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The European Parliament approves reforms for a more sustainable and resilient gas market

April 15, 2024 | News
  • It will contribute to the reduction of carbon emissions in the gas sector, in response to the challenge of climate change.
  • Measures will be implemented to safeguard the most vulnerable consumers and ensure transparency in the market.
  • The countries of the European Union will have the ability to limit imports from Russia, thus strengthening energy security in the region.
  • To diversify its energy sources and distance itself from fossil gas, the use of biomethane and hydrogen will be promoted through specific legislation.

Last Thursday, MEPs backed amendments aimed at simplifying the introduction of renewable and low-carbon gases, including hydrogen, into the EU energy market.

The purpose of the new directives and regulations on the gas and hydrogen markets is to decarbonise the European Union’s energy sector, improving both the production and integration of these cleaner alternatives.

These measures seek to ensure a stable energy supply, especially in times of geopolitical tensions, such as those arising from the conflict between Russia and Ukraine, while effectively addressing the challenge of climate change. During negotiations with the Council on the directive, MEPs focused on securing provisions related to transparency, consumer rights and support for those at risk of energy poverty. The plenary session supported the text with 425 votes in favor, 64 against and 100 abstentions.

The new regulation, approved with 447 votes in favor, 90 against and 54 abstentions, will strengthen the mechanisms to achieve fair prices and a stable energy supply. In addition, it will allow Member States to restrict gas imports from Russia and Belarus. The legislation will also establish a joint gas purchasing system to avoid competition between Member States and launch a pilot project to strengthen the EU hydrogen market over five years.

Significant focus will also be placed on increasing investments in hydrogen infrastructure, especially in coal regions, as part of the transition towards more sustainable energy sources such as biomethane and low-carbon hydrogen.

Statements from the speakers

Jens Geier (S&D, Alemania), rapporteur of the directive, said: “Europe’s steel and chemical industries, which are difficult to decarbonise, will be at the center of the development of a European hydrogen market. This will allow fossil fuels to be phased out of industry, ensure European competitiveness and preserve employment in a sustainable economy. The separation rules applicable to hydrogen network operators will comply with existing best practices in the gas and electricity market.

Jerzy Buzek (PPE, Polonia), rapporteur of the regulation, has declared: «This text will transform the current energy market into one based mainly on two sources: green electricity and green gases. This is a big step towards meeting the EU’s ambitious climate goals and making the EU more competitive on global markets. “We have introduced a legal option for EU countries to stop importing gas from Russia if there is a security threat, giving them a tool to gradually eliminate our dependence on a dangerous monopolist.

Next steps

Both texts will have to be formally adopted by the Council before their publication in the Official Journal.

Background

The legislative package reflects the EU’s growing climate ambition, as set out in the European Green Deal and the ‘Target 55’ programme. The updated directive aims to decarbonize the energy sector and includes provisions on the rights of consumers, transmission and distribution system operators, third-party access and integrated network planning, and independent regulatory authorities. The new regulation will encourage existing natural gas infrastructures to integrate a greater proportion of hydrogen and renewable gases, through high tariff discounts. It includes provisions to facilitate the blending of hydrogen with natural gas and renewable gases, and greater EU cooperation on gas quality and storage.