Exploring regulatory strategies for accelerating the development of sustainable hydrogen markets in the European Union

Abstract

The development of sustainable hydrogen markets will play a vital role to achieve energy sovereignty and climate neutrality by 2050. The article analyses what tools and methods are available to contribute to the development of such markets. To identify these tools and methods, the article elaborates on goals and principles of good regulation, and argues for the consideration of flexibility in the regulatory framework to be responsive to technological, societal and economic changes. Considering Germany and the draft EU hydrogen and decarbonised gas market package as case studies, the article develops the argument that legislators should consider regulatory experimentation and apply comparative methods to develop well-working regulatory strategies and an appropriate set of rules for the development of the markets.