On May 21, 2024, the European Council adopted the final version of the “Hydrogen and Decarbonised Gas Market Package”, also referred to as the “Gas Package”. The new package updates the rules for gas network and market operation, aligning the gaseous energy sector with the broader aims of the EU Green Deal and Climate Law.

The Gas Package presents a review and revision of the Gas Directive 2009/73/EC and Gas Regulation (EC) No 715/2009, which was initiated as part of the EU’s ‘Fit for 55’ Package.

The package includes two components: one, an update to the Regulation on “the internal markets for renewable gas, natural gas and hydrogen” (Gas Regulation); and two, an update to the Directive on “common rules for the internal markets for renewable gas, natural gas and hydrogen” (Gas Directive). Each targets different aspects of the gas market:

The Directive:

• Establishes common rules for the transport, supply and storage of hydrogen using the hydrogen system.
• Sets rules relating to the organisation and functioning of the gaseous energy/hydrogen sector, access to the market, the criteria and procedures applicable to the granting of authorisations for networks, supply and storage of hydrogen and the operation of systems.

The Regulation:

• Sets non-discriminatory rules for access conditions to natural gas and hydrogen systems.
• Facilitates the emergence and operation of a well-functioning and transparent wholesale market for natural gas and hydrogen with a high level of supply security.

Namely, the Gas Package proposed the publication of Delegated Acts to provide detailed guidelines for defining low-carbon gases, including hydrogen. Several aspects will have to be monitored, as the Delegated Acts will also shape the methodology for calculating emissions savings:

• Further clarification is still needed from the European Union regarding the regulatory framework for Carbon Capture and Storage (CCS), especially for cases outside of Europe (type of storage, methodologies for CO2 capture rates…).
• Upstream emissions methodologies for natural gas are specified in the RFNBO Delegated Acts, but they are EU-specific. These methodologies need to be clarified for other geographies.
• The possibility of co-processing low-carbon hydrogen with grey or RFNBO hydrogen remains unclear and should be evaluated in the Gas Package DAs.
• The RFNBO Delegated Acts only address Power Purchase Agreements (PPAs) from renewable sources. The Gas Package Delegated Acts should consider the possibility of incorporating PPAs from other low-carbon non-renewable sources (e.g. nuclear power).

The impact of the Gas Package Delegated Acts on GHG methodologies and the development of low-carbon certification schemes will be studied by CertifHy in consultation with its members.