The Role of Climate Policy in the Hydrogen Economy: An Analysis of the EU and the US

Abstract

Globally, renewable and low-carbon hydrogen is attracting popularity for reducing greenhouse gas emissions in hard-to-abate sectors. This article employs comparative legal analysis to examine regulatory frameworks governing hydrogen in the EU and the US over the past five years, interrogating climate goals as drivers for hydrogen sector development. Initially characterised by divergent approaches, with the EU emphasising renewable hydrogen through its RFNBO framework and the US adopting technology-neutral definitions, both jurisdictions are now converging towards broader low-carbon pathways, reflecting shifting priorities driven by amongst others political and geopolitical pressures.

The article investigates whether, inter alia, (i) climate goals drive hydrogen market creation; (ii) renewable-only hydrogen can emerge absent climate targets; and (iii) current low-carbon hydrogen frameworks can deliver on climate objectives whilst balancing energy security and geopolitical considerations. It also looks at the possible effect of the ICJ Advisory Opinion on Climate Change on the hydrogen economy. The findings contribute to a more comprehensive understanding of the relationship between climate policy and hydrogen regulation, demonstrating that climate goals are catalysts for renewable and low-carbon hydrogen market development.