Green hydrogen mitigates the EU’s energy dependence and leads to climate neutrality in 2050.

Abstract

In order to achieve the climate neutrality objective pursued by the European Green Deal, approved by the Commission in December 2019, in July 2020 it approved a hydrogen strategy to accelerate the development of renewable hydrogen and achieve a carbon-neutral economy. Hydrogen is a key element in this transition since it can be used as a raw material, fuel or energy carrier and also as energy storage, and therefore, it constitutes a technology that will contribute in a very significant way to achieve the objective that in 2050 Europe will be a zone with zero pollution.In the proposal to amend the Directive on energy taxation, the Commission underlines that taxation contributes to achieving the objectives proposed in the REPowerEU and the European Green Deal. Specifically, with regard to renewable hydrogen, the application of the minimum tax rate of 0.15 EUR/GJ is foreseen, a tax rate lower than the reference rate. This lower tax rate is applicable, due to the potential contribution that renewable hydrogen can make to achieve the EU´s long-awaited climate neutrality by 2050.