BAKU, Azerbaijan, May 24. This week, the Council of the European Union (EU) adopted a regulation and a directive establishing common rules for the market of renewable and natural gases and hydrogen within the EU, while also reforming the existing gas legislation, Trend reports via the EU Council website.
"The new regulations aim to facilitate the transition to renewable and low-carbon gases, such as hydrogen, to achieve the EU's decarbonization objectives and establish a permanent platform for gas and hydrogen demand aggregation in EU countries," the website reads.
Specifically, the regulations mandate integrated and transparent network planning across the EU, following the principle of "energy efficiency first" and adopting a forward-looking approach.
Gas and hydrogen network operators will be required to develop a new 10-year plan for the EU networks, according to the website.
An important aspect approved by the EU Council is the termination of long-term fossil gas contracts by EU countries starting in 2049, aiming to phase out fossil fuels.
"These regulations will encourage the adoption of renewable and low-carbon gases, especially hydrogen, in regions with industrial operations producing high carbon dioxide emissions, supported by tariff rebates and incentives from Member States to facilitate market integration, particularly for the nascent hydrogen market," stated the Council of the EU.
The EU is expected to support the hydrogen market for five years.
These regulations will be effective in November 2024, with EU member states given two years to align their national legislation with the directive's provisions.
This package of measures to develop hydrogen and decarbonized gas markets is part of the Fit for 55 EU legislative package, aiming to update existing gas regulations and directives adopted in 2009.
Azerbaijan has been exporting gas to the EU under 25-year contracts since December 2020, with ongoing negotiations for medium-term contracts (10–15 years).
Azerbaijan is also preparing a national decarbonization strategy, taking into account efforts in hydrogen and other low-carbon gases.