prepare and implement import routes to Germany.

✅ Key points:

📌 German companies can submit project outlines until 18 December 2025.

📌 Funding supports the development of renewable hydrogen and its derivatives outside Europe, with a focus on industrial-scale production plants and accompanying research (e.g., feasibility studies).

📌 Special emphasis is placed on German SMEs – technology suppliers and project developers – to strengthen expertise abroad and open new markets.

📌 Up to €30 million per project may be granted (subject to budget approval until 2026).

📅 On 13 October 2025, an information event will provide details on funding opportunities and allow participants to ask questions.

➡️ Register here: Förderaufruf zur novellierten Förderrichtlinie für internationale Wasserstoffprojekte

The initiative contributes to shaping a global renewable hydrogen market and securing future import routes to Germany, while showcasing German hydrogen technologies internationally.

➡️ Source: Bundeswirtschaftsministerium veröffentlicht zweiten Förderaufruf der Förderrichtlinie für internationale Wasserstoffprojekte

Posted By : admin 28 Sep, 2025

Briefing Delegated act on low-carbon hydrogen

I dove into the European Parliamentary Research Service Briefing on the “Delegated Act on Low-carbon Hydrogen”.

✅ Key takeaways:

📌 The delegated act, adopted by the Commission on 8 July 2025, is the final missing piece of the EU’s hydrogen regulatory framework. Its was adopted by the Commission on 8 July 2025, pending scrutiny by the Parliament and the Council until 10 November.

📌 The delegated act does not create financial incentives or targets but provides much-needed regulatory clarity on what qualifies as low-carbon hydrogen, supporting cross-border trade, investment, and a future EU hydrogen market.

📌 Electrolysis via the grid is only eligible in countries with very low grid emissions (currently: France, Sweden, Finland). Elsewhere, PPAs will play a key role.

📌 Nuclear power: The delegated act does not include a specific methodology for producing low-carbon hydrogen from nuclear power plants. The Commission plans to launch a public consultation on a draft methodology for this production method in 2026.

📌 Blue hydrogen faces stricter requirements. LNG-related emissions must be calculated using a methane-intensity methodology by 2027/28, raising uncertainty.

📌 Production costs: CCS-based hydrogen remains cheaper in the near term, while electrolytic hydrogen is still challenged by high EU power prices.

📌 Imports: The same low-carbon criteria apply to non-EU producers; a region-specific GHG methodology could follow by 2028.

⚠️ Parliament had already stressed in 2021 that low-carbon hydrogen must be seen as a bridging technology in the short and medium term, but also called for a clear distinction from renewable hydrogen.

The upcoming months will show whether Parliament and Council accept this final building block of EU hydrogen regulation or send the Commission back to the drawing board.

➡️ Source: European Parliamentary Research Service. Briefing: Delegated act on low-carbon hydrogen

Posted By : admin 27 Sep, 2025

H2international magazine

The H2international magazine now offers a free subscription to their English publication, which provides valuable insights and updates on hydrogen developments worldwide.

I hope this resource will be useful for those who want to stay up to date with the latest hydrogen news.

🔗 Free subscription link: https://www.h2-international.com/

Posted By : admin 20 Sep, 2025

Hydrogen Import & the European Hydrogen Bank

This weekend I dove into the report “Assistance in the development of an auction design and necessary pre-conditions for a European import auction for renewable hydrogen under the European Hydrogen Bank.”

The EHB is based on domestic and international pillars. While the domestic pillar for hydrogen production in the EU has already reached its third auction, the international pillar for hydrogen import is still under development. This report provides the groundwork for shaping a European import auction for renewable hydrogen and its derivatives.

My Key Takeaways:

1️⃣ Strategic recommendations:

The report outlines how to design RFNBO import auctions at EU level, based on hydrogen market analysis and lessons from existing/planned auction schemes in Europe and beyond.

2️⃣ Two case studies analyzed:

📌 Pipeline-based imports (pure hydrogen):

Can secure supply/offtake contracts between EU buyers and third-country producers in neighbouring regions.
Encourages pipeline investments.
Works via demand-side auction models to bridge funding gaps for RFNBO purchases, without assuming counterparty risks.

📌 Ship-based imports (derivatives: ammonia, methanol, eSAF):

Helps EU offtakers secure RFNBO volumes for hard-to-abate sectors and quota compliance.
Contributes to scaling up the global RFNBO market.

3️⃣ Contract terms

To scale import volumes effectively, the maturity transformation between purchase and sales agreements should be limited, with hydrogen sales agreements (HSAs) running for 2–5 years.

4️⃣ Auction design priorities

Import auctions should:

Bridge the cost gap between RFNBO production abroad and EU willingness to pay.
Accelerate market ramp-up.
Send a strong demand signal to international producers.
Strengthen cooperation among EU Member States.

💡 This report is an important step toward designing the EU’s approach for international hydrogen imports as a key enabler for the energy transition.

➡️ Source: European Commission: Directorate-General for Energy, Fraunhofer ISI and Guidehouse Germany GmbH, Assistance in the development of an auction design and necessary pre-conditions for a European import auction for renewable hydrogen under the European Hydrogen Bank – Final report, Publications Office of the European Union, 2025, https://data.europa.eu/doi/10.2833/9380870

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