Jun 10, 2025
The European Commission considers taking legal action against those who have delayed implementing RED III.
The European Commission is set to initiate infringement proceedings against EU member states that have not met the May 2025 deadline for transposing RED III into national law, according to Lukasz Kolinski, Director for Green Transition and Energy System Integration at the Commission's Directorate-General for Energy.
During a webinar by Hydrogen Europe, Kolinski mentioned that as of May 21, only one member state had fully implemented laws for renewable hydrogen, while 10 others had partially transposed the revised renewable energy directive. When discussing ways to encourage compliance, he highlighted that infringement actions had already been taken against members for failing to meet deadlines related to the directive. He emphasized that member states must transpose permitting procedures into their laws by mid-2024 before the primary deadline for RFNBO targets.
Kolinski reiterated the Commission's commitment to use infringement proceedings for non-compliance with RED III transposition. Progress in transposition will be considered when evaluating compliance levels.
RED III is viewed as essential for the adoption of RFNBOs. At the recent World Hydrogen Summit in Rotterdam, European market participants expressed concerns that uncertainty surrounding national RED III transposition and specific RFNBO sub-targets was delaying long-term contracts in the renewable hydrogen sector. Kolinski reassured project developers that the ambition level for RFNBO targets would remain intact despite these delays.
Matt Hodgkinson, a senior hydrogen analyst at S&P Global Commodity Insights, noted that the uncertainty caused by the delay in transposing RED III is affecting renewable hydrogen project developers, leaving compliance expectations unclear for industrial hydrogen consumers by 2030. The lack of clarity regarding potential penalties also complicates decision-making for fuel suppliers and industrial consumers on project investments.
Kolinski highlighted that the European Commission aims to launch a mechanism in September 2025 to balance renewable hydrogen supply and demand. On June 5, Platts assessed the production cost of green hydrogen in Germany at Eur8.13/kg, down from a peak of over Eur14.50/kg in December, while costs in the Netherlands were Eur7.77/kg.
To accelerate RFNBO uptake, Kolinski pointed out that lengthy permitting procedures were a significant delay factor, stating that project preparation is taking too long.
RED III is part of a broader regulatory framework, including FuelEU Aviation and FuelEU Maritime, and the expansion of the Emissions Trading System (ETS) to the maritime and aviation sectors.
RED III aims to boost renewable energy deployment in the EU, establishing a target of at least 42.5% renewables by 2030. It also sets binding targets for RFNBOs, mandating that they constitute at least 1% of the energy supplied to transportation by 2030 and at least 42% in industry, increasing to 60% by 2035. Diogo Chatzimarkakis, CEO of Hydrogen Europe, noted that only Romania and Czechia have fully transposed RED III with quotas for transport and industry. Consultations for transposing RED III into national laws are in progress in the Netherlands, Germany, and other EU states.
During a webinar by Hydrogen Europe, Kolinski mentioned that as of May 21, only one member state had fully implemented laws for renewable hydrogen, while 10 others had partially transposed the revised renewable energy directive. When discussing ways to encourage compliance, he highlighted that infringement actions had already been taken against members for failing to meet deadlines related to the directive. He emphasized that member states must transpose permitting procedures into their laws by mid-2024 before the primary deadline for RFNBO targets.
Kolinski reiterated the Commission's commitment to use infringement proceedings for non-compliance with RED III transposition. Progress in transposition will be considered when evaluating compliance levels.
RED III is viewed as essential for the adoption of RFNBOs. At the recent World Hydrogen Summit in Rotterdam, European market participants expressed concerns that uncertainty surrounding national RED III transposition and specific RFNBO sub-targets was delaying long-term contracts in the renewable hydrogen sector. Kolinski reassured project developers that the ambition level for RFNBO targets would remain intact despite these delays.
Matt Hodgkinson, a senior hydrogen analyst at S&P Global Commodity Insights, noted that the uncertainty caused by the delay in transposing RED III is affecting renewable hydrogen project developers, leaving compliance expectations unclear for industrial hydrogen consumers by 2030. The lack of clarity regarding potential penalties also complicates decision-making for fuel suppliers and industrial consumers on project investments.
Kolinski highlighted that the European Commission aims to launch a mechanism in September 2025 to balance renewable hydrogen supply and demand. On June 5, Platts assessed the production cost of green hydrogen in Germany at Eur8.13/kg, down from a peak of over Eur14.50/kg in December, while costs in the Netherlands were Eur7.77/kg.
To accelerate RFNBO uptake, Kolinski pointed out that lengthy permitting procedures were a significant delay factor, stating that project preparation is taking too long.
RED III is part of a broader regulatory framework, including FuelEU Aviation and FuelEU Maritime, and the expansion of the Emissions Trading System (ETS) to the maritime and aviation sectors.
RED III aims to boost renewable energy deployment in the EU, establishing a target of at least 42.5% renewables by 2030. It also sets binding targets for RFNBOs, mandating that they constitute at least 1% of the energy supplied to transportation by 2030 and at least 42% in industry, increasing to 60% by 2035. Diogo Chatzimarkakis, CEO of Hydrogen Europe, noted that only Romania and Czechia have fully transposed RED III with quotas for transport and industry. Consultations for transposing RED III into national laws are in progress in the Netherlands, Germany, and other EU states.