BAKU, Azerbaijan, July 14. The European Commission’s proposal to amend the current legislative framework for gas contains significantly more stringent unbundling rules on hydrogen operations than what is already foreseen for natural gas in the third energy package, reads the joint statement from the European Social Partners in the gas sector, Eurogas, representing the employers, and EPSU and industriAll Europe representing the trade unions, Trend reports.
“These could discourage certain infrastructure operators from investing in hydrogen infrastructure or investing in much needed training and reskilling of its labour force. Ownership unbundling essentially requires infrastructure operators, if related to a company active in competitive activities, to divest their dedicated hydrogen infrastructure assets, even if they are efficiently separated from that company in terms of management, organization, legal form, and decision making. We are convinced that it is not in the interest of either workers, users or companies and that it does not serve the transition towards a hydrogen infrastructure to apply more stringent unbundling rules for hydrogen. Instead, the EU legislative framework must facilitate the essential transition of the gas infrastructure and organize a Just Transition for its workforce,” the statement says.
The authors of the statement not that the concept of a Just Transition must be firmly embedded in EU decarbonization policy.
“No one can be left behind and individuals must have the right to job-to-job transitions, including through training and life-long learning with opportunities in strategic high-quality jobs. Adaptation must be supported in territories, regions, and industries, and the social impacts must be managed properly. The new unbundling rules for hydrogen infrastructure risk putting this core principle into question.
This is why it is necessary to priorities the conversion of existing gas assets rather than building new grids; the cost saving is 81 percent, according to European Commission estimates. The use of existing networks allows supply and demand to be combined and connected to existing underground storage facilities with greater storage capacity. Adaptation not only has economic benefits, including for consumers, but also best utilizes existing assets.
It is imperative to align top-down climate policy goals with bottom-up collaboration. This process should include all relevant stakeholders involved in the future integration of hydrogen in the energy system.
The gas industry has a clear role to play in reaching carbon neutrality. Its infrastructure is an asset which can be adapted to help lower the costs of the energy transition. The gas industry employs millions of people across Europe. Today’s young talent will manage and maintain that infrastructure. Active social dialogue must start today to prepare for the changes ahead.
It is clear how important it is to facilitate the transition of the gas industry and its large, qualified workforce. Not doing so will have serious social and economic consequences leaving countless workers without employment and wasting crucial human capital and energy infrastructure.
The proposed unbundling rules for hydrogen risk doing just that. The provisions essentially prohibit (especially after 2030) the combination of hydrogen and methane operations by a single entity. This will mean that most gas infrastructure operators at distribution and transmission level will be strongly discouraged from investing in retrofitting, repurposing of existing natural gas infrastructure, or building dedicated new hydrogen infrastructure. Companies are unlikely to invest in assets they risk not being able to own or operate the moment there are built.
Without the prospect of a return on investment, they are also unlikely to invest in the crucial reskilling of the workforce required to build and operate those assets. At the same time, the rule might hamper the attraction of new talents that will be essential to implementing the energy transition, at a time where shortages of skilled workers already risk slowing down the energy transition. Increasing competition should not be pursued as an end in itself, especially where benefits are unclear, but it risks significant negative effects for workers and users. Recent months have been exceptionally challenging for consumers, businesses, and workers, and sensible action is warranted now,” reads the statement.
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