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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 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 25 Sep, 2025

3rd German-African Green Hydrogen Forum 2025

EU funding opportunities for Hydrogen import from Africa

On 23 September, I had the pleasure of speaking at the German-African Green Hydrogen Forum at Hochschule Anhalt, University of Applied Sciences. It was inspiring to exchange ideas on the main challenges of hydrogen imports with delegates from different countries and leading experts in the hydrogen sector.

A special thank you to Markus Holz, Ana Beatriz Barbosa Turiel do Nascimento, and the entire team at Hochschule Anhalt for their outstanding hospitality and for organizing such a professional and engaging event.

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

Posted By : admin 16 Sep, 2025

Hydrogen from Peru to the EU

In this episode of Clean Energy Talks video blog with Roxana Serpa, Vice President of H2 Peru Association, we talk about hydrogen import from Peru to the EU:

I. Introduction of H2 Peru Association

The work of H2 Peru and its main activities in the hydrogen sector.

II. Renewable Energy Potential in Peru

What is the estimated renewable energy potential in Peru that could be used for green hydrogen production?

III. Regulatory framework

What recent developments in Peru’s regulatory framework could support the export of hydrogen to the EU?

IV. Transporting Hydrogen to Europe

What are the most viable options for transporting hydrogen from Peru to the EU?

Green ammonia
Sustainable aviation fuels (SAF)
Renewable methanol (for maritime transport).

V. Hydrogen Production Outlook

What opportunities exist for launching hydrogen production projects in Peru in the near to mid-term?

VI. Hydrogen Hubs

What is meant by a hydrogen hub, and what plans or locations are being considered for such hubs in Peru?

VII. Certification

How is Peru preparing to meet the certification requirements for hydrogen exports to the EU?

➡️ Reach out here on LinkedIn or contact me for more details on the video topic.

Posted By : admin 12 Sep, 2025

IEA Global Hydrogen Review 2025

International Energy Agency Global Hydrogen Review 2025

The hydrogen sector is growing despite persistent barriers and project delays.

✅ Key Takeaways from the IEA Global Hydrogen Review 2025:

1️⃣ Global demand continues to rise

Hydrogen demand reached 100 Mt in 2024, up 2% from 2023.
Fossil fuels still dominate supply: 290 bcm natural gas and 90 Mtce coal equivalent.
Low-emissions hydrogen grew 10% in 2024, but remains <1% of total production.

2️⃣ Project delays and cancellations

Uptake of low-emissions hydrogen lags behind ambitions due to high costs, regulatory uncertainty, and slow infrastructure development.
The sector shows signs of maturity: 200+ low-emissions projects received FIDs since 2020, up from just a few demonstration projects.
Innovation across the value chain is strong.

3️⃣ Production outlook to 2030

Announced low-emissions projects have decreased from 49 Mtpa to 37 Mtpa due to delays and cancellations, mainly in electrolysis.
However, operational projects and projects reached FIDs could deliver 4.2 Mtpa by 2030, a fivefold increase from 2024.
An additional 6 Mtpa could come online by 2030 if effective policies and offtake mechanisms are implemented.

4️⃣ Costs and competitiveness

The cost gap between low-emissions hydrogen and fossil-based production remains a challenge, though expected to narrow by 2030.
China and Europe could see cost-competitive renewable hydrogen.
In the US and Middle East, CCUS for producing low-emissions hydrogen may remain more competitive in the near term.

5️⃣ Policy and demand signals

Momentum for hydrogen offtake agreements slowed in 2024: 1.7 Mtpa signed vs. 2.4 Mtpa in 2023.
Most agreements remain in refining, chemicals, shipping, and some aviation.
Policies to create demand are progressing but full impact will depend on implementation.

Global Hydrogen Review Summary Progress: Production, Electrolyser installed capacity, Announced electrolyser projects by 2030, Electrolyser manufacturing capacity, Announced electrolyser manufacturing capacity by 2030, Policies and Investment

Figure: Global Hydrogen Review Summary Progress

➡️ Source: Global Hydrogen Review 2025

Posted By : admin 9 Sep, 2025

Global clean hydrogen projects

Figure: Global clean hydrogen projects by project status

Source: Hydrogen Council & McKinsey Project & Investment Tracker, as of December 2020, May 2022, May 2024 and July 2025

The global hydrogen sector is evolving, and this image from the Global Hydrogen Compass 2025, published by Hydrogen Council, illustrates the current landscape.

✅ Key Takeaways:

📌 The clean hydrogen project pipeline now includes 1,749 projects, of which 510 are committed —meaning they have taken FID, started construction, or begun operation. Over 80 projects were added in the past year.

📌 The overall hydrogen project pipeline has grown 7.5 times since 2020, with 214 net new projects added since May 2024, despite a slowdown in announcements.

📌 Europe leads in the number of projects with commercial operation dates (CODs) by 2030, followed by North America and China.

📌 Around 70% of committed projects are renewable, with just under half located in Europe.

📌 While Europe focuses on developing infrastructure and demand centers for an import-oriented hydrogen industry, China’s renewable projects are on average 10 times larger.

📌 A higher share of Chinese projects (50%) are already FID+ compared to Europe (30%) and North America (35%). Early-stage projects in China may be undercounted due to lower public visibility.

➡️ Source: Global Hydrogen Compass 2025, Hydrogen Council

Posted By : admin 27 Aug, 2025

Potential for hydrogen trade

Figure: Percentage of demand for hydrogen and related commodities met by imports

Source: The potential for green hydrogen and related commodities trade

🌍 Around 20% of global hydrogen demand is expected to be met through international trade – with the remaining 80% produced locally, according to the International Renewable Energy Agency.

✅ But the picture varies significantly across regions:

Japan & South Korea may import up to 90% of their green hydrogen needs.
EU expects imports to cover around 30%.
Canada foresees only about 4% reliance on imports.

These differences underline the importance of tailored policies and strategies to match each country’s energy landscape.

➡️ Source: IRENA (2025), Analysis of the potential for green hydrogen and related commodities trade, International Renewable Energy Agency, Abu Dhabi.

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